Special Briefing: Strategies for Closing the US Infrastructure Gap

From the deteriorating Gowanus Expressway in Brooklyn, New York, to the aging dams that supply approximately 70 percent of California’s water, America’s public infrastructure is in dire need of repair. The nation is estimated to have accumulated about $1 trillion in deferred infrastructure maintenance, and even more will be needed to rebuild or retrofit roads, water plants, schools, and electrical grids to withstand the punishments of increasingly extreme weather. Our panel of experts discuss the state of America’s infrastructure and how some states are developing strategies to better identify and fund needed investments.

Coinciding with the Special Briefing is the release of the Volcker Alliance's latest report series: Meeting the Trillion-Dollar Challenge. Panelist and chief researcher for the project, Camila Fonseca Sarmiento, will discuss the findings of the project, which takes an in-depth look at how ten states are currently tracking, disclosing, and funding their infrastructure maintenance gaps. It also offers a review of deferred infrastructure disclosure in capital budgeting documents across all fifty states and provides a framework to help states establish or improve their approach to addressing this critical issue.

Moderated by William Glasgall, Volcker Alliance Public Finance Adviser and Penn IUR Fellow, and Susan Wachter, Co-Director of the Penn Institute for Urban Research and Wharton Professor of Real Estate and Professor of Finance, this briefing is the sixty-second in a series of sixty-minute online conversations featuring experts from the national research networks of the Volcker Alliance and Penn IUR, along with other leading academics, economists, and federal, state, and local leaders. 

Special Briefings are made possible by funding from The Travelers Institute, the Volcker Alliance, and members of the Penn IUR Advisory Board. Recordings of the entire Special Briefings series are available on the Volcker Alliance or Penn IUR websites.

Be sure to subscribe to the Special Briefing podcast, available on Apple Podcasts, Spotify, Google Podcasts, TuneIn, iHeart Radio and more.

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EVENT RECAP

Public infrastructure gaps and deferred maintenance are critical challenges for state and local governments. For a discussion of how states and municipalities can better measure, manage, and fund infrastructure gaps, Penn IUR and the Volcker Alliance convened a panel of public finance experts for “Special Briefing on Strategies for Closing the U.S. Infrastructure Gap” on October 16, 2025.

William Glasgall, Penn IUR Fellow and Public Finance Adviser at the Volcker Alliance, and Susan Wachter, Co-Director of Penn IUR, co-hosted the Special Briefing. The panel included Fatima Yousofi, Senior Officer, The Pew Charitable Trusts; Camila Fonseca Sarmiento, Director of Fiscal Research, Institute for Urban and Regional Infrastructure Finance; Geoffrey Buswick, Managing Director & Sector Leader in U.S. Public Finance, S&P Global Ratings; Leslie Richards, Professor of Practice, City & Regional Planning, Weitzman School of Design and Director of the newly launched Transportation Initiative at Penn (R-TRIP); and Hughey Newsome, Chief Financial Officer, Sound Transit.

Glasgall framed the discussion by announcing the publication of the Volcker Alliance’s Meeting the Trillion-Dollar Challenge, a package of new reports released the day of the briefing covering “innovative strategies that states are rolling out to help upgrade their deteriorating roads, bridges, buildings.”.

Following Glasgall’s introduction, Yousofi opened with a stark reminder: Deferred maintenance is one of the largest hidden costs facing state and local governments. She pointed to Pew's research showing $105 billion in unmet road and bridge repairs since 1999, alongside Environmental Protection Administration estimates of $1.2 trillion needed to modernize water management infrastructure over the next two decades. Yousofi emphasized that the problem isn't just underinvestment—it's the lack of consistent tracking and reporting. “Maintenance postponed today can result in more expensive rebuilds and replacements needed tomorrow,” she said, noting that climate change is compounding these risks. She drew parallels to pension underfunding, warning that “these hidden costs can quietly accumulate for years until they really start crowding out spending priorities and straining government budgets.” The Volcker Alliance’s new tool kit offers a roadmap for states to measure obligations, plan ahead, and begin closing the trillion-dollar infrastructure gap. Yousofi highlighted promising practices in California and Arizona, where governments have begun publishing deferred maintenance estimates. “Consistent measurement and transparent reporting by governments can help them target their funds more strategically, manage costs more effectively, and really build public trust in how taxpayer dollars are being spent,” she said.

Glasgall then introduced Fonseca, principal author of the Meeting the Trillion-Dollar Challenge. She provided an overview of the report, which includes a 50-state review, 10 state case studies, and a toolkit for policymakers. “Back in 2018, we found that only 23 states were disclosing some information about deferred maintenance,” she said. “Now, in this 2025 report, we found 30 states are actually disclosing deferred maintenance in their capital budgeting documents.” Despite progress, Fonseca noted that definitions and approaches vary widely, and funding remains insufficient. “When we look into the 10 case studies, the funding that is allocated for deferred maintenance only covers 4% of the total need,” she said. The report highlights innovative strategies in certain states including Montana, Oklahoma, Illinois, and California, including revolving funds, interest-free loans, and targeted bond initiatives.

Wachter then introduced Buswick, who continued with a discussion of the risks central to resolving the nation’s infrastructure challenges. “The risk is heightened by the familiar practice in public finance of delivering needed infrastructure on a ‘just-in-time’ basis,” he said. Buswick said that 75% of U.S. infrastructure is funded through municipal bonds, with 2025 on track for a record $600 billion in bond volume. As federal incentives are curtailed, more costs are shifting to lower levels of government. “This could further challenge this needed upkeep in spending,” he warned. Buswick cited the American Society of Civil Engineers’ estimate of $3.7 trillion in capital needs above current funding levels over the next decade. He also pointed to the Governmental Accounting Standards Board (GASB), which is developing new guidance on deferred maintenance reporting, expected in early 2026. “Comparable data is hard to come by,” he said, “so anything GASB can do to help will likely be welcomed.”

Glasgall introduced Richards, former Pennsylvania Transportation Commissioner and CEO of SEPTA, southeast Pennsylvania’s regional mass transit system, who brought the conversation to ground level. “What SEPTA is dealing with right now really highlights the broader challenge facing American transit systems,” she said. “And that is trying to keep aging equipment safe and reliable with limited resources and growing expectations.” Richards described recent fires involving SEPTA’s Silverliner IV cars, which have been in service since the mid-1970s. “You can't maintain your way out of a 50-year-old fleet,” she said. “At some point, the equipment simply needs to be replaced.” With no capital to buy new rail cars, SEPTA redirected $350 million from capital projects to operations. “Using capital funds for operations is like using your roof repair fund to pay the light bill,” Richards said. “It keeps things working today, but the storm is still coming.” She warned that federal shutdowns could delay reimbursements and grants, undermining local efforts. “We can't keep running a 21st century service on 20th century equipment with 19th century funding models,” she said. “We have to build a new approach, one that values reliability, transparency, and safety of the people who ride and operate these systems every day.”

Wachter thanked Richards for her comments and congratulated her on the launch of the Transportation Initiative at Penn (R-TRIP): “Today, it's my great pleasure to tell you all that Leslie Richards is inaugurating a new program at Penn on transportation research. This initiative will bring together academics and leaders of state and local governments and transit agencies throughout the country to take on this very critical challenge.”

Following an introduction by Wachter, Newsome shared his experience tackling this challenge at the local level with Sound Transit, a public transit agency serving the Seattle metropolitan area, where rapid expansion has created opportunities and risks. “We’re trying to be very proactive in terms of the way we think about State of Good Repair,” he said. Newsome noted that while Sound Transit’s equipment is relatively new, the agency is already planning for future maintenance costs. “We have to find ways to fund our State of Good Repair program in perpetuity,” he said. He described the agency’s use of federal grants and Transportation Infrastructure Finance and Innovation Act (TIFIA) loans but warned that the current shutdown could disrupt cash flow. “We’re watching very carefully to make sure that we don’t have a liquidity challenge,” he said. Newsome described a “cascading impact” of operation and maintenance challenges meeting global supply chain issues due to reliance on global manufacturing systems.

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Geoffrey Buswick is a managing director and sector leader for the U.S. Public Finance (USPF) Group.  In this capacity, he is responsible for improving transparency and external understanding in S&P ratings and the rating process.  Currently, his focus is on sharing information to the broader capital markets in relation to S&P’s approach in gauging credit risk of direct purchase bank loans, pension and OPEB assessments and distressed municipalities.  

From October 2010 through March 2015, Geoff served as the Lead analytical manager for the Public Finance Infrastructure Group and, beginning in January 2014, the Housing team as well.   From 2005 through September 2010, he served as the Boston office head for Standard & Poor’s Rating Services.   As office head, Geoff was responsible for strategic planning and the day-to-day operations of the regional office serving New England.   He also oversaw regional investor relations’ activities and managed corporate and government client relations.  Geoff joined S&P in 2000 as a state and local government analyst, focusing on East Coast state, county, city, and town credits.  Additionally, he was a public finance national sector leader for both state revolving fund/pool issues and pension issues (including other post-employment benefits).   

Prior to joining Standard & Poor’s, Geoff served as the CFO, treasurer & collector for the City of Gloucester, Mass.  In addition, he spent three years as the Administrative Officer for the City of North Adams, Mass. Geoff served on the board of governors of the National Federation of Municipal Analysts (NFMA) from 2010-2013, and was the co-chair for the 2012 and 2013 NFMA Annual Conferences.  Geoff also served on his town’s Finance Committee from 2008-2015. Geoff holds both a BA in Political Science and an MPA from the University of Massachusetts at Amherst. 

Hughey Newsome is the chief financial officer for Sound Transit. He was appointed to this position in October 2009. Newsome comes to Sound Transit from Piston Group, an automotive manufacturing company focused on electrification, where he was CFO. His strong base of experience includes strategic financial management and administrative oversight to ensure the financial health of a variety of large organizations. Newsome also has a track record of municipal finance leadership, including serving as CFO for both county and city governments, where he led successful bond financing initiatives and credit rating improvements.

Camila Fonseca Sarmiento is the director of fiscal research at the Institute for Urban and Regional Infrastructure Finance (IURIF) at the University of Minnesota’s Humphrey School of Public Affairs. At the institute, she is engaged with research related to evaluating the economic impacts of policies, public budgeting, and public finance. Camila is also a research scholar at the Center for Transportation Studies.

Camila has published in Transport Policy, Transportation Research Record, Urban Studies, and Sustainability, and has worked on funded projects supported by the Minnesota Legislature, Minnesota Department of Transportation, Minnesota Local Road Research Board, and The Volcker Alliance.

Camila holds a Master of Public Policy from the Humphrey School of Public Affairs, and a bachelor's degree in economics and finance from Universidad del Rosario (Colombia). Before joining IURIF, Camila consulted for the World Bank and the Inter-American Development Bank and worked in her native Colombia in the financial sector.  

Leslie S. Richards is the former Secretary of the Pennsylvania Department of Transportation (PennDOT), the fifth-largest state Department of Transportation in the United States, and the former CEO and General Manager of SEPTA, the sixth-largest transit system in the country, serving the greater Delaware Valley.

Trained as a planner, she is known for her commitment to inclusive community engagement and her ability to align complex interests across sectors. The first woman and the first professional planner to lead PennDOT, Richards prioritized the integration of quality-of-life and accessibility considerations into major infrastructure decisions. She led both agencies through significant crises—including a global pandemic and cybersecurity threats—while advancing long-term capital and modernization programs.

Richards is nationally recognized for her leadership in integrating emerging technologies into transportation systems. Her work has emphasized the use of data analytics, artificial intelligence, and smart infrastructure to drive innovation and improve public service.

She has served as Chair of the Pennsylvania Public-Private Partnership (P3) Board, Chair of the Pennsylvania Turnpike Commission, and currently chairs the Transportation Research Board of the National Academies.

Richards received a Master of Regional Planning from the University of Pennsylvania in 1993 and was appointed to the Weitzman School faculty in 2020.

Fatima Yousofi is a senior officer for The Pew Charitable Trust. She leads the state fiscal policy project’s work examining additional long-term liabilities to state and local governments budgets, including the accumulated deferred maintenance of public infrastructure. Her research also explores emerging financial risks to public pension funds and infrastructure from the enduring effects of climate change, and the potential costs of failing infrastructure.

Before joining Pew in 2016, Yousofi was a senior policy and compliance analyst for the Virginia Retirement System, where she helped develop, implement, and manage the state’s Line of Duty Death and Health Benefits Trust Fund.

Yousofi holds a bachelor’s degree in psychology and a master’s in public policy and public administration from Virginia Commonwealth University.