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The Role of Munis in the Future of Cities: Reassessing Infrastructure Investing Amid Global Market Volatility

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    Report

  • 16 Pages
  • October 2022
  • Region: Global
  • Arizent
  • ID: 5715054
The $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) signed into law in November 2021 marked one of the largest federal investments in infrastructure in history. The law features hundreds of new discretionary programs on top of traditional formula funding, including $550 billion of new spending over five years.

But macroeconomic conditions have changed dramatically since then, adding new layers of costs and complexity to an already expensive and complicated system of planning infrastructure projects.

As three-quarters of the infrastructure built in the United States is funded by state and local governments and the municipal bond market they tap to finance it, industry participants are concerned about the impact of a recession, higher interest rates and inflationary pressures on the cost of funding infrastructure in the U.S., and the viability and effective execution of the new law itself

Table of Contents

  • Introduction
  • Key findings
  • About this report
  • Research methodology
  • The macro picture
  • Recession fears, rising rates and loss of revenue are 2023 headwinds
  • Rising rates may impact infrastructure projects and state and local government plans
  • Infrastructure impacts across towns and cities can be significant
  • Confidence in policy and politics to fund infrastructure is low
  • There is positive news on the infrastructure forefront
  • Climate change and ESG have become a bigger focus
  • Conclusions

Companies Mentioned

  • Per Refinitiv