Originally published on January 30, 2024, by Matt Norris and Chris Perkes for UrbanLand Magazine.

Current and upcoming federal infrastructure funding opportunities—including through the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA)—have the potential to spur resilient, sustainable, and equitable outcomes for cities. But how can real estate developers access and leverage this funding and play a role in shaping infrastructure decisions to drive sustainability outcomes in cities?

Approximately $394 billion over the next 10 years will be spent on decarbonization and converting the grid to clean energy through the IRA, according to McKinsey & Co. Through 2026, at least $550 billion will be spent on U.S. transportation networks and other projects through the BIL, according to the White House. More federal funds through the BIL will be spent on energy efficiency and conservation, brownfield clean-up, reducing pollution, and removing or retrofitting highways that divide communities, among other projects (a collection of ULI resources related to federal infrastructure through the IRA and BIL is available at uli.org/federalfunding).

Investments in decarbonization by developers can have financial returns in the form of lower operating costs, increased property values, and attraction and retention of tenants. Furthermore, reducing greenhouse gas emissions and creating communities that are less reliant on cars can support developer and tenant ESG goals.