The Bond Buyer publishes its Investing in Infrastructure 2025 report, assessing America's infrastructure crisis from the municipal finance perspective

The research reveals industry leaders are pessimistic about meeting infrastructure needs over the next five years, citing political dysfunction as the top challenge

NEW YORK, Jan. 21, 2025 /PRNewswire/ -- The Bond Buyer, Arizent's essential resource serving the municipal finance industry, publishes its latest research, Investing in Infrastructure 2025, providing a sobering yet insightful look at the obstacles and opportunities facing America's infrastructure agenda. Sponsored by Assured Guaranty, the report draws from a comprehensive survey of municipal finance stakeholders and reveals less than half are optimistic the country can meet the most critical infrastructure needs in the next five years, citing political polarization and inflation as key concerns.

While the municipal market rebounded in 2024 — buoyed by rate cuts and a surge in issuance — the research indicates leaders express deep concern over political dynamics, escalating construction costs and challenges accessing federal funding.

Key findings include:

• Political dysfunction looms large: Both Republicans and Democrats agree it's the biggest challenge ahead for 2025.
• Urgent needs may go unmet: Roads, bridges and water systems remain top priorities, yet respondents question whether sufficient resources will be allocated in time.
• Doubts about federal support: Only a quarter of respondents are confident that the legislative actions and policies embedded in the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) will be enough to meet needed infrastructure investments.

"The municipal finance sector is questioning whether we can meet the moment when it comes to our country's infrastructure needs," says Janet King, Vice President of Research at Arizent. "There are projects that demand attention over the next five years, but the general consensus appears to be that it will take longer to resolve those issues — likely more than a decade."

The level of optimism also varies by industry role. Those on the sell side are most likely to see it as a long-term prospect, while buy-side respondents are more bullish in the short term, with 59% feeling positive about meeting critical needs in the next five years.

"The outlook is a mixed bag, but there's some optimistic alignment," King continues. "Survey participants are generally more confident about specific aspects of new infrastructure policy, including public-private partnerships and renewable energy projects."

To dive deeper into the municipal finance sector's assessment of infrastructure projects — including long-term outlook, rising construction costs, renewable technologies and how political affiliations impact perceptions — download the full report here: https://www.bondbuyer.com/research-report/can-we-meet-the-moment-when-it-comes-to-infrastructure-needs

Research Methodology

This research was conducted by Arizent, parent company of The Bond Buyer, to explore how participants in the municipal market are thinking about infrastructure issues and priorities facing U.S. cities and towns. This research was conducted online in June and July 2024 among 110 qualified respondents in the municipal finance industry.

About The Bond Buyer

Since 1891, The Bond Buyer has empowered issuers, investors and other municipal finance professionals to navigate the complexities of policy, regulation, market activity, infrastructure and more. Across its journalism, events, research and benchmarking, The Bond Buyer provides insight into the most relevant topics — from public-private partnerships to innovative deal structures. As the only independent resource serving the complete municipal finance community, The Bond Buyer's authoritative content connects leaders online, in person and in print every day.

About Arizent

Arizent is a business information company that advances professional communities by providing insights and analysis and convening industry leaders. The company uses deep industry expertise and a data-driven platform to deliver its services, which include subscriptions, marketing services, live events and access to Leaders, an executive forum. Arizent also connects business communities through leading financial services brands like American Banker, The Bond Buyer, Financial Planning and National Mortgage News, as well as professional services brands like Accounting Today, Employee Benefit News and Digital Insurance.

About Assured Guaranty
Through Assured Guaranty Municipal Corp. and its other insurance subsidiaries, Assured Guaranty Ltd. is the leading provider of bond insurance on principal and interest payments due on U.S. municipal bonds, as well as public infrastructure financings and structured financings around the world. Assured Guaranty also participates in the asset management business through its ownership interest in Sound Point Capital Management, LP and certain of its investment management affiliates. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com.

SOURCE Arizent