State capital spending, which includes expenditures on construction, rose in fiscal 2022 by an estimated 15.3% to $149.2 billion, according to the latest annual report by the National Association of State Budget Officers, which says it is the largest annual gain since 1994.
The group's report, released Nov. 18. also says that states' capital spending is likely to continue to climb at high rates for the next several years as they continue to tap funds from the American Rescue Plan Act (ARPA) and the Infrastructure Investment and Jobs Act ( IIJA), which were signed into law in 2021.