Inflation Threatens to Erode Impact of $1 Trillion Infrastructure Law

Rising prices and snarled supply chains are poised to blunt the impact of the $1 trillion infrastructure law Congress passed with bipartisan support last year.

How many roads, bridges, railways, fiber optic lines and other types of infrastructure the U.S. can build or fix under the law—a central accomplishment of President Biden’s that experts say is a generational investment—will largely hinge on the extent of increases in everything from the cost of diesel fuel to workers’ wages.

Elevated costs for materials and labor are already pushing contractors to charge more for construction projects, government data...