Historic freight infrastructure investments secured through IIJA passage

Following years of policy development and months of negotiations, Congress today passed the Infrastructure Investment and Jobs Act (IIJA). The historic $1.2 trillion investment package provides five years of surface transportation reauthorization funding in addition to funding for new programs aimed at improving the reliability, safety, and resiliency of the country’s transportation infrastructure. In total, the bill will invest $567.4 billion in our nation’s transportation systems.

The Coalition for America’s Gateways and Trade Corridors (CAGTC) congratulates Congress and the Administration on delivering this generational investment in our nation’s infrastructure. The IIJA makes $77.9 billion available to fund freight system needs across the United States, including a 40 percent funding increase for the existing freight formula and Infrastructure for Rebuilding America (INFRA) programs. While unprecedented, this level of funding is needed to address freight infrastructure development backlogs across the nation.

“Our freight system is experiencing an unprecedented level of stress as our economy rebounds from the global pandemic. The IIJA’s historic investment in freight infrastructure comes at a critical time and will enable strategic investments necessary to improve our supply chain infrastructure and ensure it can meet the challenges and demands of tomorrow,” stated CAGTC Executive Director Elaine Nessle. “Fulfilling a long-held CAGTC priority, the legislation also establishes an Office of Multimodal Freight Infrastructure and Policy. Following months of supply chain disruptions, this office stands to guide investments from a national, systems-wide perspective with an eye toward supply chain efficiency, safety, and reliability. The office’s leadership on holistic freight policy and planning will have an immediate impact and support economic competitiveness in the years to come.”

Since its inception 20 years ago, CAGTC has been a proponent of the competitive grant process to fund large-scale freight infrastructure projects, which are difficult to fund through traditional distribution methods such as formula programs. In particular, CAGTC has advocated for competitive grant programs that select projects through merit-based criteria that identify and prioritize investments with a demonstrable contribution to national freight efficiency. The IIJA provides an unprecedented $100 billion in broad funding flexibility through its discretionary grant programs.

"We applaud President Biden and Congressional proponents for their leadership in enacting this bipartisan infrastructure bill which will stand as a transformative achievement for our nation. The bill will authorize unprecedented levels of funding for highway and multimodal programs and freight policies long championed by CAGTC. The Infrastructure Investment and Jobs Act will help strengthen and rebuild our national freight network, which is facing growing supply chain demands after decades of federal underinvestment," said Paul Hubler, Chairman of CAGTC and Director of Government and Community Relations for the San Gabriel Valley Council of Governments. 

A commitment to investment in goods movement and dedicated funding for freight programs is critical to ensure a safe, efficient, reliable, multimodal supply chain that will continue to stoke the engine of commerce and support job growth. CAGTC has called for a comprehensive goods movement policy with funding commensurate to our nation’s vast system needs since its formation in 2001. Our Coalition looks forward to working with lawmakers and administrators in the coming months and years to ensure that our national freight network benefits from the IIJA’s investment and policies provided by this historic legislation.