Tracking Transportation Investments in the Infrastructure Investment and Jobs Act and Inflation Reduction Act

The Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) provide substantial funding for U.S. public transit and clean energy, including $91.9 billion for transit via the IIJA and $12.3 billion for transportation via the IRA. Key programs include the Urbanized Area Formula Grants, the State of Good Repair Formula Grants, and the Neighborhood Access and Equity (NAE) program. However, the analysis suggests a continued reliance on car-centric infrastructure, with $307 billion of combined transportation funding directed toward roadway planning and development, potentially undermining climate goals and equity through induced demand and the prioritization of personal electric vehicles over mass transit.

• The IIJA and IRA provide significant but disparate funding for transportation: the IIJA allocates $590 billion to transportation, with $91.9 billion specifically for public transit, while the IRA dedicates $12.3 billion to transportation, including $5.21 billion for pilot programs focused on emission reductions and transportation equity under the Justice40 initiative.
• Specific IIJA programs target infrastructure modernization and maintenance: the Urbanized Area Formula Grants Program provided $7.06 billion in FY 2023 for planning and capital projects, and the State of Good Repair Formula Grants Program provides $23.1 billion to address the repair backlog for infrastructure at least seven years old. Additionally, the Buses and Bus Facilities and Fixed Guideway Capital Investment Grant programs are expected to produce over 4,600 new buses, 80% of which will be low or zero emission.
• The IRA's Neighborhood Access and Equity (NAE) program, funded with $3.2 billion, aims to reconnect communities divided by highways. While 131 projects received funding after the March 13, 2024 deadline, demand far exceeded supply, with 682 applicants requesting over $11.6 billion.
• Despite transit investments, the combined funding of the IIJA and IRA may reinforce car-centric urban design, as 44% ($307 billion) of combined transportation funding is allocated to roadway planning and development. When combined with $119 billion for electric vehicles, this suggests a continued prioritization of personal vehicle ownership over other modes of transport.
• There is a risk that IIJA discretionary funding could increase emissions through 'induced demand' if used to expand roadway lanes rather than repair existing infrastructure, which may hinder the U.S. from meeting Paris Climate Agreement targets.

APA

Cohen, J. (2024). Tracking Transportation Investments in the Infrastructure Investment and Jobs Act and Inflation Reduction Act. Environmental and Energy Study Institute. https://www.eesi.org/articles/view/tracking-transportation-investments-in-the-infrastructure-investment-and-jobs-act-and-inflation-reduction-act

Chicago

Cohen, Joshua. Tracking Transportation Investments in the Infrastructure Investment and Jobs Act and Inflation Reduction Act. Environmental and Energy Study Institute, 2024. https://www.eesi.org/articles/view/tracking-transportation-investments-in-the-infrastructure-investment-and-jobs-act-and-inflation-reduction-act.

Wikipedia

{{cite report |last1=Cohen |first1=Joshua |title=Tracking Transportation Investments in the Infrastructure Investment and Jobs Act and Inflation Reduction Act |publisher=Environmental and Energy Study Institute |date=21 October 2024 |url=https://www.eesi.org/articles/view/tracking-transportation-investments-in-the-infrastructure-investment-and-jobs-act-and-inflation-reduction-act |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cohen2024tracking, author = {Cohen, Joshua}, title = {{Tracking Transportation Investments in the Infrastructure Investment and Jobs Act and Inflation Reduction Act}}, institution = {Environmental and Energy Study Institute}, year = {2024}, month = oct, url = {https://www.eesi.org/articles/view/tracking-transportation-investments-in-the-infrastructure-investment-and-jobs-act-and-inflation-reduction-act}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }