State budgets for FY 2026 share a striking set of priorities. Almost all are channeling major resources into long-term infrastructure strategies, especially transportation networks, water supply systems, broadband expansion, and energy resilience.
Already, New York has committed to a record $68.4 billion for its Metropolitan Transportation Authority’s capital program – the largest transit investment in its history. Texas has advanced a $20 billion plan to secure future water supplies. Florida’s FY 2025–26 budget directs $15.1 billion toward roads, bridges, rail, spaceports, and ports. Illinois is pushing forward with an updated Rebuild Illinois initiative, which allocates about $45 billion to modernize transportation, state facilities, broadband infrastructure, and water systems. North Carolina has set aside more than $1.1 billion for public facility upgrades and infrastructure designed to improve resilience against flooding and other climate-driven risks. California is committed to a multi-year program for clean energy, water security, and regional transportation, but its allocations are spread across several funding streams.
In many cases, these efforts blend state appropriations with matching federal dollars from recent infrastructure and resilience legislation. The result is a burst of capital spending aimed not only at addressing deferred maintenance but also preparing for future population growth, extreme weather, and technological change. It appears that 2026 will be a pivotal year for rebuilding and modernizing America’s core systems. A few of the projects that follow will soon seek private sector collaboration partners.
Officials at the Metropolitan Transportation Authority (MTA) in New York are preparing a major station renewal project. It will target two complete station overhauls and state-of-good-repair work at 28 additional stations across Westchester, Rockland, and Putnam counties. With a projected investment exceeding $100 million, the initiative will modernize critical passenger facilities and address long-standing infrastructure deficiencies.
Planning documents outline the renovation of a station on the Lexington Avenue Line and another on the Eighth Avenue Line. Upgrades include platform slab replacement, stair rehabilitation, wall tile renewal, and comprehensive painting. Additional work will involve repairing steel columns and beams, restoring concrete in walls and ceilings, improving drainage, and mitigating leaks in stations and ventilator structures. Depending on final designs, the project’s scope could also include partial track replacements.
At 28 other stations, officials will direct state-of-good-repair work, including structural repairs to steel and concrete, platform edge upgrades with new ADA-compliant warning strips, canopy and stair rehabilitation, waterproofing, and restoration of interior finishes. A contractor will be selected to deliver the project under a design-build contract and solicitation documents will be released in 2026.
Officials at the Sacramento Municipal Utility District (SMUD) in California will soon launch a grid resilience project designed to prevent energy outages and implement system hardening measures. The $78 million program is a cornerstone of SMUD’s long-term strategy to deliver reliable, climate-resilient power to its customers.
The program is designed to strengthen the electric distribution system against fire-related risks and extreme weather events. Scope elements include replacing outdated live-front network protectors with safer dead-front equipment and installing up to 192 new network transformers and protectors. Work will include replacing overhead utility lines with up to 400,000 circuit feet of underground cable, removing overhead exposure and limiting fault conditions that could spark wildfires. The upgrades will improve safety, reduce outage frequency, and add resilience to SMUD’s downtown and network distribution areas. Design and planning are currently underway. Construction is scheduled to begin in 2026.
Officials at Dallas Water Utilities in Texas are planning a $333 million project to address per- and polyfluoroalkyl substances (PFAS) at the Bachman Water Treatment Plant, a facility serving the city’s drinking water system. Once complete, the project will provide Dallas residents with enhanced water quality safeguards and ensure that the facility meets new federal regulatory requirements.
The project scope includes a PFAS assessment to integrate enhanced monitoring of source water from the Elm Fork of the Trinity River, where recent sampling has detected concentrations near or below federal maximum contaminant levels. The construction phase will deliver new granular-activated carbon gravity contactors with the capability of treating 150 million gallons per day. The city expects to publish a preliminary engineering services RFQ in Spring 2026, with construction to follow.
Officials at Port Tampa Bay are planning a $37 million project to expand the East Port Omniport in Florida. The planned work will modernize an underutilized dock and yard while making the port capable of handling larger, deep-draft vessels. Once finished, the expansion will improve supply chain efficiency and support the region’s long-term economic growth. The project includes expanding the Omniport facility to 27 acres with a 675-foot wharf able to berth ships over 800 feet long. The new berth will be built to accommodate a wide variety of cargoes, from lumber, bagged cement, and bulk aggregates for road building to containerized freight such as solar panels, batteries, and steel for renewable energy projects.
The 2026 capital plan allocates $283.4 million, with an additional $157 million provided to supplement the different components of the project. With design and site selection underway, construction is expected to begin within the next few years.
Large capital-intensive initiatives, such as the ones outlined, are representative of collaborative opportunities that will soon be available throughout the U.S. While there is some uncertainty related to federal funding, it appears that elected officials nationwide remain committed to modernizing America’s infrastructure and protecting public assets through sustainability initiatives — even if state and local entities must lead the way.
Photo by ITB495, CC BY 2.0 https://creativecommons.org/licenses/by/2.0, from Wikimedia Commons (The image was flipped)