Inflation Means Fewer Projects Under Biden Infrastructure Plan

The government can buy fewer roads, bridges, and tunnels today than it could seven months ago when President Joe Biden signed the $1 trillion infrastructure law.

Historic inflation and labor shortages now threaten to hamstring one of the administration’s signature successes, which lawmakers were hoping to tout in reelection campaigns.

States across the country are seeing project bids come in as much as 30% above their original expectations, as contractors complain about supply problems, spiking material costs, and a dearth of workers. The law (Public Law 117-58) sends billions to be spent on surface transportation each year over ...