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Indiana DOT figures show rising interstate construction costs are inflating state projects

The Indiana Capital Chronicle reported on Oct. 2, 2026 that INDOT’s FY2026 average cost per centerline mile is substantially higher than in 2015 and that the FHWA national highway construction cost index rose more than 60% from 2020–2025. INDOT attributed increases to project complexity, material-price rises and large-capacity work included in the FY2026 mix.

BUSINESSINDY BRIEFPublished October 2, 2026 at 5:03 AM EDTLiving story · 2 sources
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The Indiana Capital Chronicle reported Oct. 2, 2026 that INDOT’s reported average cost to build a centerline mile of interstate in fiscal year 2026 is materially higher than the agency’s 2015 average. The article says INDOT’s FY2026 figure includes large-capacity projects such as Revive I‑70 and Safer Drive 65 and counts lane work, shoulders, barrier walls/guardrails, traffic and drainage control, materials and labor in its per‑mile totals.

The article also cites a Federal Highway Administration national highway construction cost index that rose over 60% from 2020 through 2025, and quotes INDOT spokeswoman Natalie Garrett on factors adding cost — including maintenance‑of‑traffic complexity on major projects, INDOT’s practice of bundling contracts, use of 20‑year asset‑management planning and alternative delivery methods. The piece notes projects are competitively bid and that Sen. Fady Qaddoura reacted to the figures by saying, “That’s unbelievable.”

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