Breaking Down America’s $3.7 Trillion Infrastructure Funding Gap

Breaking Down America’s $3.7 Trillion Infrastructure Funding Gap

Despite many government efforts to modernize U.S. infrastructure, such as The Infrastructure Investment and Jobs Act and the CHIPS Act, the U.S. infrastructure funding gap stood at a staggering $3.7 trillion in 2025.

In this graphic, the first in the Electrification Series, Visual Capitalist has partnered with Global X ETFs to explore the state of U.S. structural funding and discover which areas of infrastructure require the most investment.

Evaluating the Infrastructure Funding Gap

The American Society of Civil Engineers (ASCE) evaluates U.S. infrastructure biennially. In 2025, the organization found that U.S. infrastructure was underfunded by an incredible $3.7 trillion. This contributed to the overall ‘C’ grade the ASCE awarded in the same year.

Here’s how this funding gap breaks down by sector:

A Pressing Need

While the ASCE believes the U.S. needs nearly $700 billion to modernize its waste and stormwater sectors. This is the most of any industry. An area of significant concern is U.S. energy and utilities.

By 2040, the U.S. electricity demand is projected to skyrocket by 47%. This increase is due to the aggressive expansion of data centers nationwide, the adoption of EVs, and the ever-growing demand for advanced AI.  

Investing in Power

While much of the U.S. backbone needs funding to bring it into the 21st century, America’s incredible demand for energy has created tailwinds in the energy sector and opportunities for savvy investors.

Are you interested in learning more about the electricity demand and electrification?

In the second part of the Electrification Series, we explore the driving forces behind the surge in demand for U.S. power.

Learn more about the Global X Electrification ETF (ZAP).