Progress on addressing US infrastructure gap likely to be slow despite calls to action

While federal government proposals calling for $1 trillion in infrastructure spending would be credit positive for state and local economies, several constraints suggest that investment will be slow to ramp up, according to Moody’s Investors Service in a new report. Due to a lack of bipartisan agreement over funding mechanisms, as well as regulatory hurdles and practical constraints, Moody’s expects additional spending to be modest in 2017 and 2018.