As Congress begins work on reauthorizing the nation’s surface transportation programs, county leaders across the country are sounding the alarm: without targeted reforms, counties could lose ground in access to federal infrastructure funding at a time when needs are greater than ever.
The current federal infrastructure law, the Infrastructure Investment and Jobs Act (IIJA), enacted in 2021, expires this year. That law marked a major shift by providing multi-year funding certainty and expanding discretionary grant programs that many counties used to advance critical road, bridge, and safety projects. As lawmakers draft the next reauthorization, however, key leaders in the U.S. House and Senate, along with state transportation officials, are signaling a strong desire to pivot away from discretionary grants and toward a more consolidated, state-focused formula funding approach.
While formula funding can provide predictability, this shift raises serious concerns for counties. Today, most major federal highway and bridge formula programs do not guarantee counties a meaningful share of funding—even though counties own and maintain a significant portion of the nation’s roads and bridges, and many of the most dangerous road segments in rural America. If discretionary grant programs are reduced or eliminated without fixing the formula system, counties could see their access to federal dollars shrink substantially.
During a recent briefing with the Illinois State Association of Counties (ISACo) and other state association partners, the National Association of Counties (NACo) outlined a clear advocacy strategy: if Congress moves toward formula funding, those formulas must be restructured to work better for counties. That means increasing the share of funds within existing programs, such as the Surface Transportation Block Grant Program, that are suballocated to local governments, ensuring counties have real access to bridge and safety funding, and preventing further centralization of decision-making at the state level.
Another critical issue is access. In many parts of the country, especially rural areas, counties’ ability to tap federal transportation dollars depends on whether they are part of a metropolitan or rural transportation planning organization. Where those structures don’t exist—or lack real authority—counties are often left at the mercy of state-level decisions. NACo is pushing for stronger, better-funded planning organizations with clear project selection authority, and for requirements that states work directly with county associations where planning coverage is lacking.
NACo has also drawn firm “red lines” for the upcoming bill. Counties’ overall share of funding must not decrease compared to current law. If discretionary grants are cut back, counties must gain greater access to formula funds. And any increase in formula funding only matters if counties can actually access those dollars in practice—not just on paper.
To reinforce these priorities, NACo is organizing a coalition letter with state and local government partners and encouraging state associations, including ISACo, to engage their congressional delegations. The goal is simple but urgent: ensure that the next surface transportation bill reflects the real role counties play in owning, maintaining, and improving America’s infrastructure, and provides counties with the tools and resources they need to keep residents safe and communities connected.
As draft legislation begins to emerge this spring, NACo and its partners will be watching closely and mobilizing as needed. The stakes are high, and the outcome of this debate will shape county infrastructure investment for years to come.