On April 5, White House Press Secretary Jen Psaki stated that the administration is planning to propose that money from its infrastructure package be paid out through a “competitive bidding process,” and that states and other entities would “have to apply for funding for rebuilding the infrastructure in their states or local communities. On April 6, Psaki clarified these comments, noting that while “it will be up to Congress” to shape the bill, the administration expected “a mix” of formula grants and competitive grants. She went on to say “…existing transportation funding flows through formula grants, which gives states a lot of flexibility on how to prioritize and spend their federal dollars based on what their needs are,” but that “competitive grants are a more targeted way to direct funds to specific policy goals, often based on criteria set by Congress.” It is assumed that money for transportation infrastructure in the Biden plan will be in addition to a surface transportation reauthorization bill, which provides funding for the core highway and transit state formula programs. AGC will continue to monitor the trajectory of President Biden’s infrastructure proposal.
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