Planes, Trains and Automobiles: How Congress Shapes Transportation Infrastructure

Planes, Trains and Automobiles: How Congress Shapes Transportation Infrastructure

The bipartisan surface transportation funding process helps the states maintain highways and public transportation.

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Rush hour at a Los Angeles freeway interchange. Congress began investing in roadway infrastructure in 1916 using formula grants to distribute federal funds to states.

Congress uses surface transportation authorization to deliver transportation and related infrastructure funding to states, and it considers broad legislation such as the FAST Act and MAP-21 on a multiyear cadence.

This long-term funding cycle allows states to plan for big infrastructure projects and investments. The most recent round of surface transportation funding was folded into the $1.2 trillion Infrastructure Investment and Jobs Act, also known as the IIJA or Bipartisan Infrastructure Law. The 2021 act was the most significant investment in American infrastructure in modern history. The IIJA expires at the end of the 2026 federal fiscal year, and reauthorization discussions are expected to begin in earnest in early 2025 with the new 119th Congress.

According to the Congressional Research Service, Congress began investing in roadway infrastructure in 1916 using formula grants to distribute federal funds to states. After passage of the 1978 Surface Transportation Assistance Act, Congress began using what would eventually become modern multiyear surface transportation packages to fund highways and public transportation. Congress updated surface transportation packages in 1982 to include state equity provisions, which ensured states did not receive significantly more or less than their citizens paid in federal highway taxes, the Congressional Research Service reports. State equity provisions changed in 2012 to guarantee that states received at least a 95-cent return on every dollar of federal highway taxes they pay, according to the Federal Highway Administration. The IIJA temporarily altered the funding structure of surface transportation packages by introducing competitive discretionary funding and utilizing advanced appropriations, as well as implementing new formula funding.

Surface transportation packages have historically been an avenue for congressional bipartisanship. The IIJA continues this tradition by authorizing roughly equal amounts of funding between Democratic and Republican states, even if individual states have received varying awards, the Brookings Institution reports. IIJA funding has been awarded in every state and U.S. territory. While agencies charged with administering IIJA funds have already obligated a significant portion, much of the funding has yet to be apportioned, especially in discretionary grant programs, according to the Transportation Department.

The IIJA is credited with encouraging and emphasizing the significant need for sustained infrastructure investment by all levels of government to protect lives and physical assets. The act contains a multitude of programs, but some of the most significant surface transportation investments include improving passenger rail, conducting road and bridge repair and expanding public transportation.

Beyond surface transportation, the IIJA includes funding for other critical infrastructure items like broadband, airports, water infrastructure and the electric grid. The Bipartisan Infrastructure Law Guidebook, the BIL Launchpad and Bipartisan Infrastructure Law Grant Programs webpages offer additional IIJA program information, funding breakdowns and resources.

While the IIJA has yet to be fully executed, one success has been its direct impact on local communities by allowing direct applications for certain program funding for the first time. While this has been burdensome for some communities with limited capacity to pursue the complex process of applying for federal grants, the sheer volume of opportunities has increased the overall likelihood of success. Thus far, 60,000 construction projects have received IIJA support, according to the Transportation Department. The act also has spurred private investments that have increased overall national infrastructure spending by implementing tax credits and other incentives.

The Congressional Research Service reports that one of the biggest challenges for the IIJA has been the significant inflationary impacts that have reduced the purchasing power of the legislation's $1.2 trillion. Additionally, some members of Congress have attempted to claw back unspent IIJA discretionary funds to redirect them toward other priorities.

Given the lessons learned from the IIJA and the continued need for infrastructure investment, congressional discussions for the next surface transportation bill could include:

• Maintaining, increasing or reducing legislation cost and scope.
• Increasing technical assistance for building capacity in local communities.
• Streamlining and consolidating funding applications.
• Resilience.
• Environmental Impacts.
• Expanding funding authorizations to include operational uses.
• Maintaining, increasing or reducing Buy America Requirements.
• Maintaining, increasing or reducing workforce funding and programs.

As 2025 discussions begin with a new Congress and a new administration, NCSL remains committed to furthering states' Surface Transportation Federalism priorities through congressional advocacy. Learn more about surface transportation reauthorization in NCSL's Outcome of Election Will Decide Future of Federal Infrastructure Law.

Megan Bland is a legislative specialist in NCSL's State-Federal Affairs Division.