The American Society of Civil Engineers awarded the nation’s infrastructure a “C” grade in its 2025 report card, released March 25—the highest mark since ASCE began its assessments in 1998. Yet this modest improvement from 2021’s “C-” comes with a sobering reality check: a $3.7 trillion gap remains between expected investment and what’s needed to bring assets to good repair.
The overall grade masks vastly different conditions across sectors. Bridges hold steady at “C,” with federal programs slowly chipping away at a backlog of 40,000-plus structures rated in poor condition. Schools languish at “D+,” where nearly four in ten buildings predate 1970 and HVAC systems fail in thousands of classrooms. Postal facilities face their own challenges, with inconsistent maintenance affecting more than 34,000 locations nationwide.
These conditions could create the backdrop for a growing role for private infrastructure investment. Firms like American Infrastructure Partners are positioning themselves to support public agencies, targeting the same sectors where federal programs face the steepest challenges.
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Bridges: Federal Programs Chip Away at the Backlog
ASCE’s “C” grade for bridges reflects an infrastructure category that is in some sense treading water.
The Bipartisan Infrastructure Law created two major programs to address bridge conditions. The Bridge Formula Program provides states with multi-year funding for replacements and rehabilitations, while the competitive Bridge Investment Program, authorized at 23 U.S.C. § 124, targets projects that prevent fair bridges from deteriorating into poor condition.
A 2024 Government Accountability Office review recommended refinements to how the Department of Transportation manages these discretionary awards, highlighting the complexity of distributing billions in federal funds effectively.
The latest federal grants illustrate both progress and persistent need. In 2024, federal highway officials announced $635 million for more than 70 bridges across 19 states: from replacing the earthquake-vulnerable Ghiglione Bridge in Alaska’s Denali National Park to repairing Maine’s dozen deteriorating Interstate 95 bridges with $133 million.
Wyoming secured $23 million to preserve an 85-year-old, 200-foot-high bridge in Yellowstone that could have closed within five years without intervention.
Yet these targeted investments barely scratch the surface. About 42,000 U.S. bridges remain in poor condition, with roughly 15,000 of them having languished in poor shape for more than a decade.
The American Road & Transportation Builders Association estimates $400 billion would be needed to address all bridge repairs nationwide—far exceeding even the Infrastructure Law’s historic $40 billion five-year commitment
Schools: Aging Buildings Strain District Budgets
School infrastructure continues earning ASCE’s second-lowest grade at “D+,” reflecting decades of deferred maintenance. According to the National Center for Education Statistics, the average main instructional building is 49 years old, with 38% of buildings constructed before 1970.
HVAC systems are a major area of need. A nationwide Government Accountability Office survey found that about 41% of districts needed to update or replace HVAC systems in at least half of their schools, with roughly 36,000 buildings requiring attention.
While many districts addressed ventilation during the pandemic, the underlying age profile and maintenance backlogs continue driving urgent facility needs.
“The consequences of outdated infrastructure extend beyond just discomfort; they are detrimental to student health and performance, and they carry real safety risks,” Bob Hellman, CEO of American Infrastructure Partners, wrote in a recent U.S. News & World Report op-ed.
Hellman noted that the U.S. Department of Energy estimates that addressing deferred maintenance in public schools would require more than $270 billion—fixing leaky roofs, broken plumbing, and outdated electrical systems.
Traditional funding methods increasingly fall short, with 42% of local bond measures defeated recently, resulting in approximately $31 billion in funding not secured for school projects.
Postal Facilities: Managing a Vast, Aging Network
The U.S. Postal Service operates over 34,000 facilities: 8,515 owned and 22,798 leased as of June 30, 2025. Office of Inspector General audits consistently identify maintenance gaps: a review of 118 mail processing facilities found HVAC preventive maintenance wasn’t consistently performed during 2016-2018, while a statistical sample of 193 facilities revealed widespread need for ventilation improvements
Congress provided targeted support through the Inflation Reduction Act, appropriating $3 billion for fleet modernization: $1.29 billion for vehicles and $1.71 billion for charging infrastructure and facility work. As of February 2024, USPS had spent about $112 million from these funds, with money available through fiscal year 2031. The electrical upgrades required for charging stations often trigger broader facility improvements, creating opportunities for coordinated modernization.
Private Capital’s Growing Role
American Infrastructure Partners has positioned itself across all three challenged sectors. The firm’s investment strategies include a transportation platform for bridge projects, an education initiative focused on existing facilities, and a logistics platform owning post offices across 47 states and Puerto Rico
“As private infrastructure investors, those of us in the business need to do more than react to an asset. We need to be reacting to a problem,” Hellman said. “Our industry needs to listen to what a community’s infrastructure problems are.”
United Bridge Partners, AIP’s bridge affiliate, has completed four bridges valued at over $100 million each in the past four years. The South Norfolk Jordan Bridge replacement in Chesapeake, Virginia, came in at $143 million—nearly 30% below the state’s estimate—when the city lacked funds for the $200 million project.
In Illinois, the Houbolt Road Extension addressed both transportation efficiency and environmental priorities, reducing CO2 emissions by 240.5 metric tons annually while redirecting truck traffic away from residential areas.
Through its education and postal platforms, AIP has expanded its footprint across community infrastructure. School Infrastructure Partners focuses on facility modernization in districts where traditional funding has fallen short, while American Postal Infrastructure maintains over 800 properties supporting USPS operations across 47 states and Puerto Rico.
These platforms operate within established federal frameworks, using mechanisms like Energy Savings Performance Contracts to deliver improvements without requiring upfront public capital.
The Accountability Framework
Public oversight remains paramount. ASCE sets condition frameworks and communicates national grades. The Federal Highway Administration maintains the National Bridge Inventory while running both major bridge programs.
GAO audits discretionary selection processes. USPS’s Office of Inspector General oversees facility audits and IRA disbursements. This constellation of agencies provides the public record against which any private participation is measured.
The “C” grade represents progress, but barely passing still means substantial work ahead.
