Government Affairs Market Briefing (Hosted by MIC)-Government Affairs Market Briefing (Hosted by MIC) Slides

Government Affairs Market Briefing (Hosted by MIC) Slides

Pdf Summary

The ACEC Government Affairs Market Briefing on March 27, 2025, led by Matt Reiffer, Jordan Baugh, and Nando Gomez, covered key infrastructure funding and policy updates.<br /><br />Annual appropriations for highway and transit programs increased for FY2025, including $61.3 billion for highways (up $1.2 billion from FY24) and $14.3 billion for transit (up $289 million). Airport infrastructure received a $4 billion allocation, $650 million more than FY24. However, funding for the Army Corps of Engineers was cut by $1.4 billion (44%), affecting flood risk management, ecosystem restoration, and water infrastructure projects. Clean and Drinking Water State Revolving Funds (SRFs) retained $1.64 billion and $1.13 billion respectively, without earmarks.<br /><br />The Infrastructure Investment and Jobs Act (IIJA) expires September 2026, with congressional efforts underway to reauthorize surface transportation programs. While a full IIJA 2.0 is unlikely, coordinated industry advocacy is ongoing for common goals in the new Congress. The 2025 tax package may support transportation funding, with some GOP support for electric vehicle fees. The IIJA spend-out shows substantial obligation of funds across highways, transit, aviation, rail, and multimodal sectors. Bipartisan commitment exists, but challenges include potential executive actions on fund disbursement, concerns over deficits, and mid-term election politics.<br /><br />Water infrastructure saw $43.4 billion in supplemental SRF funding under IIJA, targeting lead service line replacement ($15B), emerging contaminants like PFAS ($4B), and small disadvantaged communities ($5B). SRF authorization expires FY2026, with reauthorization legislative efforts anticipated. Advantages include bipartisan and broad stakeholder support, though challenges include federal regulatory scrutiny and prior erosion by congressional earmarks.<br /><br />Energy priorities focus on leveraging IRA funding for renewables, supporting natural gas infrastructure growth, promoting grid modernization to meet AI and data center demands, and expanding nuclear technologies such as small modular reactors.<br /><br />For further inquiries, contact mreiffer@acec.org, jbaugh@acec.org, or fgomez@acec.org.

Keywords

ACEC Government Affairs

Infrastructure Funding

Highway and Transit Appropriations

Airport Infrastructure

Army Corps of Engineers Funding Cut

Infrastructure Investment and Jobs Act (IIJA)

Surface Transportation Reauthorization

Water State Revolving Funds (SRFs)

Energy Priorities and IRA Funding

Grid Modernization and Nuclear Technologies