Are You on Track to Get Your Share of Infrastructure Investment and Jobs Act (IIJA) Funds?

Are You on Track to Get Your Share of Infrastructure Investment and Jobs Act (IIJA) Funds?

Over the next five years, the Federal government will invest $1.2 trillion to fix, maintain, and upgrade aging roads, bridges, railways and railroads, airports, water systems, broadband, cybersecurity, the electricity grid, and a lot more. What can you do now to maximize the impact IIJA can have on your local community and residents?

Get to know IIJA, so you’re ready to maximize opportunities.

Here’s an overview. To learn what to apply for, contacts, and how to get ready to rebuild, visit Building a Better American: A Guidebook to the BiPartisan Infrastructure Law for State, Local, Tribal and Territorial Governments and Other Partners (it was created to ensure all communities know how to qualify for funding, no matter their size or politics). For insights on how to make the most of IIJA locally, The New York State Conference of Mayors website has a number of resources to help you maximize IIJA benefits locally. You may also want to review A Federal Investment Guide for Local Leaders, created by Accelerator for America, the United States Conference of Mayors, and Drexel University.

You’ll also want to stay up-to-date on what’s happening in New York by following Governor Kathy Hochul and connecting with your congressional representatives. Governors are encouraged to appoint staff to manage the flow of funds; get input from Tribal leaders, county officials, civil rights and territorial leaders; identify how American Rescue Plan (ARP) funds can help maximize IIJA funds (i.e., use ARP funding to train workers to build the infrastructure; rehire public sector workers to manage funds; and start water, sewer and broadband projects to complement IIJA investments); contact the State Department of Transportation for highway and bridge formula funding; and identify priorities for competitive grants.

In addition, consider creating or updating a capital needs assessment plan to identify and prioritize potential projects for IIJA funding. For example, look at potential projects to fix, maintain, and upgrade roads, bridges, rails, and airports. Start mapping and taking an inventory of lead pipes that are part of your water delivery system. Identify gaps in broadband and opportunities to install electrical vehicle chargers. Evaluate environmental resilience and remediation plans.

Concurrently, you may want to create or update your own operation’s infrastructure needs assessment. Do you have a streamlined bidding and project management system? What about the systems and capacity to manage, track, and report on funds to meet compliance requirements (and be prepared should an audit be required)? Are there processes you should move online (for example, permit applications)? Is your cybersecurity ready to protect more data and handle more traffic?

There’s also talent to consider. With the great resignation underway, employers are challenged to create work environments and employment deals that help attract, engage and retain valued talent. Do you anticipate having to increase staff to support extra demands or new capabilities needed as a result of the IIJA? Now is the time to identify staffing needs and get recruiting activities underway.

While you may not be ready for any groundbreaking ceremonies, there is still plenty to do. Take advantage of the time you have now to prepare the plans, infrastructure, systems, and staff you need to maximize the difference IIJA can make in your community for years to come.

Remember, your partners at RBT CPAs are available to help you maximize Infrastructure Law opportunities from accounting, tax, and auditing perspectives. Find out how – contact us today.

Prepare for the Infrastructure Construction Boom

Prepare for the Infrastructure Construction Boom

Over the next five years, the Federal government will invest $1.2 trillion to overhaul and upgrade aging roads, bridges, railways and railroads, airports, water systems, broadband, the electricity grid, and a lot more. What can you do now to prepare to ensure you and your firm are ready to take advantage of this once-in-a-lifetime building opportunity?

Get Acquainted with the New Law

What’s included in the Infrastructure Law and how will that impact New York State and the Hudson Valley? Gain insights from our last article, “Hudson Valley Construction: Get Ready to Get Building.” [LINK]  You’ll want to pay attention because over $65 billion is already heading out the door so states and local governments can begin driving progress this year.  In 2022:

  • S. Department of Transportation (USDOT)/Federal Highway Administration (FHWA) apportioned $52 billion to states for road and bridge repairs;
  • Environmental Protection Agency (EPA) outlined $7.4 billion for states to spend on water infrastructure and to replace lead pipes;
  • USDOT/Federal Aviation Administration (FAA) announced $3 billion to modernize 3,075 airports nationwide;
  • EPA announced $1 billion in funding to clean up 49 hazardous Superfund sites in 24 states;
  • USDOT awarded $230 million in Port Infrastructure Development Program Grants to modernize more than 30 port sites nationwide; and
  • Each state can apply for $100 million in grants for highspeed internet, as well as orphan wells and mine remediation.

Keep an Eye on the Governor’s Press Room

Governors are being encouraged to prepare by appointing staff to manage the flow of funds to each state; consulting with Tribal leaders, county officials, civil rights and territorial leaders for input; identifying how American Rescue Plan (ARP) funds can help states prepare to maximize Infrastructure Law funds (i.e., use ARP funding to train workers to build the infrastructure; rehire public sector workers to manage funds; and start water, sewer and broadband projects to complement infrastructure law investments); contacting the State Department of Transportation for information on accessing highway and bridge formula funding; and identifying priorities suited for competitive grand funding programs.

So, staying in the know about what’s going on in Albany will also give you some insight on where to focus your efforts. A good place to start may be with daily visits to Governor Hochul’s online press room, where you can learn about new funds and plans as soon as they become available. (Case and point: Today, as this article was being written, a press release was issued announcing $76.4 million in funding for 38 projects to renew and modernize New York’s freight rail infrastructure.)

Take a Glimpse at the White House’s Guidebook

On January 31, the White House issued a guidebook at build.gov to help constituents learn what to apply for, contacts, and how to get ready to rebuild. The White House says the goal of the guidebook released Monday is to ensure that all communities have the details on how to qualify for funding, no matter their size or politics. Don’t be fooled by the 465 pages – it’s very user-friendly:

  • For each major category, there’s a funding overview, action items to get ready, and resources for information and assistance.
  • For each program within a category, there’s a one-page summary with the funding amount, period of availability, funding mechanism, whether it’s new, recipient description, eligible uses, and next milestone.
  • A data file is also available to simplify sorting programs by agency, funding amount, eligibility, and more.
  • Updates on deadlines and details will be issued in future versions of the guidebook.

In turn, the White House is encouraging regions and local governments to develop their own guides to help every community learn about and access funds. This is something you’ll want to keep on your radar.

Prepare, Plan and Get Ready to Bid

For those in the construction industry, it’s a good time to become acquainted with the White House guidebook; raise your hand and let government representatives know if there are particular areas of interest to you; examine staffing and training needs for your organization; consider whether you should be partnering with other firms; and prepare for all things accounting-, tax- and audit-related that may arise. Your partners at RBT CPAs are available to help you chart your financial course so you can maximize Infrastructure Law opportunities. Find out how – contact us today.

Sources: Build.Gov, Times Union, National Law Review, Forbes, ThomasNet, News 12, Brookings.Edu

Unsure About Reshore? Consider These Trends

Unsure About Reshore? Consider These Trends

If you’re thinking the whole reshore discussion may have been a knee jerk reaction to supply chain issues immediately following the start of COVID, think again.

While you’ll find some sources still questioning whether reshoring is the right move for U.S. manufacturing over the long-term – especially because of our shrinking talent pool and high wages (as compared to some other countries), most of the data and discussion continues to show reshoring picking up momentum in the U.S., including New York.

Right after the start of COVID in 2020, offshoring’s drawbacks became evident – the U.S. had a hard time securing personal protective equipment and ventilators. The supply chain model had a major issue: there were no contingencies for a major issue like a pandemic. A bigger, brighter spotlight highlighted one possible solution: reshoring.

Reshoring is when an organization brings manufacturing and related services back to the U.S. from overseas. (This is a complete 180 from the 1970s, when companies sent U.S. manufacturing offshore in droves to reduce costs and drive profits.) It impacts numerous industries: automotive, aerospace, chemicals, communications, IT hardware, medical devices, pharmaceuticals, semiconductors, and more.

According to the nonprofit Reshoring Initiative, 2021 was on track to show a 38% increase in U.S. reshoring jobs over prior year.  What’s more, more than 1,800 companies reported new reshoring and foreign direct investment (FDI) for the year.

The Future of Commerce report, a commissioned study conducted by Forrester Consulting for Shopify, show manufacturing delays are among the top three supply chain concerns brands expect to deal with in the coming year. So, no one’s expecting the discussion to go away; in fact, it will likely intensify.

In New York (NY), a 2021 survey conducted by the Center for Economic Growth (CEG) and Siena College Research Institute (SCRI) found that 44% of manufacturers in the state are planning to or have already started to reshore supply chains or production operations; the percentage jumps to 59% among Downstate manufacturers (in NYC, Long Island and mid-Hudson).

What about concerns related to talent costs and availability?

They’re legit. We have a shrinking labor pool. There are not enough high-tech workers. And our wages are higher than those of many other countries. Yet, it doesn’t seem to be a dealbreaker.

Overall, the advantages of reshoring – from having a smaller environmental footprint, faster response times, and greater control over the process and products to workforce development and community development and increased ability to innovate and differentiate – seem to outweigh potential hiring and pay challenges. There are also a growing number of solutions to address the skills gap, from building talent pipelines in partnership with local schools to  automation, AI, cloud computing and more. In fact, high-tech solutions not only help businesses work more efficiently, but also create the high-tech environment that attracts top talent with good jobs.

So, where to next? Here are some options:

  • Stress test to identify supply chain vulnerabilities and alternatives.
  • Take advantage of free resources specifically designed to help manufacturing companies in New York.
  • Stay in the know with information and tools to help you make smart decisions.
  • Reach out to local colleges and universities to explore developing talent pipelines.
  • Watch for legislative changes that can impact funding (i.e., the CHIP Act).

Of course, RBT CPAs is always here to help you with everything accounting- and tax-related. Give us a call.