US highway and bridge contract awards hit $121bn in 2024

That is according to new figures released by the American Road & Transportation Builders Association’s (ARTBA) economics team.

The figure marked a significant increase on the $114.6 billion worth of contracts awarded in 2023 and the $83 billion awarded in 2021.

ARTBA said that the growth has been driven by a combination of federal, state, and local investments.

The top markets in 2024 were Texas, California, Florida, New York and Illinois.

States that saw major annual percentage gains of 33% or more included Rhode Island, New Hampshire, Maryland, North Carolina, Washington, South Carolina, Vermont, Florida, Arizona and Montana.

ARTBA pointed out that state and local government contract awards are a leading indicator of future construction activity expected to break ground within 30 to 60 days. And depending on the scale of a project, construction work can take place over a multi-year period.

The figures suggest that construction activity on road and bridge projects in the US will remain healthy for some time to come.

A question mark hovers over the pace of future awards and progress on existing projects, however, after President Trump ordered federal agencies to stop disbursing Infrastructure Investment and Jobs Act (IIJA), and Inflation Reduction Act (IRA) funding amid a 90-day review.

Washington DC-based law firm Crowell & Moring warned that Trump’s executive order on ‘Unleashing American Energy’ had “significant implications for the implementation of the IIJA and IRA”.

The executive order’s policy objectives include increasing energy exploration and production on federal lands and waters.

But Crowell & Moring said, “The Executive Order’s directive to pause disbursements and review funding processes has significant implications for the implementation of the IIJA and IRA. Whether the pause is temporary or becomes permanent, this action potentially could halt billions of dollars in obligated funding for infrastructure projects that already are underway, including those already under construction.”

It added that it could take months to understand the precise implications of the Executive Order may not be fully understood for months, and this uncertainty alone is likely to disrupt infrastructure projects and give rise to claims. Even once the review and recommendations prescribed by the Executive Order are complete, there no doubt will be winners and losers in the allocation of the infrastructure money.”