As local governments continue to plan and deliver critical infrastructure projects, a new Brookings analysis sheds light on four trends shaping how dollars are being spent, and where city leadership matters most.
Key insights for municipal officials:
- Spending is growing, but not as fast as the need. Inflation-adjusted public infrastructure investment has risen modestly, but as a share of GNP, it continues down.
- States and local governments remain the infrastructure workhorses. States and localities account for more than 75% of total public infrastructure spending, particularly in transportation and water.
- Operations and maintenance costs are rising at the state and local level. While recent federal funding emphasizes capital projects, state and local governments are increasingly bearing the ongoing costs of operating and maintaining infrastructure.
- State and local revenues are driving more of the investment. In 2023, nearly 72% of capital spending on transportation and water projects came from state and local sources, up from 65.8% in the 2010s and just under 60% in the 1970s.
These trends reinforce a clear reality: cities aren’t just building infrastructure—they’re increasingly paying for it. Local leaders must plan strategically, budget wisely, and stay proactive as federal and local roles continue to evolve.