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Outside of the interstate and railways, I am not sure what the Federal Govt has to do with the local infrastructure. Surely that should be the responsibility of the States?

It’s not that simple. For example one of the bridges most discussed in the Biden plan is the Brent Spence bridge. If you Google it it’s been in the news for its dilapidated condition and recent bad accidents. It’s absolutely critical though because so much commerce and freight crossing every day. I would imagine the bridges are owned by Ohio and Kentucky but they are also in the federal interstate so it would be federal money for state bridges, but that are part of the interstate system