Cities Look to Future of Federal Infrastructure Partnership
As the Infrastructure Investment and Jobs Act (IIJA) approaches its four-year mark, the National League of Cities released a report examining how federal infrastructure dollars are reaching local governments. The analysis shows that municipalities nationwide have benefited significantly, with billions awarded through a combination of direct federal grants, state-administered programs and loans. The report is timed to inform upcoming Congressional decisions as lawmakers prepare to reauthorize major transportation and water infrastructure programs before current funding expires in 2026.
The findings highlight that direct federal funding is the most effective way for cities to quickly address infrastructure needs, especially for larger municipalities, while smaller communities have received a strong share of IIJA funds overall. However, many cities remain disadvantaged by limited access to state pass-through transportation funds and continue to face administrative challenges in managing grants. The report emphasizes the need for continued federal partnership, streamlined processes and sustained investment to ensure municipalities of all sizes can repair, modernize and expand critical infrastructure that supports local economies and quality of life.
