Lawmakers question $1 billion new highway as INDOT cancels over 300 road projects

INDIANA A growing rift is forming between the Indiana Department of Transportation (INDOT) and state lawmakers over how to prioritize the state’s dwindling infrastructure budget.

On Monday, Jan. 5, INDOT officials confirmed that “funding constraints” have forced the agency to cancel or postpone more than 300 road and bridge projects over the last 18 months—a number that continues to climb. Despite these cuts, the state is moving forward with the controversial Mid-States Corridor, a brand-new highway in Southern Indiana with a price tag exceeding $1 billion.

State Rep. Jim Pressel (R-Rolling Prairie), chairman of the House Roads and Transportation Committee, expressed sharp disbelief during a hearing this week after INDOT Legislative Director Aaron Wainscott confirmed that construction on the Mid-States Corridor could begin as early as next year.

State Rep. Jim Pressell (R-Rolling Prairie)

“We canceled over 300 projects in the last year and a half, but we’re going to spend a billion dollars on a brand-new roadway,” Pressel said. “I’m not—I’m not getting it. I’m really looking for some guidance on how we’re doing this, but yet we’re killing other projects.”

INDOT Legislative Director Aaron Wainscott

Wainscott noted that even “priority initiatives” are being trimmed. For example, a major interchange improvement project near Whitestown has been fractured into three smaller phases to be completed over a much longer timeline due to a lack of immediate cash flow.

The Mid-States Corridor Conflict

The Mid-States Corridor is designed to provide a “robust” link between State Road 66 and Interstate 69, passing through Jasper—the hometown of Governor Mike Braun. Supporters argue the corridor is essential for regional economic growth, but critics and property rights advocates point to the staggering cost and the loss of agricultural land.

While INDOT maintains the project is a long-term investment, current estimates for the expressway options range from $1.08 billion to as high as $3.4 billion when factoring in land acquisition and future maintenance.

To address the funding gap, INDOT revealed it has officially applied for federal approval to implement tolling on Interstate 70.

GOP lawmakers are promoting tolling as a necessary supplement to the state’s 36-cents-per-gallon gasoline tax, which has become a less reliable revenue source as vehicles become more fuel-efficient. Under proposed rates, traveling the 150-mile stretch of I-70 between Terre Haute and Richmond could cost:

  • Passenger Vehicles: Up to $10.50
  • Semi-Trailers: Up to $57.00

INDOT cites a “perfect storm” of economic factors for the recent project delays:

  • Decreasing Gas Tax Revenue: High-efficiency and electric vehicles contribute less to the traditional road funding pot.
  • Inflation: The cost of materials like steel, asphalt, and concrete has spiked.
  • Labor Shortages: Higher wages are required to attract construction crews.