Every $1 increase in federal highway, bridge, and public transit investment under the Infrastructure Investment & Jobs Act (IIJA) will generate as much as $3.60 in economic activity, according to a new analysis from IHS Markit.
According to the American Road & Transportation Builders Association (ARTBA), who commissioned the analysis, IHS Markit is a global information leader with expertise spanning numerous industries, including leading positions in finance, energy and transportation.
The major economic benefits documented in the study—according to ARTBA—include:
- The combined $153.7 billion in new highway, bridge, and public transit investment under the IIJA would add $488 billion to U.S. GDP by 2027.
- As federal highway and public transit investment spurs economic growth, the additional funding from the IIJA supports more than 250,000 new jobs by 2025. Over half of these positions will be outside of the construction sector.
- More economic activity means federal, state, and local tax revenues will increase more than $160 billion. These revenues can be reinvested throughout local communities.
- New jobs and higher wages benefit American households—with personal disposable income increasing by $69 billion by 2027, or more than $500 per household.
The report quantifies the state-level increases in GDP, disposable income, consumer spending, and state and local tax receipts from the additional highway, bridge, and public transit investment.
SOURCE: American Road & Transportation Builders Association