New Highway Bill Could Dwarf 2021 Infrastructure Law—Here’s What Contractors Need to Know Now
Executive Brief
The Gist: Granite Construction’s CEO just signaled the next federal highway bill will be “significantly higher” than the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA), with an additional $40 billion in border infrastructure spending accelerating now.
- The Trap: Small contractors who don’t pre-qualify for federal work or build subcontractor relationships with Tier 1 firms will miss the biggest infrastructure wave in 40 years.
- The Play: Start bonding capacity reviews, DBE/MBE certifications, and strategic partnerships with prime contractors today—not when the bill passes.
Why This Matters
When a $4.6 billion publicly traded contractor like Granite Construction says the next highway bill will be “significantly higher” than the IIJA, they’re reading congressional tea leaves most small contractors can’t see. This isn’t speculation—it’s a signal based on backroom conversations with DOT officials and federal procurement forecasts.
The IIJA already pumped $110 billion into roads and bridges. If the next bill is 20-30% larger, we’re talking $130-$145 billion in new highway work alone. Add the $40 billion border infrastructure acceleration (think roads, utilities, site prep for detention facilities), and you’ve got a $185 billion opportunity window opening in 2026-2027.
Here’s the brutal math: Granite is already hunting acquisitions to grab market share before this hits. They know the federal procurement machine rewards scale. If you’re a $500K-$5M contractor doing residential remodels or commercial TI work, this wave will affect you—not because you’ll bid federal jobs, but because every Tier 1 and Tier 2 contractor will be sucking up skilled labor, equipment rentals, and material supply chains.
The smart move? Don’t chase federal work directly unless you have bonding capacity above $2M. Instead, position yourself as the specialized subcontractor that primes need: site utilities, concrete finishing, electrical rough-ins. Get your DBE or MBE certification now (8-12 week process). Build relationships with regional offices of Granite, Kiewit, and Ames Construction before their pipelines explode.
Contractor FAQ
Should small contractors try to bid federal highway projects directly?
No, unless you have $2M+ bonding capacity and experience with Davis-Bacon wage compliance. The real money is in subcontracting to primes who need local expertise in drainage, grading, or utility tie-ins. Focus on getting prequalified with 3-5 Tier 1 general contractors now.
How will this affect my material costs and labor availability in 2026-2027?
Expect aggregate, rebar, and diesel costs to spike 15-25% once projects break ground. Skilled operators (excavator, grader, paver) will command $5-$10/hour premiums. Action item: Lock in fuel contracts and cross-train your crew on heavy equipment operation this winter.
What’s the fastest way to get certified as a disadvantaged business enterprise (DBE)?
Start with your state DOT’s DBE certification portal (8-12 weeks). You’ll need three years of tax returns, proof of ownership, and a personal net worth statement under $1.32M. Hire a grant writer ($2K-$5K) to handle the paperwork—DIY applications get rejected 60% of the time on first submission.
Is Granite’s acquisition spree a warning sign for small contractors?
Yes—it means consolidation is accelerating. If you’re doing $2M-$10M annually in site work or civil construction, expect acquisition offers in the next 18 months. Get a business valuation now (cost: $3K-$8K) so you know your walk-away number before a Granite or Kiewit calls.
STOP Guessing on Job Costs
You are losing money on lost invoices and unbilled hours. See why we recommend Housecall Pro to stop the bleeding.
(Read our full Jobber vs. Housecall Pro Review)
Author: Mike Warner
About the Founder Kore Komfort Solutions is an Army veteran-owned digital platform led by a 30-year veteran of the construction and remodeling trades. After three decades of swinging hammers and managing crews across the United States, I’ve shifted my focus from the job site to the back office. Our New Mission: To help residential contractors move from "chaos" to "profit." We provide honest, field-tested software reviews, operational playbooks, and insights into the AI revolution—empowering the next generation of trade business owners to build companies that last.