Fed’s Share in the Infrastructure Investment and Jobs Act

Published: August 18, 2021

Federal Market AnalysisInfrastructurePolicy and Legislation

Deltek identified nearly $460B slated for federal departments within the new bipartisan infrastructure bill, $290M of which will filter to additional recipients.

The U.S. Senate wrapped up the month of July with the introduction of a bipartisan deal for the Infrastructure Investment and Jobs Act (H.R. 3684) to invest billions in U.S. roads, bridges, transportation and other programs that fall under “infrastructure.”

The Federal Market Analysis team dove into the 2,700 page bill to breakdown the bill’s funds in “who, what, where” categories, and to help identify potential contract addressable dollars.

The below table identifies funds within the bill slated for federal departments, or that may be intended for further recipients beyond the federal level. Keep in mind that the totals mentioned henceforth include amounts identified as both authorized and appropriated funds. Congress will provide appropriated funds once the bill becomes law. Amounts listed as authorized would need to be appropriated by Congress through further amendments to the existing bill or within separate appropriations before that money becomes available.

Source: Deltek, H.R. 3684

Understandably, the majority of funds in the infrastructure bill labeled as “Federal/State and Local” stem from funds set to trickle through DOT to state and local governments. Sample line items in this category include $36B in grants for Intercity Passenger Rail improvements and $16B in Amtrak national network grants. A total of $203B from the Federal Highway Administration (FHWA) will filter to state and local entities for roads, bridges and other major projects not accounted for in other line items within the bill.

Sample investments that will filter from federal departments to industry include $1.2B in each of the next five fiscal years (FY 2022 - 2026) out of DOE for power infrastructure programs to energy companies. Under the “Federal/Academia” category, the U.S. Geological Survey will receive $307M to enlist academic partners in the design and build of facilities supporting minerals research ($167M) and rare earth element extraction ($140M).

The below table provides a breakdown of the $170B in “federal-bound” funds by area of investment as defined by the Federal Market Analysis team. The dollar amounts identified below do not specify particular recipients within investment descriptions, yet may result in potential contracting opportunities in the next several fiscal years.

Source: Deltek, H.R. 3684

DOT leads the majority of federal-targeted funds with a total of $48.6B, followed by Energy ($47.1B), Interior ($19.4B), and EPA ($18.7B), among others. Given that many individual line items fund multiple entities (federal, state, local, tribal, industry and academia), these numbers are likely to change as we continue to root out federal-only spending. The below sampling helps to provide a glimpse into the top dollar line items within federally directed funds:

  • $16.2B in grants under the Office of Energy Efficiency and Renewable Energy – Energy Programs account
  •  $14.7B at EPA to reauthorize capitalization grants under the Federal Water Pollution Control Act
  • $11.6B towards construction of ports and waterways under the U.S. Army Corps of Engineers
  • $8.3B for water and related resources at Interior’s Bureau of Reclamation
  • $6.0B at DOE to establish a Civil Nuclear Credit Program to evaluate nuclear reactors projected to close due to economic factors
  • $5.0B out of the Federal Aviation Administration for facilities and equipment at airports

The bill currently resides in the Senate where amendments are being offered to finalize the legislation. The bill may face some uncertainly in the House as progressive Democrats push to expand the infrastructure package and advance it with a broader $3.5 trillion budget resolution in the forthcoming weeks.