It is said that the soaring inflation is eating away President Joe Biden’s hallmark $1.2 trillion infrastructure law, reducing its effectiveness as construction and material costs skyrocket.
Economists say the money approved by Congress last year for overhauling the nation’s roads and bridges is worth less today because of inflation, which has pushed construction costs higher.
“In theory, the infrastructure bill should be about delivering more value for taxpayers, families and the economy,” said David Ditch, a transportation and budget analyst at the conservative Heritage Foundation. “But inflation has eaten away at that value, meaning taxpayers are getting less benefit for all that money being spent.”
The same pocketbook issues vexing Americans and driving down Mr. Biden’s approval ratings are frustrating the infrastructure overhaul, which is the president’s biggest legislative win and one of his chief arguments for voters in November to keep Democrats in power.
State and local governments are already finding infrastructure projects running significantly over budget. In Michigan, the cost of bridge construction and repair is 40% higher this year than initially estimated by the state’s transportation department.
Much of the increase is because the raw materials needed for projects are limited as a result of the ongoing supply chain crisis.
Source: The Washington Times and agency report.
