Streets and roads, water systems, and sewer infrastructure are facing growing capital pressures in cities across the country, according to a new report from the National League of Cities. Georgia cities are feeling the same pressure, projecting $33 billion in capital needs over the next five years.
NLC's 2026 Municipal Infrastructure Conditions report, based on a survey of municipalities nationwide, found that streets and roads have seen satisfactory ratings drop from 55 percent to 38 percent since 2022. Water systems fared even worse, with satisfactory ratings falling from 82 percent to 39 percent over the same period. The report suggests that "lower 2026 ratings may reflect greater visibility into existing needs rather than rapid deterioration," pointing to new federal funding requirements that have prompted cities to conduct more detailed assessments of systems that were previously underdocumented.
Bridges held relatively stable, with satisfactory ratings essentially unchanged at 51 percent in 2022 and 52 percent in 2026, though only 15 percent of respondents identified them as a high priority. A few categories rated comparatively well, with roughly 73 percent of respondents giving power systems a satisfactory grade, virtually unchanged from the 77 percent reported in 2022.
Cities are also shifting how they pay for infrastructure. Compared to 2022, when most municipalities used a blend of borrowing and local revenues, more cities today are relying primarily on cash-based funding. Funding availability was cited by 80 percent of respondents as a major influence on capital decisions, compared to staff recommendations at 57 percent and elected officials' priorities at 31 percent.
The national findings track closely with what Georgia cities are already reporting. GMA's capital needs survey found that water and sewer is the greatest capital need across the state, with a projected statewide need of $10.3 billion through 2029. Transportation follows at $9.7 billion. Together, water, sewer and transportation account for 60 percent of Georgia cities' total projected capital needs.
Key takeaways from the NLC report include:
- Streets, water, and sewer systems face the greatest pressure and draw the most capital attention
- Public buildings and parking lots are deteriorating but remain lower priorities
- Federal Infrastructure Investment and Jobs Act grants have been most impactful for water and transportation infrastructure, with more than $12.7 billion secured by over 1,600 cities nationally
The NLC report concludes that "sustained funding, technical support and strong local capacity will be essential to ensure communities can fully leverage available resources and build infrastructure that meets the demands of a changing future."