WASHINGTON – Earlier in November, the U.S. House of Representatives passed the $1.2 trillion Infrastructure and Jobs Act, which cleared the Senate in August. The bill, signed into law by President Joe Biden Nov. 15, is over 2,700 pages long. Even at that length, the bill is short on details regarding what it might mean for New Jersey and Cape May County.
The hype around the bill does, however, give some insight into what it might mean for the Garden State. The broad outlines of spending are provided, but the actual allocation of funds to projects will be an ongoing activity for numerous federal agencies.
New Jersey will receive an estimated $12.3 billion in guaranteed transportation and transit funding over the next five years. Funding intended for Northeast corridor transportation improvements will also benefit many New Jersey citizens.
After that, it looks like the bill sets up a competitive environment in which states and counties can vie for project funding through a variety of grant programs.
Funding Outline
Transportation
Roughly $110 billion will go to transportation programs. New Jersey should see almost $8 billion for highways, roads, bridges, and dams. Even at that massive level of funding, the bill is providing only about 14% of the national $786 billion backlog for repairs to roads and bridges identified by the American Society of Civil Engineers (ASCE).
ASCE’s 2021 Report Card on New Jersey notes that the state has roughly 8% of bridges rated structurally deficient, along with 229 dams considered to be high hazard potential, with 37% of roads in poor condition. What it all means is a high level of need to be prioritized for funding.
Sen. Bob Menendez (D-NJ) outlined the almost $48.2 billion earmarked for New Jersey as $6.9 billion for highways and roads, $1.1 billion for bridges, $104 million for electric vehicles, and $24 million for ferry services.
Transit
About $4.2 billion is expected to come to the Garden State for public transit improvements, including the electrification of transit vehicles. Cape May County has never seemed to be high on the state priorities for public transit. How much of that funding will find its way to projects that benefit the less populated southern counties is unclear. The funds will be spread over a six-year span, with $626 million for the immediate fiscal year 2021 allocation.
Broadband
Sen. Corey Booker (D-NJ) said New Jersey will get a minimum of $100 million for the expansion of internet broadband. The goal is to expand opportunities in rural areas and among city dwellers who cannot afford high-speed internet access.
Gateway Project
The bill reanimates the project to complete a new tunnel under the Hudson River, along with funding for passenger rail improvements and modernization grants aimed at projects along the Northeast Corridor.
This part of the bill includes $30 billion for Amtrack’s Northeast Corridor and $11 billion for capital improvement grants, programs Menendez identified as sources that can be tapped for completion of the Gateway Project.
Investments
Thousands of miles of new power lines are likely, along with investments in renewable energy transmission and storage. Making the electric grid more resilient is a high priority. The bill calls for a national infrastructure of electric vehicle chargers.
In addition, the bill contains funding for water infrastructure, airport modernization, superfund cleanup, weatherization, and even cybersecurity. Funding for these priorities is national and spread over five years. There will likely be several projects from across the nation competing for funding in these areas.
The $12 billion investment in New Jersey infrastructure would be the largest such infrastructure investment in the state’s history, but it still only represents a little over 1% of the funding attached to the bill.
Hard Part
The hard part will come as numerous agencies develop protocols for linking funding to specific projects. Some funds will immediately be allocated to projects already approved but stalled for lack of funding.
The real danger in the allocation process will come when politically important needs butt up against rational infrastructure planning. Building the 21st-century infrastructure is not always going to coincide with the immediate goals of the political process.
The bill calls for eight years of funding, with much of it front-loaded into the first five years. The danger some see is that a rush to get early results to show the voters may defeat more strategic and rational planning of the national infrastructure.
Here, in Cape May County, governing bodies and mayors began the process of having “shovel-ready” projects for when funding opens. Cape May City discussed having projects ready to go for the modernization of its water treatment plant and distribution system. Municipalities across the county are preparing to compete for immediate grants.
This is a big bill, with massive funding and unprecedented opportunities. For the county, the benefits will be in the details that are not yet available.
To contact Vince Conti, email vconti@cmcherald.com.
