Publications

- June 2009 Vol. 2 No. 2

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Economic Stimulus: Potential Upside for Private Infrastructure Markets

by Brian Sedlak, Susanna Fodor and Michelle Miller

Although the primary purpose of both the American Recovery and Reinvestment Act of 2009 (the Act) and the U.S. Department of the Treasury’s new Financial Stability Plan is to provide stimulus to the lagging economy as a whole, both plans promote funding construction activity and infrastructure development as part of the solution. The details of how these programs will be implemented are still unclear, but both have the potential to revitalize U.S. infrastructure markets.

The United States is in dire need of a substantial infusion of resources to modernize its existing infrastructure. A conservative estimate sets the country’s infrastructure needs at $87 billion per year, while more aggressive estimates reach almost $150 billion annually. During the next five years, the country’s infrastructure will require anywhere from $275 billion to $740 billion spent in areas including: the interstate highway system, 30 percent of which is estimated to require renovation and expansi

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