In America, there are 120,000 bridges — 20% of all bridges in the country — classified as structurally deficient. The 2021 infrastructure bill, celebrated for its $1.2 trillion price tag, provides just $80 million per state annually for bridge repair if spread out equitably, according to Bob Hellman, CEO of American Infrastructure Partners — barely enough to cover the cost of one reconstruction project per state.
“Many believe a substantial federal rescue is on the horizon,” says Hellman, whose firm invests in infrastructure projects. “However, with $34 trillion in national debt and mounting global concerns about the U.S. economy’s stability, it’s clear the federal government alone can’t bridge this gap. We’re not going to suddenly find $20 trillion in the Treasury to fix the problem.”
The True Scale of America’s Infrastructure Challenge
The infrastructure crisis extends far beyond bridges. From aging postal facilities to outdated school buildings with asbestos ceiling tiles, America’s infrastructure needs have outpaced government funding capabilities.
The American Society of Civil Engineers’ recent analysis quantifies this gap: Even maintaining current federal spending levels, the U.S. faces a $5.6 trillion infrastructure funding shortfall through 2043. If spending reverts to pre-2022 levels, that gap balloons to $7.7 trillion.
The situation deteriorated further when recent inflation consumed approximately 25% of the 2021 infrastructure bill’s spending power, particularly affecting crucial materials like cement and steel. ASCE projects these deficiencies will cost the average American household $40,100 in lost income over the next 20 years.
And in many communities, essential infrastructure has reached a critical breaking point. Hellman points to alarming examples across the country: “I challenge you to name one category of infrastructure in which we are a leader in the world in terms of the modern nature of our assets.”
Private Capital Investment
Private infrastructure funds now manage more than $4.5 trillion globally, a number that Hellman argues could help provide a solution to America’s infrastructure funding gap. These funds, backed by pension funds, university endowments, and private investors, offer a proven model for infrastructure development that has succeeded internationally but faced resistance in the U.S.
The private funding approach differs fundamentally from traditional government projects in both execution and efficiency. Private infrastructure projects typically follow one of two models, says Hellman. The first involves direct ownership: Private capital purchases existing infrastructure, rehabilitates it, and maintains ownership while generating returns through user fees. The second uses public-private partnerships, where private entities finance and manage infrastructure under long-term contracts, eventually returning the assets to public ownership.
Government-led infrastructure projects have a troubling track record of cost overruns. Boston’s Big Dig exceeded its budget by 600%, while California’s high-speed rail project is already 300% over budget before completion. The Gordie Howe Bridge connecting the U.S. and Canada has seen costs spiral 127% above initial estimates. These inefficiencies contribute to a devastating economic impact: ASCE projects that infrastructure deficiencies could lead to approximately $12.8 trillion in lost economic output by 2043, and manufacturing sectors alone face potential losses exceeding $4.2 trillion.
Community Involvement
Private infrastructure firms are developing creative solutions to traditional funding challenges. The infrastructure crisis won’t resolve itself. Baltimore’s Francis Scott Key Bridge collapse in 2024 highlighted the vulnerability of aging infrastructure, but public attention quickly waned. “It took four days for that disaster to go from the front page to page 14 in the newspapers,” Hellman notes. “It went from a national crisis to now the only community that actually pays attention to it is Baltimore.”
The solution likely requires a shift in how Americans think about infrastructure funding. Private capital can offer expertise, efficiency, and funding capacity that government agencies often lack. Most importantly, it provides a practical path forward while public coffers remain strained.
For communities facing critical infrastructure needs, the choice increasingly isn’t between public or private funding — it’s between private funding or no funding at all. In Hellman’s view, the key to progress lies in helping local leaders understand their options.
