INDOT says average interstate construction cost hit $46M per centerline mile in FY2026, driven by material inflation

According to an Oct. 2, 2026 report by the Indiana Capital Chronicle, Indiana spent an average of $46 million to construct a centerline mile of interstate highway in fiscal year 2026 (the fiscal year ended in June 2026). The article says that figure applies to centerline miles built as part of full reconstruction or added travel-lane projects and is up nearly 450% from the $8.4 million average recorded in FY2015. The Federal Highway Administration index was reported to have risen by more than 60% from 2020 through 2025.

The story attributes higher costs to inflation in materials, supply-chain shortages, competition from data centers for concrete, steel and asphalt, and pandemic-era effects. It notes INDOT’s practices — 20-year asset management plans, project bundling, competitive bidding and alternative delivery methods — and that INDOT’s FY2026 average included two complicated programs: Revive I-70 (Wayne County) and Safer Drive 65 (Scott and Clark counties).

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