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1 [1] (May 20, 2025)

handle is hein.crs/iftcturivs0001 and id is 1 raw text is: Congressional Research Service Informrig the legislative debate since.1914 0 Updated May 20, 2025 Infrastructure Investment and the Federal Government The condition and performance of infrastructure are generally thought to be important for the nation's health, welfare, and economy. More contentious are the optimal level of infrastructure investment, the effectiveness of this investment, and the appropriate role of the federal government. The current federal role in infrastructure investment is important but limited in size and scope. What Is Infrastructure? There is no agreed meaning of infrastructure. The term generally refers to long-lived, capital-intensive systems and facilities. Some definitions are limited to systems and facilities that have traditionally been provided largely by the public sector directly, such as highways and drinking water systems. Others add predominantly private facilities, such as electricity production and distribution, reflecting both their importance to the economy and the different public-private arrangements through which services can be provided. Some definitions include a narrow range of core systems, typically transportation, energy, water, and telecommunications, whereas others include facilities for such purposes as education, recreation, and health. The concept of infrastructure has become more malleable with the emergence of two other concepts, critical infrastructure and green infrastructure. The idea of critical infrastructure is a reaction to the threat of terrorist attacks, both physical and through computer networks, and to natural disasters. According to the Department of Homeland Security, there are 16 critical infrastructure sectors whose physical or virtual assets, systems, and networks are vital to national security, the economy, and public health or safety. Among them are chemical facilities, critical manufacturing, defense industrial base, and financial services. Green infrastructure encompasses a range of facilities that some consider environmentally friendly, such as wind and solar energy production. As applied to stormwater management, the term refers to facilities that deal with urban runoff at the source, such as rain gardens, bioswales, and permeable pavements. Federal Infrastructure Investment The federal government is an important investor in at least two infrastructure sectors: transportation and water resources, which includes dams and levees. In 2023, according to the Congressional Budget Office, the federal government spent $112 billion on transportation and $13 billion on water resources, whether directly or by making grants to nonfederal entities. These data reflect spending on capital investment as well as operations and maintenance. State and local governments spent far more than the federal government on transportation and water resources infrastructure. State and local governments also spent much more than the federal government on drinking water and wastewater utility infrastructure (Figure 1). Figure I. Public Spending on Transportation and Water Infrastructure, 2023 U Federal U State and Local Governments Water utiities Public Transit and Rail Water Water Transportation Highways Aviation ResourcesN prato . $50 $100 $150 $200 $250 $300 Billions Source: Congressional Budget Office, Public Spending on Transportation and Water Infrastructure, 1956 to 2023, February 2025. Notes: Federal grants to state and local governments are counted as federal spending. Data exclude tax expenditures. Inflation-adjusted public spending on both transportation and water infrastructure increased over the past 10 years, mainly due to higher state and local spending (Figure 2). Figure 2. Annual Public Investment in Transportation and Water Infrastructure (Adjusted for Inflation) Index, 1993= 1.0 State and Lcal Total Spending spendmg 1.30 .,.. .... 1.201 ti ' 1.00 .' Fedrtst.pnd _ 0.90 1993 1998 2003 2008 2013 2018 2023 Source: Congressional Budget Office, Public Spending on Transportation and Water Infrastructure, 1956 to 2023, February 2025. Investment in energy and telecommunications infrastructure comes largely from private companies that own the infrastructure. Oil pipelines, natural gas transmission and distribution systems, and fiber-optic networks are mostly in private ownership. Federal involvement through activities such as construction of federally owned hydroelectric projects and grants to support the deployment of broadband in rural communities accounts for a smaller proportion of total investment in these sectors. tps://crsreports.cong ress.gc

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