Governors Evaluated Infrastructure Funding Alternatives
State officials are exploring private-sector partnerships to mitigate federal funding gaps in infrastructure projects.
Updated on Oct. 1, 2026 in Remote Work
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Infrastructure leaders from 20 states met in New York City to discuss project financing strategies following the expiration of federal funding under the Infrastructure Investment and Jobs Act on September 30, 2026. The meeting centered on maintaining construction momentum amid ongoing uncertainty regarding federal budget cycles.
Why it matters
With federal infrastructure funds expired and a temporary funding resolution set to lapse in December 2026, state officials are shifting focus toward alternative procurement models to avoid project delays. These efforts aim to manage high construction costs while securing private capital to fill gaps left by federal budget volatility.
Leaders from 20 states and territories attended the workshop, which follows the September 30, 2026, expiration of funds under the Infrastructure Investment and Jobs Act. The NGA hosts these sessions biannually to address federal funding uncertainty and high construction costs.
The players
National Governors Association
An organization representing state governors that facilitates policy development, federal advocacy, and coordination of infrastructure investment strategies.
The details
State infrastructure officials are now evaluating alternative delivery mechanisms to maintain project timelines. These include design-build solutions and expanded public-private partnerships designed to leverage private capital. By moving away from a reliance on federal grants, states are attempting to stabilize operating budgets against the backdrop of an expiring federal continuing resolution in December 2026.
Timeline
May 2026: The NGA held its spring Infrastructure Coordinators Workshop.
September 30, 2026: Federal infrastructure funding under the IIJA expired.
October 2026: The NGA hosted the fall Infrastructure Coordinators Workshop.
December 2026: The current federal continuing funding resolution expires.
Market Landscape
This strategy shift follows the expiration of the Infrastructure Investment and Jobs Act and reflects a broader move toward diversified funding models in capital projects. It follows a pattern of states seeking operational autonomy as federal fiscal support becomes increasingly intermittent.
Operators in the construction and engineering sectors should anticipate a shift in procurement requirements as states favor design-build models and public-private partnerships. Review upcoming state-level RFPs for alternative financing provisions prior to the December 2026 federal funding cliff.
The takeaway
States are actively decoupling infrastructure project timelines from federal funding cycles to avoid stagnation. Monitor your state's upcoming capital project solicitations for new public-private partnership requirements that may alter bidding and contract structures.
Further reading
For broader trends in operational flexibility, explore the Remote Work section.
Live Poll
Do you support using private partnerships to fund and manage local infrastructure projects?
