BUSINESSINDYIndianapolis Business. Explained.← Today's news
REAL ESTATE

INDOT reports interstate construction cost averaged $46M per centerline mile in FY2026, up nearly 450% since FY2015

The Indiana Capital Chronicle reported Oct. 2, 2026, that the Indiana Department of Transportation’s average cost to construct a centerline mile of interstate was $46 million in fiscal year 2026 (which ended in June), about 450% higher than the $8.4 million average in FY2015; INDOT and FHWA data cited inflation, supply-chain issues and added project complexity.

BUSINESSINDY BRIEFPublished October 2, 2026 at 5:03 AM EDTLiving story · 2 sources
AI-generated illustration of the topic: INDOT reports interstate construction cost averaged $46M per centerline mile in FY2026, up nearly 450% since FY2015
AI illustration · Not a photograph of the reported event.

The Indiana Capital Chronicle reported Oct. 2, 2026, that the Indiana Department of Transportation’s average cost to build a centerline mile of interstate was $46 million in the 2026 state fiscal year (which ended in June). A slide shown at a late-August State Budget Committee meeting compared that to a $8.4 million average in fiscal 2015 and attributed increases to inflation in material costs, supply‑chain shortages and the pandemic. INDOT spokeswoman Natalie Garrett said the FY2026 average included two complicated projects — Revive I‑70 in Wayne County and Safer Drive 65 in Scott and Clark counties.

The article reported that typical resurfacing work involves milling the top two inches of spent asphalt and replacing it with two to four inches of fresh material, and that cost calculations include lane replacements and additions, widened and rebuilt shoulders, barrier walls and guardrails, traffic and drainage control, materials and labor. Garrett said INDOT bundles projects to limit traffic impacts, competitively bids projects (generally choosing the lowest-priced proposal) and uses alternative delivery and early contractor involvement on complex work; the Federal Highway Administration’s national highway construction cost index rose by more than 60% from 2020 through 2025, the article said.

Report a correction · Editorial standards · Our source directory

BusinessIndy examines this development and its implications for Indiana businesses and communities using the linked sources.

Related coverage

Explore the topic

Reader discussion

Join the discussion. Every comment is checked before publication. Community rules and appeals