As Bridge Funding Issues Continue, American Infrastructure Partners Proposes Private Finance Solution

1. As Bridge Funding Issues Continue, American Infrastructure Partners Proposes Private Finance Solution

According to a 2024 analysis by the American Road and Transportation Builders Association, over 221,000 U.S. bridges require major repair or replacement. America’s mounting bridge crisis is daunting in scale, and private infrastructure funding is emerging as a solution, says Bob Hellman, CEO of American Infrastructure Partners. In a recent op-ed, Hellman argued that private capital could help address the $400 billion needed for critical bridge repairs across the nation.

“It’s a whispered truth of American life: Our roads and bridges are crumbling after decades of massive use but financial neglect,” Hellman said. “The scale of the problem is simply too big for the government to handle on its own.”

America’s Bridge Crisis

According to the ARTBA report, the number of U.S. bridges requiring repair would span over 6,100 miles if placed end-to-end — equivalent to every mile of urban and rural Interstate in California, Florida, and Illinois combined.

While the $1.2 trillion Infrastructure Investment and Jobs Actsigned into law in 2021 provided unprecedented federal funding, including $40 billion specifically for bridges over five years, the act addresses only a fraction of the total need. When distributed across the country, this amounts to approximately $80 million per state per year over six years, says Hellman. It’s barely enough to cover one major bridge project per state, especially considering recent inflation’s impact on construction materials like concrete and steel, as well as rising skilled labor costs.

ARTBA estimates the total cost of necessary repairs at over $400 billion, ten times greater than the amount allocated by the most recent legislation. Time is an issue as well. At current repair rates, it would take until 2071 to address all necessary bridge repairs nationwide, according to Federal Highway Administration data.

And more bridges will fall into disrepair during that time as they continue to be used. The FHA reports that approximately 178 million trips occur daily across structurally deficient bridges in the U.S. Bridges newly rated in poor condition in 2024 include: I-90 over Canal to Stewart Streets, Illinois; Interstate 680 over Monument Boulevard, California; I-93 over Mystic Valley Parkway, Massachusetts; I-95 North and Southbound over Thurbers Avenue, Rhode Island; and IH-35 over Grand Avenue, Texas.

There is no doubt that the act has made a dent in the problem — bridges in poor condition account for 6.8% of the 2024 U.S. bridge inventory, down from 7.3% in 2020. But the question is whether this progress is enough given the scale, significance, and ongoing nature of bridge deterioration.

American Infrastructure Partners’ Projects

Recent projects by United Bridge Partners, an affiliate of American Infrastructure Partners, demonstrate how private funding can accelerate crucial infrastructure improvements while potentially saving taxpayer dollars.

When Chesapeake, Virginia, faced an estimated $200 million replacement cost for the deteriorating Jordan Bridge in 2008, the city initially opted to decommission the structure, unable to meet even the $17 million repair cost. United Bridge Partners stepped in with a private financing solution, completing the project for $143 million — nearly 30% less than the state’s estimate — while simultaneously catalyzing community development through the revitalization of Elizabeth River Park.

In Illinois, UBP’s Houbolt Road Extension project not only improved transportation efficiency and directed truck routes away from residential areas, but also delivered significant environmental benefits, reducing annual CO2 emissions by 240.5 metric tons and cutting truck idle time by approximately 20,540 hours per year.

Why Private Capital Works

Hellman proposes that private infrastructure funds, which currently manage more than $4.5 trillion, can provide both capital and expertise for infrastructure projects.

“Private infrastructure brings together deep-pocketed investors and those with the know-how to build projects on time and on budget,” Hellman said. He contrasts this with traditional government-led projects, citing examples like Boston’s Big Dig, which ended up 600% over budget, and California’s High-Speed Rail, which is already at least 300% over budget.

Meanwhile, the success of AIP’s projects suggests that private infrastructure funding can deliver multiple benefits. In terms of cost efficiency, the Jordan Bridge replacement came in under traditional estimates while including additional community improvements. The Houbolt Road Extension project demonstrates significant environmental benefits through reduced emissions.

A key advantage of private infrastructure investment is specialized expertise. While local governments may tackle major infrastructure projects only occasionally, private firms develop deep experience through repeated projects. AIP’s bridge division, for instance, has completed four bridges valued at over $100 million each in the past four years — compared to just 10 such projects completed by all other entities in the United States combined during the same period.

“We build bridges all the time. We know how to deliver on time, on budget,” says Hellman. “We built $600 million of bridges over the last four years in the worst environment in my career with a 1% cost overrun.”

‘Waiting for the Next Bridge Collapse’

As state and federal governments struggle to address the infrastructure funding gap, private capital partnerships offer a proven alternative. While the infrastructure act has allocated significant funding for bridge projects, the $319 billion required for repairs nationwide far exceeds available public resources.