Report Evaluates Equity in Federal Infrastructure Grants

A new report from the Urban Institute assesses the gap between the equity goals of the Biden administration and the way federal funds from the Infrastructure Investment and Jobs Act (IIJA) and other infrastructure programs are being distributed, writes Jared Brey in Governing.

“While the term ‘equity’ is used in lots of ways, a key question for infrastructure funding is whether it reaches places that need it the most. That requires understanding inequitable patterns of spending in the past, which helped create racial and class inequities in access to clean water, fast Internet, safe transportation options and affordable housing,” Brey explains.

“The researchers found that formula funding programs, which provide the lion’s share of transportation funding to states, are likely to reinforce existing patterns: Most transit funding, for example, goes to places that already have more transit service, rather than to car-centric places with few alternative travel modes. Competitive grants are often more targeted to areas with higher shares of people of color, the report found.” The report suggests reforming some of the major federal formula funding programs that are out of step with today’s funding needs.

Unsurprisingly, “communities with less government staff capacity to apply for grants are substantially less likely to receive funding,” signaling a need for more resources devoted to helping underresourced local governments apply for grants. “The federal government should play a role in supporting local governments with low staff capacity, the report says.”