Passed in 2021, the Infrastructure Investment and Jobs Act (IIJA) represented a significant investment in American infrastructure. The IIJA seeks to repair and rebuild roads and bridges and improve transportation options for millions of Americans. New York’s infrastructure, in particular, can benefit from the IIJA. Many of the city’s bridges, subway lines, and tunnels are more than 100 years old. The High Bridge, which connects the Bronx and Manhattan, is the city’s oldest operating bridge at 176 years old. The BMT Jamaica Line includes the oldest existing elevated structure in the city’s public transportation system, dating back to 1885.
But with repair projects ready to commence, elevated inflation has made it increasingly difficult to get them off the ground, threatening their success. To maximize the benefits of the IIJA and ensure that New York's infrastructure goals are met, it's crucial to address these challenges head-on.
With one in 10 local bridges in New York rated in poor condition, the need for infrastructure improvements is dire. But inflation has severely impacted New York’s infrastructure spending power, with a reported $4.4 billion erosion in the state’s five-year Department of Transportation Capital Plan. Fuel costs are up 256%, asphalt costs have jumped 77.5%, and steel costs have increased by more than 115% compared to just a few years ago. This strain has led to delays and budget overruns in key projects, highlighting the need for additional funding and more efficient resource management.
The importance of accurate assessments of infrastructure needs is also underscored, as failures in this area exacerbate the financial difficulties caused by inflation. For instance, New York City's Asset Information Management System (AIMS) has been criticized for underestimating repair needs, leading to poor planning and further stretching limited budgets. An audit by the city Comptroller claimed that, because of consistent improper assessment of the costs of maintaining New York City’s infrastructure assets, the city does not have an accurate understanding of the true costs of maintaining assets in need of repair.
To mitigate the effects of inflation, New York must adopt approaches that include cost management and improving infrastructure assessments. The IIJA provides New York with almost $6 billion in flexible funds. Currently, these are earmarked for highway expansions, but these projects contradict the state’s declared climate goals. The emphasis on highway expansions could lead to increased emissions. A different approach would be to reallocate IIJA funds toward projects that offer the greatest return on investment and align with broader state priorities. For example, a strategic shift towards public transit and green infrastructure could offer more sustainable, long-term benefits.
Despite the financial challenges, New York must continue to prioritize projects that benefit communities, particularly those that are underserved. For instance, New York City has used IIJA funds to develop projects like QueensWay Park, which not only reconnects communities but also provides green spaces and supports environmental sustainability. This approach demonstrates how infrastructure projects can deliver multiple community benefits, even in a difficult economic environment.
To turn any large-impact project into reality, community engagement must be a crucial element, as it ensures that the voices of local residents are heard, and their needs are addressed. By involving communities in decision-making, New York and the private industry can build support for its thoroughly needed infrastructure improvements and ensure that they meet the actual needs of the people they are intended to serve
Ichor’s practice is uniquely positioned to support New York infrastructure projects. Our services can help private industry navigate regulatory hurdles, ensure compliance and mitigate risks, as well as build lasting community support. Through data and geospatial analysis, we can identify communities in need, help with equitable distribution of capital, and assist with risk assessment and mitigation, policy support, and stakeholder mapping. We also work with clients to engage in community dialogues and create impactful partnerships that help get projects greenlighted. To ensure lasting trust and support, community engagement should continue through the life of a project. To learn more, get in touch with our Infrastructure practice today.