Overview Communities around the world are increasingly suffering the consequences of accelerating changes in the global climate, such as more frequent and severe storms, extreme heat, rapid swings in precipitation patterns, and rising sea levels. 1 But for state and local governments in the U.S., these effects are also compounding challenges brought on by decades of underinvestment in critical public infrastructure, which have left the nation’s roads, bridges, public transit, and drinking water systems highly vulnerable to shifting climate realities. State and local governments spend a significant portion of their annual budgets on the construction, maintenance, and operation of roads, bridges, and public transit systems. Recent analyses show that in 2022, these governments spent roughly $180 billion—triple the federal government’s infrastructure expenditures—on roads and bridges on the U.S. highway system alone. 2 And from 1956 to 2017, states and localities outspent the federal government by an average of $63 billion annually on water resources and utilities. 3 Yet despite such investments, 43% of the nation’s roadways were in poor or mediocre condition as of 2021, with the backlogged repair and maintenance costs estimated at $435 billion. 4 Climate impacts will only aggravate these investment needs. By some estimates, climate-related damage to paved roads alone could cost up to $20 billion to repair by the end of the century, and upgrades to ensure that these roads can withstand changing conditions could cost an additional $5.8 billion to $10 billion. 5 Similarly, a recent survey of state and local governments concluded that they will need to spend roughly $625 billion over the next 20 years to maintain and improve the nation’s drinking water infrastructure, with another $448 billion to $944 billion needed through 2050 to adapt drinking water and wastewater systems for the consequences of climate change. 6 And these challenges […]