“it’s not true that Washington is actually “sending the money.” Because of Congress’ longstanding inability to perform one of its most basic functions—pass a budget—significant swathes of transportation spending are stalled at 2020 levels. In November, the infrastructure bill did indeed authorize over a trillion in spending. But before all of that money can actually head out the door, there needs to be an appropriations bill in place”
“The U.S. is the sixth-most expensive country in the world to build rapid-rail transit infrastructure like the New York City subway or the Washington, D.C., metro system.
Part of the reason is just plain waste and corruption. The federal infrastructure bill has created massive incentives for rent-seeking while ballooning the municipal lobbying sector. Like contestants on a game show, states and localities are scrambling for dollars, correctly understanding that this might be the only major windfall in this area for a decade or more—again, largely due to Congress’ inability to do its job in a predictable way in concert with a chief executive who can set clear achievable policy priorities.
More than 1,000 municipal entities spent just shy of $50 million on federal lobbyists in the second half of 2021 as the infrastructure bill was finalized and passed, according to data tracked by OpenSecrets. That’s about 7 percent higher than the $46.7 million that municipal entities spent in the same period of 2020, which was hardly a dry spell given the federal pandemic spending that was already underway. That number likely underestimates the real demand, since it doesn’t capture contracts signed right at the end of the year.
In theory, no lobbyist is needed to tap into the new infrastructure money. At the end of January, Mitch Landrieu, a former mayor of New Orleans who is overseeing infrastructure spending for the Biden administration, proudly announced the existence of a 465-page guidebook that explains the different pots of money available to communities, along with a data file that is—get this—searchable!
Despite all this, there’s no reason to think the U.S. is notably worse on these measures than other developed nations. Likewise, while some of the cost is inputs, such as material and labor, they don’t explain the disparity fully. A recent study of the interstate highway system from George Washington University professor Leah Brooks and Yale University professor Zachary Liscow suggests that the X-factor is “citizen voice,” which can take the form of legitimate opposition to eminent domain, or which might be less charitably described as “not in my backyard” obstructionism and environmental regulatory foot dragging.”