The federal law that has funded the nation’s roads, bridges and transit systems for the past five years (the Infrastructure Investment and Jobs Act, signed in 2021) expires on Sept. 30. Congress recently passed a short-term budget measure that keeps many core highway and transit programs running through Dec.11. But that stopgap did not extend funding for a large group of programs that were set up and paid for differently, and the result is an immediate and significant cut to federal infrastructure spending starting Oct. 1.
To understand why, it helps to know how these programs were funded in the first place. Most federal highway dollars flow through a dedicated account called the Highway Trust Fund, which is supported primarily by fuel taxes. But when Congress passed the 2021 infrastructure law, it also created a separate pool of money, roughly $156 billion over five years, drawn from the general federal budget. Congress locked that money in upfront for the years 2022 through 2026, meaning it did not need to be approved again each year through the annual budget and appropriations process. This approach, known as advance appropriations, gave states and local governments the certainty to plan major projects years in advance.
The Bridge Formula Program is a prime example. It provided $5.5 billion per year specifically for repairing and replacing the nation’s aging bridges, funded entirely through this advance appropriations mechanism. Because Congress’ recent short-term extension only covered the traditional Highway Trust Fund programs, it did not renew the Bridge Formula Program or dozens of similar programs. As a result, no new funding will be available for these programs beginning October 1. In total, the gap amounts to roughly $36.8 billion in annual transportation investment that simply stops unless Congress acts separately to restore it.
Importantly, money already committed to specific projects will continue to flow; the expiration does not pull back funds that are already in motion. But no new project funding will be awarded under these programs until Congress either passes a full reauthorization bill or provides new appropriations.
What does this mean for NPCA members?
For NPCA members, this matters directly. Bridge repair and replacement projects are among the largest drivers of demand for precast concrete products. The same is true of water infrastructure and road safety projects that also relied on this now-expired funding. Without a clear path to renewed investment, contractors and producers face real uncertainty about future unfunded projects, even if the funding gap ultimately proves temporary.
As this series has tracked throughout the year, Congress faces a narrow window to act. The Senate has not yet introduced its own long-term transportation bill, and midterm elections in November will consume much of the legislative calendar. Members should continue to monitor these developments closely and stay engaged with their congressional delegations as negotiations unfold through the fall and potentially into 2027.
Mathew Morgan is a Partner at Barnes & Thornburg LLP, a full-service national business law firm providing advice in all the areas required to do business in today’s marketplace. Matt provides companies and trade associations with strategic, legislative and political counsel on a variety of business-related issues, including taxation, trade/tariffs and appropriations matters. Prior to joining Barnes & Thornburg, Matt served in the White House from 2017-2020 as the chief counsel to the Vice President and as a deputy assistant to the President.