Highway Subs Face Phase Risk as $300.5B in IIJA Work Meets Dec. 11 Deadline
States have committed $300.5 billion to about 129,600 highway and bridge projects through August, but later phases face funding risk as Congress approaches a Dec. 11 deadline, ENR reports.
Market Impact
The figures come from the American Road & Transportation Builders Association (ARTBA). The money was committed under the expired Infrastructure Investment and Jobs Act (IIJA) and keeps work moving. Commitments do not move to construction at the same pace everywhere. ARTBA found nearly 80% of IIJA-supported project value in Texas was geared toward construction at the law’s midpoint, versus less than 45% in Oregon, where more funding went to planning and design.
Procurement is already feeling it. The Associated General Contractors of America (AGC) told ENR that chapters report some state DOTs began cutting bid lettings over the summer. AGC declined to name the states. AGC also cautioned that the $36.8 billion in fiscal 2027 transportation funding that Senate Commerce Committee Democrats say was not renewed is not money pulled from existing projects. The risk is that the next generation of projects has less access to the Bridge Formula Program, Bridge Investment Program and Mega program.
JP Villamizar of GISI Consulting Group and Hill International said later phases that depend on future federal money are more vulnerable. Agencies may re-scope projects, try value engineering, seek local matching funds or change delivery and financing structures. Pew Charitable Trusts estimates road-and-bridge funding could fall 13% if Congress keeps traditional Highway Trust Fund programs without replacing IIJA advance appropriations.
The current temporary extension keeps core Highway Trust Fund programs running until Dec. 11. The House bipartisan BUILD America 250 Act cleared committee 62-2 in May but has not had a floor vote. The Senate has not produced a counterpart. Democrats take control of Congress in January.
What It Means for Subcontractors
- Review multi-phase contracts before Dec. 11. Check payment terms, notice-to-proceed language and phase-release conditions on large highway and bridge jobs. ENR’s reporting indicates exposure depends on whether financing is secured for later phases, so read those clauses with that risk in mind.
- Expect re-scoping and value engineering on unfunded phases. Villamizar says agencies may cut scope to lower cost. Earthwork, structures and paving subs should confirm how scope reductions and schedule shifts are handled in their change-order terms.
- Price schedule risk into new bids. Villamizar notes delays and scope changes push contractors to build extra risk into pricing. Where bid lettings are shrinking, quote with that in mind.
- Decide on crew allocation now. Firms with multiyear programs must choose between holding scarce staff on uncertain jobs and moving them to funded work. Check which of your jobs have secured phase funding and which do not.
- Plan around long-lead items. Villamizar cites three- to four-year queues for some long-lead procurement. Subs supplying bridge components should confirm delivery commitments on delayed phases.
- Look at state mix. ARTBA’s comparison shows Texas leaning toward construction-ready funding, while Oregon steered more toward planning and design. Design-side and early-stage work may carry different exposure than construction packages.
- Track Dec. 11 and January. After the Dec. 11 expiration, watch whether Congress passes another temporary measure. In January, watch whether House Transportation and Infrastructure Committee Democrats move BUILD America 250 forward.
