Title: It’s Time for States to Invest in Infrastructure | Center on Budget and Policy Priorities
Headings: It’s Time for States to Invest in Infrastructure
POLICY FUTURES
It’s Time for States to Invest in Infrastructure
Investment in Public Infrastructure Is Falling, With Real Consequences
The Nation’s Infrastructure Needs Improvement
State and Local Governments Are the Primary Stewards of the Country’s Infrastructure
How States Pay for Infrastructure Projects
Infrastructure Spending Is Down Across Government
Investment in Public Infrastructure Fuels Economic Growth
Well-Targeted Public Investment in Infrastructure Improves
Private Productivity, Research Shows
Public Infrastructure Investment Can Spur Job Growth
Investment in Public Infrastructure Can Improve a State’s Quality of Life, the Environment, and Opportunity
It’s Time for States to Invest More in Infrastructure
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Content: More federal help would be welcome, but states should take the lead in this area because the type and amount of assistance they’d receive under any new federal initiative remain unclear. The President’s fiscal year 2019 infrastructure proposal, for example, claimed to invest $1.5 trillion in real new federal infrastructure resources, but it is a mirage: the budget in fact would have cut total federal funding for infrastructure in the long run. ( The proposal would have added $200 billion in “new” federal funds that the Administration claimed could support at least $1.5 trillion in investment, but in the long run it would have deeply cut the Highway Trust Fund — and suggests that states and localities would have to fill the gap. [ 1]) President Trump also noted the need for infrastructure investment in his 2020 budget, which again calls for allocating $200 billion but provides no new details on how it would be used. But rather than investing in infrastructure, many states have cut taxes and have offered corporate subsidies in a misguided approach to boosting economic growth. Tax cuts will spur little to no economic growth and take money away from schools, universities, and other public investments essential to producing the talented workforce that businesses need. [ 2] This pattern of neglect of infrastructure by states — the primary stewards (along with their local government partners) of the nation’s infrastructure — has serious consequences for the nation’s growth and quality of life as roads crumble, school buildings become obsolete, and outdated facilities jeopardize public health. States should address unmet infrastructure needs now for several reasons: The investment will improve state economies, now and in the future.