IIJA Expiration Creates Uncertainty for Road and Bridge Funding

The Infrastructure Investment and Jobs Act (IIJA) expired in September 2026, ending a six-year authorization that provided $326 billion for repair, modernization, safety, resilience, and asset management of the nation’s roads and bridges. As Congress considers the next surface transportation law, state and local transportation agencies face uncertainty about the scale and structure of future federal support. That uncertainty can affect project budgets, schedules, and procurement pipelines even before a new law is enacted. No active solicitation, bid deadline, or award is identified in the available reporting; this is a funding and reauthorization signal rather than a current procurement notice.

The IIJA’s road and bridge investment was divided between $273 billion in formula funding and $53 billion in competitive grants. Formula funding—about 83% of the total—was distributed through established statutory programs using factors such as population and roadway miles, giving states a more predictable base for maintenance and preservation. The law increased formula funding by 32% compared with the 2015 FAST Act and introduced new formula programs intended to address needs that older programs were not designed to cover, including bridge repairs and resilience. Competitive grants, meanwhile, gave local governments a direct route to pursue certain large-scale projects without relying on a state to serve as intermediary.

The funding cliff has different implications across the market. Lawmakers are likely to preserve core highway funding, but the future of many discretionary grants—particularly those supporting resilience, modernization, and bridge upgrades—remains unclear. If advance appropriations are not renewed, even a short-term extension could result in an immediate 13% reduction in road and bridge funding, while some grants or newer programs could be reduced or discontinued. State and local agencies may therefore need to revisit project sequencing, scope, and financing assumptions, while contractors should avoid treating previously available IIJA funding levels as a reliable baseline for future work.

The IIJA also expanded federal support for bridges, providing approximately $40 billion, or 22% more than the FAST Act, for bridge construction, preservation, and maintenance. Eligibility expanded to include bridges owned by state and local governments, not only those on the National Highway System. However, the increased authorization did not translate directly into equivalent purchasing power or rapid delivery. An analysis cited in the source estimated that highway construction cost increases reduced the purchasing power of Federal Highway Administration (FHWA) dollars by $21.5 billion from late 2020 to 2022. Labor shortages, procurement bottlenecks, and supply-chain disruptions further slowed projects, meaning that future funding plans must account for delivery capacity as well as nominal dollar levels.

• IIJA expired in September 2026, and Congress is considering the next federal surface transportation law; the timing and funding structure remain uncertain.
• The law provided $326 billion for roads and bridges during 2021–2026: $273 billion in formula funding and $53 billion in competitive grants.
• Formula funding made up 83% of the total and increased 32% over the 2015 FAST Act, supporting a relatively predictable state funding base through established programs.
• Competitive grants enabled local governments to pursue some large-scale projects directly; track whether planned projects depend on these grants and whether eligibility or funding may change.
• Without renewed advance appropriations, a short-term extension could still produce an immediate 13% reduction in road and bridge funding; some discretionary grants and newer programs may be reduced or discontinued.
• Bridge funding under the IIJA was approximately $40 billion, or 22% more than under the FAST Act, with eligibility extended to state- and locally owned bridges beyond the National Highway System.
• Construction-cost increases reportedly reduced the purchasing power of FHWA dollars by $21.5 billion from late 2020 to 2022; labor shortages, procurement bottlenecks, and supply-chain disruptions also constrained delivery.
• Contractors should map current and planned state and local work to its funding source, test project schedules against possible reductions, and incorporate state budget decisions and reauthorization status into pipeline forecasts.
• The reporting identifies no active solicitation, award, or specific bid deadline; firms should treat this as a market-planning signal, not an immediate bidding opportunity.