Based on EC&M’s annual proprietary survey results from our Top 40 Electrical Design Firms and Top 50 Electrical Contractors, the nation’s top electrical firms are thriving on private-sector demand, but their confidence in federal infrastructure funding may be waning. Delivering strong backlogs and record revenues from leading players in electrical design and electrical contracting in 2024 (the full year in which both survey results are based on), the 2025 data also revealed a clear skepticism regarding infrastructure funding. Overall, few respondents expect that the Infrastructure Investment and Jobs Act (IIJA) or Inflation Reduction Act (IRA), which authorized approximately $1.2 trillion for transportation and infrastructure spending from 2022 through 2026, will meaningfully move the needle anytime soon.
When asked how they thought the executive order President Trump signed in January 2025 (dubbed “Unleashing American Energy”), which halted federal agencies from disbursing IIJA and IRA funding (including monies Congress had already authorized and earmarked for EV charging infrastructure, broadband/telecom, roads and bridges, rail buses, airports, shipping ports, electric grid updates, renewables, and water/wastewater work — many of which were already underway), would affect federal construction projects in 2025 and 2026, respondents seemed to be on the same page.
Among Top 40 Design Firms, only 3% expect the IIJA to have a significant impact on their 2025 projects (down sharply from 12% a year earlier) while nearly 75% foresee minor to moderate negative effects. The Top 50 Contractors echo the theme of unease. Slightly more than half say a freeze or disruption in IIJA/IRA funding will negatively affect federal construction projects through 2026. Only 16% are confident that repeal of the legislation is completely off the table, while about 65% project a gain of no more than 5% in new-project revenue tied to federal infrastructure funds.
As Freelance Writer Tom Zind details in the cover story, “Inside the Infrastructure Funding Gridlock,” the slowdown is real. The IIJA and IRA were built to modernize power systems, expand EV charging, and boost grid resilience. But by mid-2025, implementation had stalled under political shifts, agency turnover, and a flurry of executive orders and reviews. This article does an excellent job of summarizing key takeaways on the current state of federal infrastructure dollars and what the future may hold for disbursement of funds in specific markets.
Take the Department of Transportation’s National Electric Vehicle Infrastructure (NEVI) program as an example, which allocated $7.5 billion to seed a national charging network. Yet a July 2025 report titled “Electric Vehicle Infrastructure: Improved Performance Management Needs to Be Part of Any Related Federal Efforts” from the U.S. Government Accountability Office (GAO) found that, as of April, only 384 federally funded chargers were open to the public. While the DOT has since issued new guidance to release the 84% of funds still unobligated, electrical contractors active in this market are rightfully wary. The Department of Energy has been even slower to deliver. Out of roughly $43 billion in IIJA funds available through FY 2025, only 11% has been obligated and 1% expended, according to GAO data. Zind noted that the DOE’s programs — particularly those related to “green” energy — have been entangled in executive reviews that prioritize fossil fuel development. This could result in developers, engineers, and contractors getting caught up in potential cancellations.
As of press time in mid-October, IIJA and IRA funds seem to be no longer “entirely” frozen, but they’re not exactly free flowing either. According to reports from Utility Dive online, many programs and awards that were already obligated or executed have resumed disbursements after legal pushback forced the Administration to reinstate previously withheld funds. Still, new awards, especially ones tied to green energy projects, remain under higher scrutiny, are subject to pause, or may receive slower approval. With IIJA and IRA funding still at least partly in flux, EC&M will continue to track this evolving situation and report on any significant developments.
