Following last year’s record USD 11bn deal for the SR 400 highway in Georgia, the typically unhurried P3 industry seems to finally be developing some positive momentum. Despite uncertainty around an expansion of federal support for project finance, industry experts told Infralogic’s Eugene Gilligan that a strong US economy and favorable market conditions mean they’re upbeat for strong deal activity in 2026.

Predicting the future can sometimes be a hazardous undertaking when considering the prospects of infrastructure public private partnerships (P3) and other ‘core’ infrastructure investments.

Projects that seemed to be on the fast track can suddenly be derailed by government budget shortfalls, public opposition, and a change in government administration.

While these pitfalls are always a possibility, there is a consensus emerging among the experts consulted for this piece that P3s and broader private infrastructure investment have received a more favorable reception in recent years, and the positive momentum may continue.

“Generally speaking, the political winds are blowing in favor of private sector investment in public infrastructure, both at the federal and state level,” said Michael Lexton, principal at advisory firm Lexton Infrastructure Solutions. “There are a number of big projects in procurement right now that will likely come to commercial and financial close in 2026.”

The Trump administration seems welcoming to P3s, said one executive.

“The current administration in [Washington] DC seems to be pretty pro P3, or at least private sector involvement,” said Steven DeWitt, CEO of ACS Infrastructure. “So, we see projects like the Penn Station redevelopment and others that are seeing some movement.”

Highways drive P3s forward

P3 optimism has been spurred by Georgia’s USD 11bn SR 400 Express Lane project, which reached financial close in August 2025. The project financing involved a USD 3.4bn Private Activity Bond (PAB) issuance, and a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan of almost USD 3.9bn.

The SR 400 Peach Partners Consortium paid a USD 3.8bn concession fee to the Georgia Department of Transportation.

This year will see some managed lanes project procurements advance, said DeWitt,  whose firm formed part of the SR 400 Peach Partners Consortium.

“Georgia, with the success they have had on SR 400, is moving forward with their next project, I-285 East, and we are deep into that procurement,” DeWitt said. “Tennessee is moving forward on I-24, and we are deep into that procurement. North Carolina has I-77, and there are other states that are talking about these same kinds of projects. Florida has been rather open that they’ve got a list they are vetting to see if it makes sense for them.”

Other states getting in on the action

While the SR 400 has unique characteristics, it may provide a measuring stick for other state DOTs as new jurisdictions leverage the public-private partnership model.

“SR 400 in Georgia is a really good benchmark for what is possible,” DeWitt said. “Not every project will be an SR 400 with a huge concession payment. The state was able to move a major project like that forward, in a world where money is not falling out of the sky. There are constraints across the country with transportation funding, and these kinds of approaches can really help move some of these major projects.”

Another state to watch this year is Maryland, DeWitt said, noting that the USDOT’s issuance of a Request for Information (RFI) in December 2025 for the American Legion Bridge, seeking “innovative project delivery methods” for the project.

“It’s a Maryland project, not a USDOT project, but if USDOT’s efforts help them find a solution, that’s great. There is certainly the opportunity for additional managed lanes projects along I-295, I-270 and I-495 in the DC area,” DeWitt added.

Virginia also bears watching, he said.

“Virginia has the right leadership in place. What they do on I-495 along the southern part of Washington DC does depend on what Maryland does on the Woodrow Wilson Bridge, although there may be other projects they are thinking about in the background,” he added.

Positive experiences with P3s and managed lanes have been a benefit for encouraging more US projects, according to Andrés Sacristán, CEO of Cintra, a Ferrovial company.

“We are now coming to the 10^th anniversary of our projects in Dallas-Fort Worth,” Sacristán said. “If you rewind 10 years, P3s were more of a concept or an idea, but we have proven to be a reliable partner, delivering projects on time, if not ahead of time, and on budget. The reality and the benefits of P3 projects, like the TEXpress Lanes, are seen.”

P3s in the airport sector could also enjoy a strong year, Lexton said.

“I see a pathway for more airport privatization, due to the success of the transformation of LaGuardia Airport and the projects that are proceeding at JFK and elsewhere,” he said. “In fact, private sector airport operators and investors are looking at the viability of full privatization through the federal Airport Investment Partnership Program (AIPP).”

As of February 2026, there are two approved airports in the Federal program: the operational Luís Muñoz Marín International Airport in San Juan, Puerto Rico, and the in-development Hendry County Airglades Airport in Hendry County, Florida.

Other airport projects in the works include the Washington Dulles International Airport Revitalization project and Illinois’ South Suburban Airport (SSA). A variety of public-private partnership investors, developers, and advisors recently responded to an RFI as part of the ongoing procurement process for Dulles. However, despite the Illinois Department of Transportation issuing a request for qualifications for the SSA in August 2024, no further information has been forthcoming regarding that project.

“Outside of transportation, public buildings, educational facilities and healthcare facilities all seem to have tailwinds, as well,” Lexton said.

Favorable transaction environment

Infrastructure investors have some positive metrics on their side, said Mark Williamson, a senior managing director at investment bank Evercore.

“We have reached a new high watermark in terms of raising capital this last year, and investors have ample dry power to deploy,” Williamson said. “Underpinning market sentiment is the economy and interest rates. Interest rates are generally constructive, and the economy is generally healthy. All the elements are in place for it to be a tremendous year in 2026, whether it’s financing, M&A, recapitalizations, GP-led recapitalizations of portfolio companies or otherwise.”

David Cibrian, co-founder and managing partner or American Triple I (ATI), agrees that there are positive indicators for fundraising activity.

“On the fundraising side of things, I think we’re finally seeing a thaw in what has been a frozen tundra of fundraising over the last four or five years, post-pandemic,” Cibrian said. “Part of what is driving that is we are seeing the definitional boundaries of infrastructure expand, they’re broadening. That is coming in part from the LPs, who are increasingly demanding that investors look beyond traditional infrastructure, of airports and roads, and look at things more in depth, such as the circular economy, how to manage waste.”

“We are significantly involved right now in water-oriented opportunities, water treatment, things of that nature,” Cibrian said. “We will continue to pursue those opportunities.”

ATI will continue its focus on transportation opportunities, Cibrian said.

“There is also digital, and not necessarily the race into the data center room, which has gotten quite crowded, but we are attentive to what needs to happen around the data centers from the standpoint of supporting infrastructure –energy/grid resiliency, water,” Cibrian said.

Inflation ‘not gone’

While there are many positive markers for P3s, some concerns exist.

“Inflation is certainly in a lot better place, but it is not gone,” DeWitt said. “And there are variables, like the impacts of tariffs, of immigration, of labor availability, and other things that could drive up costs. We are watching those things.”

Allocations of PABs, which have played a crucial role in financing transportation P3s, is also being watched closely by the industry.

“Federal issues could be constraining,” Lexton said. “I don’t think we will get long-term surface transportation reauthorization passed by September 30, because nothing seems to move quickly through Congress these days, even though it’s a bipartisan issue. Hopefully, with a continuing resolution, there will be an increase in PABs allocation.”

PABs are right up against their limit, Lexton noted.

“However, if tax-exempt financing isn’t available, interest rates might be accommodating, so the alternative is to borrow in the taxable market,” he said. “While taxable debt is more expensive, hopefully, it is not unaffordable.

Technological advances

This year may reveal more about the role that new technologies will play in P3 and core infrastructure projects, whether that is autonomous vehicles, smart highway monitoring systems, and vertiports.

“There are two sides of technology that we use these days,” Sacristán said. “One is the internal side that we use to better understand user behavior through data. Good data combined with AI tools help us better understand customer behavior. The reliability of our forecasts are much better than they were five or ten years ago.”

Roads are also getting smarter, Sacristán said.

“We have some pilots and programs to deploy sensors in the road. Our subsidiary, NextMove, has an app called NextPass that acts as a transponder, and is the most used app for tolling in the US. Regarding autonomous vehicles, I think there is an acceleration. The use of autonomous vehicles with AI capabilities will become greater and we’ll see more VMTs driven.”

“The technology of tomorrow is almost here,” DeWitt said.

“We have a pilot Autonomous Transit Network Pilot project in Atlanta unfolding this year, with operations beginning toward the end of the year, first part of next year,” DeWitt said. “We are also investors in Skyports, a vertiport developer. They are building the first ones in the Middle East and in Manhattan, where they have taken over an existing heliport asset.”

The efficient deployment of new technology by infrastructure investors can boost investment returns, Williamson said.

“Infrastructure investors control and own assets that can benefit from the leverage of the newest technologies, particularly once they are proven and demonstrate performance.” Williamson said. “Infrastructure investors are particularly adept at capital investment decision making and will rationally deploy technology assets into assets to improve the provision of service, increase utilization, and accelerate financial performance, which will ultimately enhance their financial returns.”

[Editor’s note: The 16th paragraph has been amended post-publication to clarify that Andrés Sacristán is the CEO of Cintra, a Ferrovial company.]