Arizona’s Infrastructure Earns a ‘C’: Growth Creates New Demands on the State’s Infrastructure

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The Arizona Section of ASCE released the 2026 Report Card for Arizona’s Infrastructure on August 11 at the Historic Senate Chambers at the Arizona State Capitol,

assigning the state an overall grade of ‘C’. The grade is unchanged from Arizona’s 2020 report card and matches the national grade in ASCE’s 2025 Report Card for America’s Infrastructure.

A ‘C’ means infrastructure is in adequate condition and meeting current needs. But adequate is not sufficient for the systems communities depend on every day. Arizona will need sustained investment and improvements in planning, maintenance, innovation, and resilience to ensure its infrastructure can support continued growth.

Arizona’s infrastructure is barely keeping pace with the state’s rapid growth. As the state’s population and economy continue to expand, infrastructure systems will face increasing demands for capacity, maintenance, and resilience.

Since 2020, two categories have improved, six have maintained the same grade, and one has declined. Arizona also evaluated energy and stormwater for the first time in 2026.

Two infrastructure categories have improved since 2020

  • Levees (C, up from C- in 2020): Levees protect hundreds of thousands of Arizonans and billions of dollars in property. The 2020 report card found that Arizona’s levees faced significant funding challenges for repairs, maintenance, and upgrades. The 2026 report continues to identify funding and aging infrastructure as concerns, but the improved grade reflects progress in the system.
  • Wastewater (C, up from C- in 2020): Wastewater also improved, even as the system faces significant demands from population growth. Arizona’s wastewater network includes more than 26,000 miles of sewer pipe and roughly 320 treatment plants. Yet an estimated 30% to 50% of collection infrastructure will require rehabilitation within the next decade, and at least a dozen treatment plants will need expansion to meet future demand.

Six categories held steady since 2020

  • Bridges (B+): Bridges continue to be one of the state’s strongest infrastructure systems. Just 1.6% of Arizona’s 8,587 bridges are rated poor, well below the national average of 6.8%. The state is also using innovative approaches such as Accelerated Bridge Construction, polymer concrete overlays, carbon-fiber strengthening, drones, and climate and hydrology modeling to improve bridge conditions and durability. Yet, Arizona faces a funding gap of roughly $500 million for bridge maintenance projects by 2029, in part because the state’s 19-cent-per-gallon fuel tax is among the lowest in the nation.
  • Dams (C-): Arizona has 380 dams, including 166 classified as high hazard. While most high-hazard dams with documented condition ratings are in satisfactory condition, 12% were rated poor as of 2025. With an estimated $460 million needed to rehabilitate non-federal dams, additional investment is needed to address aging infrastructure and protect public safety.
  • Drinking Water (C-): Water infrastructure is particularly important as Arizona manages Colorado River shortages, accelerating groundwater depletion, aging assets, and rapid population growth. Much of the state’s drinking water infrastructure was constructed between the 1950s and 1970s, while the EPA estimates more than $12 billion in drinking water infrastructure needs over the next 20 years.
  • Transit (C): Transit service is adequate in most urban regions, and projects such as the five-mile South Central Light Rail Extension are improving connectivity. However, nearly 15% of Arizona’s workforce still lacks adequate access to reliable transit, and the state has no dedicated transit funding source.
  • Rail (C): Rail infrastructure also continues to face competing demands. Freight rail is approaching capacity in some areas, while passenger rail investment and service remain limited.
  • Roads (D+): Arizona’s lowest-rated infrastructure category is roads. Fifty-four percent of major roads are rated in poor or mediocre condition, while congestion continues to grow. Phoenix commuters lose an average of 76 hours each year to congestion, while Tucson commuters lose roughly 50 hours.

Aviation was the only infrastructure category to receive a lower grade, falling from a ‘B’ in 2020 to a ‘B-’ in 2026

The decline does not mean Arizona’s airports are failing to keep pace. The state’s 67 public-use airports are currently meeting capacity demands, and pavement conditions have improved substantially. Phoenix Sky Harbor is also planning major capacity and terminal improvements, including a roughly $4 billion West Terminal expected to begin construction around 2030. However, Arizona airports still face an estimated $48 million annual shortfall for capacity and maintenance expenses through 2030, with rural airports particularly affected. Continued growth and increasing demands on the state’s aviation system will require sustained investment.

The 2026 report card also expands beyond the nine categories evaluated in 2020, adding energy and stormwater.

  • Energy (C): Arizona’s energy infrastructure benefits from strong generation capacity and growing renewable resources, but aging assets and rising demand from population growth, industry, and data centers are placing new strains on the grid. Continued investment in modernization, storage, and resilience will be critical to maintaining a reliable and sustainable energy system.
  • Stormwater (C-): Stormwater systems in the state face challenges associated with aging systems, rapid development, and increasingly intense weather events. Prolonged heat and drought, wildfires, and intense flooding are placing additional strain on infrastructure and underscore the need to incorporate resilience and adaptation into infrastructure planning.

Growth is putting every grade to the test

Arizona’s overall ‘C’ grade has not changed since 2020, but the state itself has. Its population is projected to grow from 7.6 million today to 10.5 million by 2050, creating new demands for infrastructure capacity while increasing maintenance needs for existing systems.

The report identifies five priorities for raising Arizona’s infrastructure grades:

  • Investment: Increased investment from the IIJA has begun to close the funding gap in Arizona. With the IIJA sunsetting in 2026, continued investment is needed across all sectors of infrastructure to continue to make much needed improvements. Sustained funding will ensure our most critical systems, like drinking water, bridges, roads, dams, and more can continue safe operations across Arizona.
  • Maintenance: With the focus on increasing capacity, Arizona’s critical systems are aging and not receiving needed maintenance to fulfill their life cycle. Maintaining existing assets should be prioritized in future infrastructure planning.
  • Innovation: Modern technology has led to new innovations and can bring much needed updates to the state’s infrastructure, such as different delivery methods, new materials, and smart technology. The public and private sectors will need to be open to new ideas to deliver projects more efficiently and cost effectively.
  • Resilience and Adaptation: Arizona is facing more environmental challenges than ever before. Prolonged heat and drought have led to more wildfires and intense flooding. Incorporating resilience and adaptation in design and maintenance of infrastructure assets is needed to keep up with growth.
  • Geographic Parity: Funding is stretched across the state, but it is especially stretched in Arizona’s rural communities. Investment and modernization of assets in rural communities is necessary to maintain safe infrastructure for its entire life cycle.

Federal infrastructure funding through the Infrastructure Investment and Jobs Act has helped address some of Arizona’s infrastructure needs, but continued investment will be necessary as that funding sunsets. At the same time, maintaining existing assets must remain a priority alongside expanding capacity.

The 2026 Report Card for Arizona’s Infrastructure evaluates 11 categories: aviation, bridges, dams, drinking water, energy, levees, rail, roads, stormwater, transit, and wastewater. The report is a public service intended to inform residents and policymakers about the condition and needs of Arizona’s infrastructure and identify solutions for raising the grades.

 

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