Recently, we took a shot at dissecting President Biden’s potential plans for energy investments and improving infrastructure that could come in the next few years, as promised along the campaign trail and as predicted by so many pundits.
A strong dedication to modern infrastructure is expected to join zero-emissions targets and updated fuel economy standards, among others. In anticipation of, at least, some of these policies getting passed sooner than later, there are a host of popular names out there on Wall Street, already getting attention. But just how much money can investors expect to be poured into these sectors over the next few years?
The American Society of Civil Engineers (ASCE) recently released its 2021 Report Card for America’s Infrastructure. Compiled every four years, it comprehensively assessed 17 major infrastructure categories on a range of criteria such as capacity, condition, funding and public safety. They were then scored through a simple A to F school report card format. The good news is that the American infrastructure has improved, with the country’s score climbing from a D+ in 2017 to a C- in 2021. It is the first time the U.S. has been out of the D range in two decades.
The U.S. has $5.9 trillion in infrastructure funding needs up to 2029 with $3.35 trillion in place. The biggest investment gap is in surface transportation (roads, highways, bridges and public transportation systems) which requires a financial injection of $1.2 trillion up to 2029. Drinking water, wastewater and stormwater along with schools also require considerable investment at $434 billion and $380 billion, respectively.