Full Benefits of New Infrastructure Law Delayed Until Congress Passes FY22 Funding Bill

While Congress averted a government shutdown on December 2 by passing an extension of fiscal year (FY) 2021 government funding, their inability to agree on new FY 2022 spending levels will hinder new and increased funding provided for in the Infrastructure Investment and Jobs Act (IIJA) from becoming available. Here’s what you should know:

  • The new programs and funding levels that the IIJA calls for must be provided for through a new FY22 funding bill.
  • As Congress could not agree to new spending levels for FY22 in October when the FY21 bill expired, they’ve since passed two clean, short-term extensions of that funding that do not account for new spending that laws passed since that date have called for.
  • The most recent extension does not expire until February 18, 2022.
  • This means, without quicker Congressional action, states will not be able to access the IIJA’s roughly 20% funding increase for Highway Trust Fund formula programs, along with any new transportation programs the law created.
  • AGC, along with other stakeholders, is calling on Congress to pass a new FY22 transportation-related government funding bill as soon as possible that will provide full funding for all new and increased spending in the IIJA.
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