Infrastructure outlook: Federal aid drives growth, costs pose risk

Public infrastructure will glide into 2023 supported by massive federal aid, but the rising cost of projects could trip up the national rebuilding plan. Rising material prices, labor shortages, high interest rates and slowing economic growth may make capital financing more expensive. And that may prompt cautious local and state leaders, who fund 75% of the nation's infrastructure, to delay, cancel or scale back projects.?

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Municipal bond market insiders reflect on a year they say was challenging and a bit unexpected yet provided windows of opportunity and optimism for the coming year. "Much of what drove 2022 was a gigantic surprise," said Tom Kozlik, head of municipal research and analytics at HilltopSecurities Inc.?

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?The Government Accountability Office ruled that a controversial Federal Highway Administration memo outlining how states should spend their Infrastructure Investment and Jobs Act money ventures into the realm of policy-making and is thus subject to Congressional review, setting the stage for challenges from Republicans who will control the House next year.

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If you missed any of our ESG Week coverage, make sure to check our ESG special section which has all the articles, the podcast and a taped version of the Leaders event.

Ron Galperin, after finishing his second and final term as Los Angeles city controller, says he hasn't decided what's next. "I am very excited about the future of Los Angeles, not just in spite of our challenges, but because of our challenges," Galperin said. Successor Kenneth Mejia was sworn in Dec. 12.

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Registration is open for The Bond Buyer’s National Outlook conference Feb. 2 in New York.?

Municipals were weaker in spots Thursday as outflows from mutual funds lessened. U.S. Treasuries were firmer five years and out and equities rallied.

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Watch the acceptance speeches and look at some of the photos from our Deal of the Year event this month in New York City.?

The Army Corps of Engineers approved a wetlands work permit for Rivian’s planned 16-million-foot battery and electric vehicle production plant in Georgia. A state financing incentive package is still held up in court after opposition from residents who sued to block validation of up to $15 billion of revenue bonds that are part of the state’s plan to make the Rivian parcel exempt from property taxes. But approval of the permit clears the way for wider construction to begin.

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