It’s raining money on the states. FHWA has sent $3.1 billion in unused money to the states. All 50 states, plus the District of Columbia, received shares of the pie. Texas received the largest allotment, $280 million, followed by California, with $274.5 million; Florida, $158.6 million; Pennsylvania, $154 million; and New York, $145.3 million. Here is an Engineering News-Record story by Tom Ichniowksi with the details.

Over the years, it has become more difficult for States to apply and use Federal money. The restrictions and red tape has forced states to find new ways to create and use their own money rather than the highly restrictive Fed money they have been used to. In this latest round, states are required to obligate the money to projects by September 26, giving agencies around two weeks to find projects or else lose the money. States are also required to match federal with nonfederal dollars.  

What appears to be happening is states are attaching the Fed money to existing state-funded projects already underway. This will not spur on new projects directly, but I think we will see an after effect where State money that was originally allocated to projects will now being available for future state-funded projects which usually have less restrictions than projects funded by federal dollars.  

In addition to the FHWA money the US DOT is taking on a new round of TIGER grants worth about $500 million.  

Federal dollars spent on road infrastructure has hit an all-time historic low. However, with the shift in how states are funding projects, we have seen little downward turn in available funds. This influx of federal dollars can bring with it an industry-wide uptick so long as states are able to get in front of it with their projects.  

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