As local and state governments, including transportation agencies, were already grappling with ongoing supply chain disruptions for their current infrastructure projects, the historic inflation will also likely serve as a significant blow to the overall progress, funding allocation, and timely completion of these projects. Given the complexity and longer time horizon of many of these capital programs, local and state governments generally allocate set funding with an inflation factor, including the infrastructure programs funding through the federal government. However, with the current inflation numbers, the public sector may be faced with the dilemma to either scale back on the scope of these projects or find alternative funding sources.
Source: Municipalbonds
