Money to build new roads and bridges as part of Biden’s $1 trillion infrastructure project ‘evaporates’ due to inflation

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Extreme flooding in Yellowstone National Park washed out roads.ASSOCIATED PRESS

  • Inflation raised the costs of consumer goods, especially road repair materials.

  • The rising coast has “evaporated” federal funds for repairs, the Associated Press reported.

  • Supply chain backlogs and the war in Ukraine contributed to inflation.

Money set aside to build new roads and bridges as part of Biden’s $1 trillion infrastructure project ‘evaporates’ as inflation pushes up material costs, reports Associated Press.

“These dollars basically evaporate,” Jim Tymon, executive director of the American Association of State Highway and Transportation Officials, told the AP. “The cost of these projects is going up 20%, 30%, and just erasing that increase from the federal government that they were so excited about earlier in the year.”

Rising prices have reduced what can be done with the funds, and officials in various states have said the money is not going as far as they would like. They fear that it will now take them more years to complete the projects.

Inflation rose last month to its highest rate in 41 years. On Sunday, Treasury Secretary Janet Yellen said inflation was “unacceptably high” but said she did not believe a recession was “inevitable”.

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