Infrastructure, Investment and Jobs Act

Infrastructure law - the basics

On Nov. 15, 2021, the Infrastructure, Investment and Jobs Act (IIJA) was signed into law. This is a large, complex piece of legislation that funds multiple areas over a span of years. It will require state, local and federal partnership and detailed analysis to fully implement. The Arizona Department of Transportation is currently working with our federal partners to better understand this legislation’s ultimate impact. This is an extensive process and is not a matter of simply accepting money to be used immediately. Funds may be allocated either through a set formula or through a competitive process. 

What we know at this time

For highways in Arizona, Arizona expects to receive an increase of more than $200 million per year over the next five fiscal years (2022-2026). That is part of the overall $5.3 billion in funding for the state of Arizona based on federal funding formulas. “Formula funding” is money that is allocated from the federal government to the state. ADOT will retain some of the new formula funds from the IIJA, and some will be sent to local government organizations for their use. The exact amounts are currently unknown, and we expect to see funding notices from federal partners by early 2022. 

What we don’t know yet

The IIJA also creates three new federal formula programs and several new discretionary grant programs. Discretionary programs require that money be applied for in a competitive process. ADOT will need additional guidance from federal partners on how these programs will operate before we know how we can utilize them in Arizona. We expect many new opportunities from the creation of these programs, and ADOT stands ready to use these funds to improve Arizona’s infrastructure.