Market Intelligence

2026 Infrastructure Bill Forecast

Tracking the $1.2 Trillion flow from Federal Treasury to your local job site.

Last Updated: January 27, 2026
M

Marcus Thorne

Chief Product Officer

Quick Summary

As we enter 2026, the Infrastructure Investment and Jobs Act (IIJA) is reaching peak disbursement. While 2022-2024 focused on planning and design, 2026 is the year of "Shovels in the Ground." The largest allocations are in Road/Bridge repair ($110B) and Water Infrastructure ($55B). Contractors should focus on State DOT lettings, as 90% of this funding is distributed via state formula grants rather than direct federal contracts.

Key Facts

  • IIJA disbursement is now concentrated in active construction execution.
  • Road/bridge and water infrastructure remain top funding categories.
  • Most funding reaches contractors through state and local channels.

Decision Checklist

  • Prioritize state DOT and agency letting calendars.
  • Align trade focus to funded project classes.
  • Track award cadence by target region and agency.

Source context: IIJA allocation trends and state-level infrastructure procurement patterns.

2026 Infrastructure Allocations

Federal funding by state (IIJA + IRA)

Total Budget
$1.2T
Active Projects
42,105
AK
ME
VT
NH
MA
WA
ID
MT
ND
MN
WI
MI
NY
CT
RI
OR
NV
WY
SD
IA
IL
IN
OH
PA
NJ
CA
UT
CO
NE
MO
KY
WV
VA
MD
DE
AZ
NM
KS
AR
TN
NC
SC
DC
OK
LA
MS
AL
GA
HI
TX
FL
State Budget
$45.2B
Major Projects
1240
YoY Growth
+12%
Data Source: WhiteHouse.gov / Build.gov (Updated Jan 2026)
View Full State Report

The "Funding Lag" is Over

There is famously a 18-24 month lag between a bill passing and a contractor seeing an RFP. That clock has run out. The Infrastructure Investment and Jobs Act (IIJA) passed in late 2021. The years 2022-2024 were spent on "NEPA Review" (Environmental Impact Statements) and Engineering Design.

2026 Outlook: We are seeing a 40% year-over-year increase in "Heavy Civil" solicitations on ConstructionBids.ai compared to 2024. The floodgates are strictly open for "Shovel Ready" projects that have cleared the permitting phase.

Where the Money Is (Top 3 Sectors)

  1. Roads & Bridges ($110B): Not just mega-highways. There is a massive allocation for "Off-System Bridges"—small county bridges that are structurally deficient. These are perfect sized contracts ($2M-$10M) for mid-size Civil GCs.
  2. Water/Wastewater ($55B): Lead pipe replacement (EPA mandates) is creating a boom for utility contractors. Every municipality is rushing to spend SRF (State Revolving Fund) grants before deadlines expire.
  3. Broadband ($65B): "Middle Mile" infrastructure contracts are flooding rural counties. This involves trenching and conduit installation—standard civil work that does not require specialized telecom expertise (the fiber can be blown later).

Winning Strategy: Watch the DOTs

Don't watch SAM.gov for these. The money flows to the State.

"Federal money, State rules."

You need to be pre-qualified with your local Department of Transportation (DOT). If you aren't on their list today, you can't bid tomorrow.