2025 ASCE Report Card: The untapped potential of private capital in American infrastructure

The ASCE 2025 Report Card: A Call for Resilience

The highly anticipated ASCE 2025 Report Card, unveiled in Washington, D.C., follows the American school grading model (A-F) to evaluate the condition of U.S. infrastructure across 18 categories. Each category receives an individual grade, as well as an overall rating, along with recommendations for improvement. This year, the report placed a strong emphasis on resilience, a timely addition given the increasing frequency and severity of extreme weather events—27 incidents in 2024 alone caused $122 billion in damages. The report underscores how private sector expertise, innovation, and a whole-lifecycle approach to asset management play a vital role in ensuring infrastructure resilience.

For the first time, the U.S. achieved a C grade, its highest-ever score—an improvement from 2021’s C-. However, the report reveals ongoing challenges, as nine categories, including energy and transport, remain in the D range. Key recommendations emphasize sustained infrastructure investment, prioritizing resilience, and fostering collaboration among federal, state, local, and private entities.

Addressing the $3.7 Trillion Infrastructure Gap

While the report acknowledges progress, it also highlights the substantial work ahead. Between 2024 and 2033, the U.S. faces a staggering $3.7 trillion infrastructure funding shortfall. During his panel discussion, Jon Phillips pointed to the critical role of private capital in bridging this gap. He noted that GIIA member assets in the U.S. remain underweighted compared to global investments, with only 17% of total assets and 25% of total value allocated to U.S. infrastructure. This represents a significant untapped opportunity to enhance resilience, particularly as the nation grapples with climate-related challenges and population growth.

Unlocking Private Capital for Infrastructure Investment

Globally, an estimated $3-5 trillion in "dry powder" (capital awaiting deployment) is available for investment, including infrastructure. Yet, the public sector continues to shoulder most of the responsibility for infrastructure maintenance and resilience, often absorbing financial and operational risks. Political cycles and budget constraints further complicate long-term planning, limiting the ability to sustain critical infrastructure effectively.

The Role of the Public Sector in Managing Risk

When governments assume full responsibility for infrastructure, they not only finance construction but also bear long-term liabilities, including maintenance and disaster resilience. Political and fiscal constraints make it increasingly difficult to uphold these obligations over time. However, by rethinking infrastructure ownership and management, the public sector can mitigate these risks.

By clearly defining its liabilities, the government can make a compelling case for transferring certain infrastructure assets to private ownership. This shift would not only relieve the public sector of ongoing maintenance costs but also generate immediate revenue through asset sales or leases. These funds could then be reinvested in public-sector priorities such as social programs and national security. A well-structured approach to private investment can ensure long-term infrastructure resilience while freeing up public resources for essential services.

Policy Challenges: The Inflation Reduction Act and Infrastructure Investment and Jobs Act

Legislation such as the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA) has placed infrastructure at the forefront of policy discussions. However, the IIJA has done little to incentivize private sector involvement. Of the $1.7 trillion allocated, only $100 million was earmarked for innovative financing—and only $50 million of that has been used. This missed opportunity limits the ability of private capital to play a more significant role in financing and maintaining critical infrastructure.

As policymakers prepare for IIJA reauthorization in 2026, they must prioritize flexibility for private investment. Doing so will allow the U.S. to modernize its infrastructure and enhance resilience against future challenges.

Leveraging Infrastructure Banks for Private Investment

One strategy for encouraging private investment is the creation of infrastructure banks. When properly designed, these banks can be powerful tools for reducing investment risk and attracting private capital to infrastructure projects. However, poorly structured infrastructure banks risk becoming a financial drain on public resources. The key is to establish these institutions as de-risking platforms that incentivize private sector participation rather than relying on public funds for long-term sustainability.

A New Approach to Infrastructure Investment

The U.S. has a unique opportunity to reshape its approach to infrastructure funding. By leveraging private capital, governments can reduce financial and operational risks while ensuring critical infrastructure remains resilient for future generations. The policy tools exist, but a shift in mindset is necessary to maximize their effectiveness. By embracing private sector investment, the U.S. can tap into a vast pool of global capital, paving the way for modern, resilient infrastructure that meets the demands of the 21st century.