The American Society of Civil Engineers elevated the nation’s infrastructure grade from C- to C in its 2025 Report Card, marking the first overall improvement since the assessment began in 1998. However, the modest gains mask persistent funding shortfalls that private infrastructure firms including American Infrastructure Partners are working to help address through targeted capital deployment aligned with local needs.
Roads received a D+ grade despite $591 billion in federal investment since late 2021 through the Infrastructure Investment and Jobs Act. The ASCE analysis reveals a $684 billion funding gap for roads over the next decade, with 39% of major thoroughfares remaining in poor or mediocre condition. Driving on deteriorated and congested roads costs the average driver over $1,400 per year in vehicle operating costs and lost time.
“Our roads and bridges are crumbling after decades of massive use but financial neglect,” wrote Bob Hellman, CEO of American Infrastructure Partners, in a recent op-ed. “The federal government is not positioned to address these challenges alone.”
Federal Investment and Infrastructure Progress
ASCE’s 2025 infrastructure assessment does show some measurable improvements across multiple categories. Eight of 18 assessed infrastructure sectors received grade increases, with many categories escaping the chronically low D- and D ratings that persisted for years. The Infrastructure Investment and Jobs Act’s $1.2 trillion authorization, combined with the Inflation Reduction Act’s provisions, is expected to contribute $580 billion in new infrastructure funding between 2022 and 2026.
But despite these federal commitments, the ASCE study identifies a $3.7 trillion investment gap across all infrastructure categories through 2033 if current funding levels continue. Road infrastructure represents the largest single component of this shortfall, requiring sustained investment beyond current appropriation levels to achieve meaningful condition improvements.
The report evaluated infrastructure across eight criteria including capacity, condition, funding, future needs, operation and maintenance, public safety, resilience, and innovation. Roads scored particularly poorly on funding adequacy and future capacity requirements, reflecting both deferred maintenance backlogs and increasing demands from population growth and economic expansion.
Can Private Capital Help Address Transportation Funding Gaps?
Hellman, whose firm has supported infrastructure development projects across the U.S. using private capital, has noted that traditional funding mechanisms alone may not be sufficient to meet the scale of national infrastructure needs.
“The scale of the problem is simply too big for the government to handle on its own,” he said.
Private infrastructure funds now manage more than $4.5 trillion globally, representing potential sources of capital for projects that have difficulty accessing adequate public financing. Infrastructure fund managers operate within this landscape through specialized platform companies that concentrate on specific infrastructure categories—including transportation assets through United Bridge Partners (UBP), a platform focused on the financing, development, and long-term operations of bridge infrastructure.
This approach differs from more generalist infrastructure investment strategies by building dedicated expertise and operational resources tailored to specific asset classes. This specialization may help improve project evaluation and delivery when paired with strong public sector coordination.
UBP’s Houbolt Road Extension in Joliet, Illinois, created new Interstate 80 access and is estimated to reduce truck idle time by 20,540 hours annually while cutting CO₂ emissions by 240.5 metric tons per year. Similarly, the Jordan Bridge in Chesapeake, Virginia, was completed at a cost of $143 million, more than $50 million below the state’s original estimate, and enabled the city to invest $4.3 million in the adjacent 12.6-acre Elizabeth River Park.
UBP has completed four major bridge projects valued at over $100 million each within four years. According to industry benchmarks, this represents a notable portion of large-scale bridge activity in that time frame.
Hellman has highlighted the importance of experience and specialization when it comes to infrastructure execution:
“Private infrastructure brings together capital partners and technical teams with the experience to deliver complex projects while working collaboratively with public entities,” he said.
Long-Term Investment Requirements and Policy Implications
Government infrastructure projects frequently exceed initial budgets and timelines. Boston’s Big Dig ultimately cost 600% more than originally estimated, while California’s high-speed rail project has seen projected costs rise by at least 300%. These escalations reflect the complexity and scale of modern infrastructure delivery, particularly when resources are constrained.
The ASCE’s C grade signals some incremental progress, but still falls short of the B grade that would indicate infrastructure systems are in good repair. Reaching that threshold is projected to require $9.1 trillion in total investment by 2033. With approximately $5.4 trillion accounted for by current funding levels, a $3.7 trillion gap remains.
Hellman has voiced support for policy updates that encourage more public-private partnerships at the local level.
“Infrastructure is a local problem,” he says, noting that around 80% of infrastructure assets are owned and managed by local authorities.
The ASCE report echoes this, recommending that “federal, state, and local governments should expand the use of public–private partnerships for appropriate projects and find opportunities to leverage additional financing tools.” These models can enable private sector participation while preserving public oversight and ownership.
Federal policy frameworks are increasingly recognizing private capital’s potential role in supporting infrastructure goals. The Infrastructure Investment and Jobs Act expanded financing tools for private investors, including doubling the nationwide cap on tax-exempt highway and surface freight facility bonds from $15 billion to $30 billion.
The legislation also authorized $250 million annually through 2026 for the TIFIA credit assistance program, and introduced a new $2.1 billion Carbon Infrastructure Finance and Innovation Act to support CO₂-related infrastructure. These tools may enable private investment while lowering overall project costs through favorable financing terms.
For Hellman, improving national infrastructure grades will require long-term coordination between public and private sectors, combining public oversight with access to external resources and specialized project experience.
“As private infrastructure investors, those of us in the business need to do more than react to opportunities to acquire an asset,” he said. “We need to be responding to community problems. Our role as investors must include listening to community needs and partnering where we can support a solution.”
The approach taken by infrastructure investment organizations emphasizes building dedicated expertise within specific sectors. Private investment firms with concentrated focus areas may be better positioned to work alongside public entities in addressing the nation’s infrastructure challenges. Investment professionals in this space continue to develop models that align private capital with community infrastructure needs.