U.S. Infrastructure Spending Seen Rising After Decade of Decline
U.S. state and local governments look slated to spend more on crumbling infrastructure as federal aid bolsters their ledgers, low interest rates makes it cheaper to borrow and the nation’s economy recovers from the pandemic downturn, Moody’s Investors Service said.
The increased spending would reverse a decade-long trend of lackluster capital investment that has plagued the nation’s bridges, roads and schools, Moody’s said in a report Monday.
States and cities must request federal reimbursement from the American Rescue Plan Act by the end of 2024. Passage of additional dollars, like the $580 billion infrastructure proposal, could boost spending even more.
“Over the last decade, the condition of state and local governments’ capital assets has steadily weakened because of underinvestment,” Moody’s analysts wrote.