North Carolina’s 2026 Infrastructure Report Card: Grades, Challenges & Path Forward

North Carolina Earns a C-

On Wednesday, January 21, the North Carolina Section of the American Society of Civil Engineers (ASCE) released its 2026 Report Card for North Carolina’s Infrastructure at the North Carolina State University Club in Raleigh. This release represents the state’s first modern report card and gave the state’s infrastructure a ‘C-’ across seven categories. The North Carolina Infrastructure Report Card highlighted several areas where the state outperforms the national average, though the overall grade is lower than the national average grade of ‘C’.

What a ‘C-‘ means

The grade of ‘C-’ is a mediocre rating, indicating a need for improvement across areas of funding, operations and maintenance, and capacity as the state’s population surges. Recent extreme weather and safety disruptions, including Tropical Storm Helene, underscore the need for resilient, modern infrastructure.

Categories Where North Carolina Outperforms National Grades

Four of the seven categories in the North Carolina Infrastructure Report Card are performing higher than their national counterparts:

Aviation (C-)

North Carolina’s 72 public airports form a statewide network linking residents to 188 destinations and generating $88 billion in economic impact—14.4% of the state’s GDP. After a pandemic‑era dip, passenger traffic has surged, rising about 20% from 2021 to 2023 and straining capacity, especially at Raleigh‑Durham. Targeted investments in capacity, maintenance, air traffic control, and critical upgrades will be essential to keep the system safe, efficient, and prepared for future growth.

Drinking Water (C+)

North Carolina’s growing population and frequent natural disasters make reliable, resilient drinking water systems essential—an urgency underscored by the damage from Tropical Storm Helene in 2024. Utilities are also grappling with rising concerns over PFAS and other “forever chemicals,” which pose health risks and require costly, complex treatment. While the state has long benefited from a highly skilled workforce of licensed water‑system operators, many are nearing retirement. To maintain safe, clean drinking water, North Carolina will need sustained investment in infrastructure and a renewed focus on attracting, training, and retaining the next generation of utility professionals.

Roads (C-)

North Carolina’s 80,000-plus lane miles are essential to mobility and commerce, but the system is increasingly strained by aging assets, rising vehicle miles traveled, and inflation. Nearly two‑thirds of state roads are now rated only “fair,” signaling widespread resurfacing and reconstruction needs within the next decade. At the same time, traditional funding sources, especially the motor fuels tax, are weakening as vehicles become more fuel‑efficient and electric vehicle adoption grows. Strengthening the state’s road network will require sustainable funding reforms, greater investment in resilience, and expanded safety initiatives.

Stormwater (C-)

North Carolina’s 101 stormwater utilities serve roughly half the state’s population, yet many face growing challenges as development outpaces funding. Utilities report more than $2.76 billion in unmet capital needs through 2034, with over 80% citing significant gaps. The state has expanded outreach and mapping programs to help residents understand flood risks—an important step as 22% of structures that have flooded since 1996 are prone to repeated flooding. Long‑term, predictable investment will be essential to expand capacity, protect public safety, and strengthen resilience statewide

Categories Matching National Grades

Two of the seven categories received the same grade as their national counterparts:

Dams (D+)

North Carolina has 7,448 dams, including 2,350 that are state‑regulated and essential for water supply, flood control, irrigation, and recreation. Since 2023, more than 83% of the state’s jurisdictional high‑hazard dams have received annual inspections, but only 45% have current Emergency Action Plans—well below the 82% national average. While funding for dam safety has grown and additional resources are expected following recent tropical storm damage, major gaps remain. Overall, the state faces an estimated $5.97 billion backlog for dam maintenance and repairs, nearly $2.83 billion of which is needed for high‑hazard dams alone.

Wastewater (D+)

As North Carolina grows, pressure on wastewater systems is rising. Wake and Mecklenburg counties are planning major expansions and new treatment plants to keep pace with development, while smaller utilities face shrinking customer bases and higher financial strain as populations shift toward larger cities. Many small systems have had to raise sewer rates just to maintain aging infrastructure. The 2022 EPA Clean Watersheds Needs Survey identified roughly $12.6 billion in statewide wastewater and sewer needs. Despite recent funding boosts, a significant shortfall remains, and utilities are increasingly emphasizing higher user rates to meet operational and maintenance demands.

Category Where North Carolina Lags Behind

One category received a lower grade than the national report card

Bridges (C-)

North Carolina manages nearly 13,900 bridges, with conditions in 2024 split between 46% good, 46% fair, and 8% poor—down sharply from 22.8% a decade ago thanks to major investments in replacement, preservation, and maintenance. Funding has grown from $150 million in FY2015 to $482 million in FY2025, yet aging infrastructure remains a challenge, with more than 4,800 bridges over 50 years old and over 6,300 expected by 2035. Future needs are rising fast: bridge funding is projected to reach $961 million by FY2027, leaving a $479 million shortfall and widening gaps in the years ahead.

Key Recommendations for Improving the Grade

ASCE has five recommendations to increase the grade in North Carolina