Soaring Inflation... Biden's $1 Trillion Infrastructure Project Also Takes a Direct Hit

[Asia Economy New York=Special Correspondent Joselgina] Inflation in the United States, currently at its highest level in 41 years, has dealt a direct blow to President Joe Biden's key pledge of a $1 trillion infrastructure project. With supply chain disruptions and rising material costs compounding the issue, many projects are being delayed or scaled back.

On the 19th (local time), the Associated Press reported that soaring inflation is causing setbacks in projects under the $1.2 trillion (approximately 1,550 trillion KRW) infrastructure budget law, which President Biden struggled to pass through Congress to improve the country's aging infrastructure.

In Casper, Wyoming, a bid to build a bridge over the North Platte River and reconstruct an intersection was recently rejected. The lowest bid came in 55% higher than the amount initially estimated by the state engineer. As a result, the project was postponed as state authorities decided to seek alternative solutions. Mark Gillette, chief engineer at the Wyoming Department of Transportation, said, "We had hoped the infrastructure law would spark a boom in highway and bridge construction, but it is not going as we expected. If inflation continues at the current rate, we will have to keep postponing projects year after year."

Infrastructure projects at Des Moines International Airport in Iowa have also seen estimated costs soar from $434 million (562 billion KRW) calculated four years ago to a recent $733 million (949.2 billion KRW). Consequently, the airport decided to split the project and initially build only five gates instead of the originally planned 14.

The bridge repair project on Interstate 55 in St. Louis, Missouri, was bid at $63 million, 57% above the original budget. In this fiscal year, Missouri's highway construction costs have increased by an additional $139 million (180 billion KRW) beyond the initial budget.

This is due to persistent supply chain disruptions and soaring material prices caused by inflation. According to the Federal Reserve Bank of St. Louis, the price of asphalt and tar mixtures rose 14% in May compared to the same month last year. The price of processed steel plates used in bridge construction increased by 23%. Prices for iron pipes used in water supply also surged by about 25%. Jim Tymon of the American Association of State Highway and Transportation Officials said, "Project costs have increased by about 20% to 30%, effectively erasing the budget increases received from the federal government."

The massive spending under the infrastructure budget law has faced criticism from Republicans for fueling inflation. Republican Representative Sam Graves of the House Transportation and Infrastructure Committee pointed out, "We are borrowing money to spend more on infrastructure construction, but that money is causing inflation, which is leading to a reduction in the scale of projects."

This content was produced with the assistance of AI translation services.