On Oct. 17, the Congressional Budget Office (CBO) issued two report detailing public spending and financing tools on transportation and water infrastructure from 1956 to 2017. The spending report showed that public spending on Transportation and Water Infrastructure has been fairly consistent as a share of Gross Domestic Product (GDP) at about 2.3 percent, which is below the 3.0 percent peak in 1959. The finance report illustrates that more than half of state and local spending on transportation and water infrastructure has been financed through bonds that provide federal tax preferences or through federally supported loan programs.
The reports provide information on six types of infrastructure: highways, mass transit and rail, aviation, water transportation, water resources, and water utilities. Public spending – federal, state, and local governments – on transportation and water infrastructure totaled $440 billion in 2017. The majority of that spending came from state and local governments, providing $342 billion, while the federal government accounted for $98 billion. Of the state and local government spending, 30 percent was for capital expenditures and 70 percent was for operation and maintenance. While most federal spending – 73 percent – went towards capital expenditures and 27 percent went to operations and maintenance.
AGC will continue to advocate for increased infrastructure investment at all levels of government.
For more information, please contact Sean O’Neill at [email protected] or (202) 547-8992.
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