State of the State 2026: Louisiana’s Investment, Infrastructure and Economic Development Outlook

Speakers at the 2026 State of the State Luncheon, hosted by SMPS Southeast Louisiana, included Matthew H. Baker, Director of the Office of Facility Planning and Control (FP&C); Paige Carter, MBA, Executive Director of Business Development for Louisiana Economic Development (LED); and Beau Black, Deputy Secretary of the Louisiana Department of Transportation and Development (DOTD).

From Louisiana’s Capital Outlay program and public project delivery to economic development and major private investment, the conversation highlighted the scale of activity underway and the opportunities ahead for Louisiana’s architecture, engineering and construction industry.

Building Louisiana: Facility Planning and Control and Capital Outlay

Baker provided an update on the Office of Facility Planning and Control (FP&C), which oversees Louisiana’s capital construction program and administers projects from planning and designer selection through construction and closeout.

A major focus was House Bill 2 (HB2), Louisiana’s annual Capital Outlay Act. The 2026 bill received 1,934 requests, with 1,011 projects totaling approximately $14.68 billion ultimately included in the final version. FP&C also highlighted ongoing operational improvements, including updates to Construction Manager at Risk (CMAR) delivery and the rollout of Trimble Unity Construct as its enterprise project management platform.

Public Project Delivery and Legislative Changes

Design-bid-build remains the dominant delivery method, representing 94% of active FP&C projects by number. However, CMAR accounts for 37% of total active project value, reflecting its use for larger, more complex projects. Several 2026 legislative changes are also shaping public-sector opportunities. HB 315 (Act 260) increased the selection board threshold from $1 million to $2 million, while HB 887 (Act 680) updated requirements for CMAR contractor selection. HB 755 (Act 831) also established IDIQ contracting for certain renovation design services, creating another avenue for professional services firms pursuing state work.

Louisiana Economic Development: From Potential to Progress

LED has undergone a significant organizational shift, including implementing Louisiana's first statewide economic development strategic plan in 20 years. Since 2024, Louisiana has announced more than $156 billion in new capital investment and 16,200 direct new jobs. That momentum includes major investments across the state, such as Venture Global's $18 billion expansion in Plaquemines Parish and Domino Sugar's $785 million refinery modernization in St. Bernard Parish.

Looking ahead, LED reported 220 active projects representing more than $323 billion in potential capital investment and 47,000 potential new jobs, signaling continued economic growth and development opportunities across Louisiana.

Preparing Louisiana for Future Investment

Through FastSites, LED is expanding the state’s portfolio of development-ready industrial sites with support from a $200 million Site & Infrastructure Improvement Fund, helping companies move more quickly from site selection to construction.

Source Louisiana, the state’s first online business directory, is also connecting Louisiana businesses directly with project demand. More than 3,000 businesses registered during the platform’s first nine months, providing another avenue for local contractors and vendors to participate in major investments coming to the state.

What It Means for Louisiana’s AEC Industry

The message from this year’s State of the State was clear: Louisiana is investing, growing and building.

For the AEC industry, that momentum means opportunity. As public investment, infrastructure improvements and major private development continue across the state, firms that stay informed, engaged and positioned for what’s ahead will be ready to help shape Louisiana’s next chapter.

And by all indications, there is a lot more to come.