America’s Aging Infrastructure Needs Our Support
Since Franklin D. Roosevelt coined the phrase “first 100 days” in July of 1933 to draw attention to the level of impact his presidency had on the American people early in his tenure, the 14 presidents to take office since his presidency have largely followed FDR’s lead, proposing bold, transformative actions upon entering the White House. With the 100-day mark now behind him, it is clear President Joe Biden’s ambitions are no less bold than his predecessors, calling on Congress to pass multi-trillion-dollar recovery packages that would restructure the economic and social framework of America as the country rebounds from the impacts of COVID-19 on families and businesses.
On March 31, 2021, President Biden unveiled his long-awaited American Jobs Plan, a $2.25 trillion investment package which would allocate roughly $880 billion to “traditional” physical infrastructure such as roads, bridges, transit and drinking water infrastructure over eight years as well dedicate funding to make infrastructure in communities more resilient. On April 28, 2021, in his first address to Congress as president, President Biden touted the American Jobs Plan as a means of driving massive job growth -- projecting 2.7 million new jobs as a result of the plan -- and economic activity to “get America moving again” after 22 million jobs were lost due to the 2020 pandemic lockdowns.
Dubbed “Amtrak Joe” for his support of passenger rail, President Biden has long advocated for modernizing the built environment to facilitate job growth and better position the U.S. to compete in the global marketplace, highlighting infrastructure as a priority both on the campaign trail and as one of his first priorities in the Oval Office.
It is no secret that our nation’s many infrastructure networks -- from the electric grid to transit systems to drinking water pipes and port facilities -- have been underfunded and gradually deteriorating for decades. American Society of Civil Engineers (ASCE) has been issuing Infrastructure Report Cards, which assess the condition and future needs of our nation’s infrastructure systems, every four years since 1998 in an effort to shed light on what is normally an “out-of-sight, out-of-mind” issue for most Americans. In the recent 2021 Report Card for America’s Infrastructure, America received a score of ‘C-‘, the highest score ASCE has given since the Report Card began over 20 years ago but still a far cry from where the U.S. should stand. While the cumulative grade improved from the ‘D+’ given in 2017, 11 of the 17 categories of infrastructure assessed were still given grades in the ‘D’ range. Across the 17 categories, there is a mounting deferred maintenance backlog and there are some assets such as dams and levees where the nation is still taking inventory of location and condition. For example, there are an estimated 10,000 miles of levees -- earthen embankments that hold back water and protect communities -- that are not yet even catalogued in the National Levee Database. Tragedies such as the levee breaches during Hurricane Katrina show a stark example of what can happen when these assets are not closely monitored.
ASCE’s grades are determined by eight key criteria, which are: capacity, condition, funding, future need, innovation, operations & maintenance, public safety, and resilience. Over 30 senior professional civil engineers from among ASCE’s membership form a committee that spends one year pouring through federal government data, talking to industry groups, and analyzing nationwide trends to determine the grades based on those criteria. Each infrastructure category is also accompanied by detailed policy recommendations to raise those grades.
The correlation between a thriving economy and well-maintained infrastructure networks has been well-documented in the American Society of Civil Engineers’ Failure to Act economic report series. Conversely, failing to allocate the necessary resources to ensure our infrastructure networks are safe and reliable has a cascading negative impact on the U.S. economy. According to the most recent Failure to Act study released in 2020, the U.S. is expected to underinvest in its infrastructure systems by $2.59 trillion by 2029 and more than $5.6 trillion by 2039. By continuing current under-investment trends, the U.S. GDP will lose more than $10.3 trillion by 2039, including $2.4 trillion in exports, Americans will lose a collective $9 trillion in disposable income, and there will be 3 million fewer jobs.
American businesses and workers will feel the effects. Over the next 20 years, each American household will spend an additional $3,300 per year due to infrastructure deficiencies like hitting a pothole, lost productivity from sitting in traffic on congested, inefficient road networks, power outages, and water main breaks. That equates to nearly $63,000 in additional expenditures for each American household over 20 years.
The 3 million fewer jobs will not just be limited to those that work directly on infrastructure projects such as engineers and construction workers; job impacts will be spread throughout various industries in the U.S. Roughly 47% of the projected jobs lost by 2039 will be in high wage, high productivity jobs, particularly in sectors such as manufacturing and healthcare.
The production of manufactured goods -- everything from paper, paints, and food products to electronics, automobiles, and appliances -- require robust and adequately functioning infrastructure. When a lock on the inland waterway system breaks down, barges loaded with raw materials are stuck until a fix can be made. Meanwhile, when a manufacturing plant suffers an electrical outage, machines are costly to restart, and productivity plummets as workers stand idly by, waiting for the lights to turn back on. Trucks carrying the finished product need to reroute around a bridge that is posted for load, meaning it cannot accept heavy vehicles. A congested port adds to delivery times, rendering the United States a less desirable trading partner.
The good news is these trends can be reversed if all levels of government work together to close the infrastructure investment gap. ASCE’s Failure to Act study shows that each household will lose $9 per day due to infrastructure deficiencies, but the United States could close the investment gap at a cost of just $5.48 per day per household. The Failure to Act report also shows that 80% of the gross output losses, 79% of GDP declines and 78% of disposable income losses occur in the second half of the 20-year study between 2030 and 2039, further emphasizing the need to act now to prevent future losses.
Restoring and modernizing the built environment can seem like a daunting task, so where do we start?
Of the $2.59 trillion the U.S. is set to underinvest in infrastructure by 2029, the largest share of underinvestment -- $1.2 trillion -- is in our nation’s surface transportation network, which includes bridges, roads, transit, and rail. Transit received the lowest grade (D-) in the 2021 Infrastructure Report Card, noting that 45% of Americans lack reliable access to public transit, particularly in rural areas with a smaller ratepayer base and higher costs per mile. The sector was already facing a backlog of $176 billion before the pandemic decimated revenues. During the height of the pandemic New Jersey Transit and New York’s Metropolitan Transportation Authority (MTA) lost more than 90% of their usual ridership levels, while Los Angeles’ Metro ridership was cut in half. With so much revenue lost, the sector’s maintenance backlog will grow exponentially. While less ridership means less usage of aging fleets and systems, 18.4% of transit vehicles and 36.4% of transit facilities were already in poor condition as of 2017, according to the Department of Transportation. Without additional revenues, these conditions will continue to worsen as systems age.
While surface transportation faces the largest amount of capital needs, and deficiencies in the system are often the most noticeable for daily commuters, our infrastructure networks are interconnected and rely on each other to operate efficiently. Rail delays can lead to backups on roads, ports and inland waterways. An interruption in the energy grid can disrupt transit operations and water services. Furthermore, the interconnectedness of our systems can only be enhanced to achieve greater goals as the weakest links are improved. The nation’s renewable energy future and standing as a world leader in the fight to reduce carbon emissions depends on our efforts to improve the reliability of transmission lines. It is crucial that all 17 categories as defined by the Infrastructure Report Card are tended to, with a focus on asset management, long-term sustained investment, and strengthening resilience.
Infrastructure investment has long been considered a bipartisan priority. While neither President Biden’s nor the GOP’s plans would fully close the $2.59 trillion investment gap over 10 years, each would provide substantial federal assistance greater than any we have seen in decades. The $2.59 trillion burden, however, should not solely fall upon the federal government’s shoulders. Closing the investment gap is a collective effort shared by federal, state and local governments, in addition to participation from the private sector.
It is hard to imagine a scenario where progress completely stalls on an initiative that has been so central to President Biden’s focus in his first 100 days. Both sides of the aisle have demonstrated interest in improving our surface transportation network, expanding broadband access, modernizing drinking water and wastewater systems, and preparing these structures for looming climate impacts.
American families and businesses cannot wait. The average family is losing $3,300 a year while we all endure the status quo.
The dismal grades and sky-high investment numbers can seem daunting, but we believe these problems are solvable. Investing in infrastructure will protect jobs, fast-track economic recovery, and create resilient communities.
ASCE urges bold leadership and action, sustained investment, and a focus on resilience to raise the national infrastructure grade over the next four years and improve the quality of life for all Americans so that families and business can thrive.
EDITORS’NOTE:
Since this article was submitted on June 1, 2021, President Biden and a bipartisan group of ten Senators announced on June 24, 2021 that an agreement on a $1.2 trillion framework for a physical infrastructure spending bill was reached. The eight‐year plan, of which about $579 billion includes new spending, covers investments in roads and bridges, public transit, railways, electric vehicle infrastructure and transit, airports, ports and waterways, water, power grid, and broadband infrastructure, and environmental remediation and resilience. Congress will need to take this bipartisan framework and draft legislation that can pass the House and Senate before it can become law.
About the Author:
Emily Feenstra is the Managing Director of Government Relations and Infrastructure Initiatives at the American Society of Civil Engineers (ASCE). In that role she leads the division responsible for government affairs, media relations and infrastructure policy for the Society, including ASCE’s Infrastructure Report Card and the Failure to Act economic study series. Previously she served as Deputy Director of the US Water Alliance, where she managed the Washington, DC office and oversaw a diverse portfolio of projects and led partnerships to advance one water management in America. Emily has also held senior positions at the Intelligent Transportation Society of America and as a consultant for the Washington State Department of Transportation. She serves on the Eno Center for Transportation Board of Advisors, and holds a bachelor’s degree from Duke University and a Master of Public Administration from the University of Washington.