The 10 states with the poorest infrastructure in America stand to benefit the most from billions of federal dollars.
- In generations, American infrastructure is receiving the largest financial support, with certain states requiring more assistance than others.
- The Biden administration's large federal programs have sparked competition among states and businesses for a share of the benefits.
- CNBC's 2024 Top States for Business competitiveness rankings have infrastructure as the most heavily weighted category.
Since the New Deal, the U.S. government has not invested this much money in rebuilding America's infrastructure. Now, companies and states are eager to receive their share of the federal funds.
Infrastructure is the primary focus of economic development discussions this year, and it also plays a significant role in CNBC's 2024 ranking of America's Top States for Business. Infrastructure has been the most heavily weighted category in the study since its inception in 2007.
According to Transportation Secretary Pete Buttigieg, the "infrastructure moment" is not only driven by federal funds, with over $100 billion allocated for infrastructure improvements in the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act, but also by a broader recognition of the importance of infrastructure investment.
""As a country, we were reminded of the importance of infrastructure through the pressures we experienced at the beginning of this decade with Covid. The instability we experienced highlighted the need for reliable infrastructure to move people and goods in order to survive and thrive in this decade and beyond," he said."
Our Top States study evaluates each state's infrastructure by examining not only roads, bridges, ports, and airports, but also the power grid, water utilities, and broadband. We assess which states are most vulnerable to climate disasters such as wind, floods, and fires. Additionally, we examine the availability of vacant land and industrial and office space. Starting in 2024, we will also consider state initiatives known as site readiness programs, which connect companies with shovel-ready locations.
According to Seth Martindale, chairman of the Site Selectors Guild, some states stand out due to their willingness to invest in infrastructure, which is reflected in the data provided by the organization for this year's study.
While some states have excellent infrastructure, these ten states require significant assistance.
10. Arkansas
In 2017, the Arkansas Broadband Office declared that "help is on the way" for unconnected residents of the state.
According to the report, it appears that the year 2020 will signify a pivotal moment for broadband in Arkansas.
Despite the hope, Arkansas still ranks 48th in the country for internet connectivity, with only about 26% of residents having access to a high-speed plan for $60 or less per month, according to BroadbandNow.
With more than $1 billion in broadband funding from the Bipartisan Infrastructure Law, the state is determined to fulfill its promise and improve internet access for its residents. The state broadband office has noted that this allocation is the ninth-largest per capita in the nation. The funding is also being used to create a map of internet service throughout the state and to help residents develop digital skills.
Currently, the Arkansas Economic Development Corporation has nine certified development sites available, with sizes ranging from 37 to 1,800 acres.
The 2024 Infrastructure Score is 177 out of 425 points, with the top states receiving a grade of D+.
U.S. population within 500 miles: 79,833,890
Roads in unacceptable condition: 12.2%
Bridges in poor condition: 5.3%
Affordable broadband access: 26.3%
Power outages per year: 6.9 hours
Site readiness program: Yes
9. North Dakota
Gov. Burgum wrote to President Biden requesting federal disaster assistance after an estimated $11.5 million in damage was caused by a widespread ice storm in North Dakota last Christmas, leaving thousands without power.
The community has been experiencing a consistent cycle of recovery from significant and variable disaster events, as stated.
In the past 5 years, North Dakota has made a total of 11 federal disaster requests, and all of them have been approved by the president.
North Dakota's power grid is one of America's least reliable, leaving utility customers struggling to cope with a cycle of disaster and response.
The Otter Tail Power Company and Minnesota-Dakota Utilities aim to enhance the condition by constructing a 95-mile, 345-kilovolt transmission line in the state, but it will not become operational until 2028.
The 2024 Infrastructure Score is 171 out of 425 points, with the top states receiving a grade of D+.
U.S. population within 500 miles: 11,106,055
Roads in unacceptable condition: 4.7%
Bridges in poor condition: 10.6%
Affordable broadband access: 25%
Power outages per year: 9.3 hours
Site readiness program: No
8. Montana
While Montana is known as Big Sky Country, there are limited options for setting up a business on the ground.
In May, a search for vacant commercial or industrial sites 15 acres or larger yielded only 41 statewide. According to CoStar Group, finding industrial, office, and retail space is equally difficult. Connecting with customers and vendors can be challenging, both virtually through Montana's poor broadband network and physically due to its remote location. However, once you arrive, the roads are in excellent condition.
The 2024 Infrastructure Score is 162 out of 425 points, with the top states receiving a grade of D.
U.S. population within 500 miles: 8,908,435
Roads in unacceptable condition: 5.8%
Bridges in poor condition: 6.9%
Affordable broadband access: 41.7%
Power outages per year: 3.8 hours
Site readiness program: No
7. Massachusetts
Spending time in traffic is a common occurrence for Bay State residents, as the state's average commuting time of 28.6 minutes is the fourth-longest in the nation. Additionally, the state's roads are in poor condition, with nearly 36% in unacceptable condition, and 8.5% of bridges in poor condition, according to the U.S. Department of Transportation.
The Site Selectors Guild reports that Massachusetts lacks a program to assist companies in identifying shovel-ready sites, making it challenging to set up shop. On the other hand, finding affordable high-speed internet service can be difficult when working from home.
The 2024 Infrastructure Score is 160 out of 425 points, with the top states receiving a grade of D.
U.S. population within 500 miles: 67,898,118
Roads in unacceptable condition: 35.6%
Bridges in poor condition: 8.5%
Affordable broadband access: 28.2%
Power outages per year: 2.7 hours
Site readiness program: No
6. West Virginia
While West Virginia's power sources are environmentally unfriendly, with only 7% coming from renewable sources and the majority from coal, the grid is also notorious for its unreliability. Power outages are a common occurrence in the Mountain State, and unlike in many states, these outages are not limited to bad weather.
The White House is promoting $460 million in clean energy initiatives in West Virginia, along with billions in private sector commitments. However, West Virginia politicians, including Governor Jim Justice and Senators Joe Manchin and Shelley Moore Capito, contend that the state's coal industry is vital not only to the West Virginia economy but also for grid stability in their state and beyond. They argue that a shift away from coal would result in more power outages.
This year, West Virginia, along with 24 other states, filed a lawsuit against the EPA regarding power plant rules that the West Virginia Coal Association claims would force the closure of all nine of the state's coal-fired plants. Additionally, Gov. Justice, who is running for Senate, vetoed a bill that would have allowed solar plants to expand in the state.
Currently, West Virginia Economic Development has designated seven shovel-ready sites, with sizes ranging from 1.3 acres to 102 acres.
The 2024 Infrastructure Score is 158 out of 425 points, with the top states receiving a grade of D-.
U.S. population within 500 miles: 137,948,693
Roads in unacceptable condition: 13.4%
Bridges in poor condition: 19.7%
Affordable broadband access: 30.2%
Power outages per year: 16.7 hours
Site readiness program: Yes
5. Mississippi
Mississippi faces twin threats of hurricanes and severe thunderstorms, with wind and hail to the north, putting its infrastructure, people, and businesses at risk. First Street Foundation, a nonprofit research organization, reports that not a single property in the state is immune to climate-related damage. Over 16% of properties are at risk of flooding, making Mississippi one of the states with the highest risk. Additionally, the severe weather often results in power outages.
According to BroadbandNow, only 31% of Mississippians have access to affordable internet service, and the service is generally slow.
The 2024 Infrastructure Score is 154 out of 425 points, with the top states receiving a grade of D-.
U.S. population within 500 miles: 76,078,478
Roads in unacceptable condition: 14.5%
Bridges in poor condition: 6.3%
Affordable broadband access: 31.1%
Power outages per year: 7.5 hours
Site readiness program: No
4. Hawaii
Despite the wildfires in Maui killing over 100 people and destroying Lahaina, investigators have not identified a cause after nearly a year. However, they have focused their investigation on downed power lines after a major utility pole snapped in high winds. This would mean that one of the worst disasters in Hawaii's history was caused by infrastructure issues. However, the island paradise faces even more pressing infrastructure problems than its power grid, which is relatively reliable.
For decades, Hawaiians have struggled with substandard roads. Over a third of the roads are in disrepair, including parts of the Honoapi'ilani Highway, which connects Western Maui, including Lahaina, to the rest of the island. The highway runs along the coast, and climate change is making it more vulnerable to washouts from high tides. A $90 million project is currently underway, partially funded by the Bipartisan Infrastructure Law, to rebuild the road. The five-year project includes new measures to combat coastal erosion and a projected three-foot rise in sea levels.
Transportation Secretary Pete Buttigieg stated on CNBC that we won't have someone construct a road the same way again if it's consistently being washed out due to a once-in-a-hundred-year event.
The 2024 Infrastructure Score is 150 out of 425 points, with the top states receiving a grade of D-.
U.S. population within 500 miles: 1,270,874
Roads in unacceptable condition: 37.7%
Bridges in poor condition: 6.7%
Affordable broadband access: 20%
Power outages per year: 3.1 hours
Site readiness program: No
3. New Hampshire
Despite airports across the country experiencing a surge in passenger traffic, Manchester-Boston Regional Airport in New Hampshire saw a 72% decrease in traffic through April. This was before Spirit Airlines suspended its flights between Manchester and Orlando in May, citing softening demand. The airline then announced it would be adding flights at Boston's Logan International Airport instead, following the collapse of its proposed merger with JetBlue, which also operates out of Logan.
New Hampshire experiences extreme weather, making its power grid vulnerable and unreliable, but the state stands out in terms of connectivity. Its average download speeds are the fastest in the country, and service is widely available.
The 2024 Infrastructure Score is 145 out of 425 points, with the top states receiving a grade of F.
U.S. population within 500 miles: 64,023,320
Roads in unacceptable condition: 6.7%
Bridges in poor condition: 7.6%
Affordable broadband access: 45.8%
Power outages per year: 10.3 hours
Site readiness program: No
2. Maine
Nearly 70% of Mainers voted against the 2023 referendum to establish Pine Tree Power, which aimed to take over the state's largest utilities, Versant and Central Maine Power, due to their notoriously unreliable power grid.
Despite receiving a $4.4 million grant from the Energy Department earlier this year to improve its grid's resilience, Maine's power outages have persisted, making its grid one of the worst in the nation. The state's challenges, such as its vast and remote forests, make it difficult to mitigate the impact of a single downed tree in a winter storm.
The 2024 Infrastructure Score is 140 out of 425 points, with the top states receiving a grade of F.
U.S. population within 500 miles: 46,214,698
Roads in unacceptable condition: 9%
Bridges in poor condition: 14.8%
Affordable broadband access: 45.8%
Power outages per year: 16.1 hours
Site readiness program: No
1. Alaska
Alaska, with its vast area of over 665,000 square miles, is America's largest state. However, despite its size, the state has limited space available for businesses to develop, with only eight parcels larger than 15 acres available in May. Industrial, office, and retail space are also scarce, and there is no program in place to connect businesses with available sites.
The internet service is the poorest in the country, with sluggish speeds and restricted availability. Additionally, the power grid is as unreliable as expected in such a harsh and unforgiving environment.
Alaska stands out in the field of water systems, with high-quality water, minimal lead pipes, and diligent maintenance. Despite its nickname as the "Last Frontier," the state's infrastructure is among the best in the nation.
The 2024 Infrastructure Score is 118 out of 425 points, with the top-performing states being F.
U.S. population within 500 miles: 609,425
Roads in unacceptable condition: 21.6%
Bridges in poor condition: 8.1%
Affordable broadband access: 20%
Power outages per year: 9.6 hours
Site readiness program: No
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