The ongoing changes surrounding the U.S.’s position on infrastructure between the outgoing Biden administration and the incoming Trump administration is creating policy uncertainty for investors and companies in the infrastructure space. This instability may raise concerns among stakeholders that the U.S. is not an ideal place to invest because of the policy inconsistency and increases the likelihood of disputes arising from existing and potential foreign investment projects.
Changes to Bipartisan Infrastructure Law Implementation
Possible changes by the Trump administration to the allocation of funds for transportation, energy, broadband, and other projects under the Infrastructure Investment and Jobs Act (IIJA), also known as the bipartisan infrastructure law, is contributing to uncertainty for investors.[1]
The Trump administration may have a different approach to implementing the IIJA, which passed with bipartisan support but during the Biden administration.[2] The IIJA is set to continue under President-elect Trump, who will oversee the law’s final two years. The Trump administration will have substantial influence over the allocation of the remaining $294 billion in IIJA funds, including $87.2 billion in competitive grants.[3] This transition presents opportunities for the new administration to shape the law’s impact, particularly in areas of focus different from that of the Biden administration.
Crowell & Moring LLP
1/17/25