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Indiana spent $46M per interstate centerline mile in FY2026 as construction costs surged

Indiana Capital Chronicle reported Oct. 2, 2026 that Indiana spent an average of $46 million to construct a centerline mile of interstate highway in the 2026 state fiscal year, up nearly 450% from the $8.4 million average in FY2015. The story cites material-price gains, federal cost-index increases and project scale as drivers.

BUSINESSINDY BRIEFPublished October 2, 2026 at 5:03 AM EDTLiving story · 2 sources
AI-generated illustration of the topic: Indiana spent $46M per interstate centerline mile in FY2026 as construction costs surged
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Indiana Capital Chronicle reported Oct. 2, 2026 that the Indiana Department of Transportation’s FY2026 average construction cost was $46 million per centerline mile. The article says that centerline-mile figures reflect full reconstruction or added travel lanes and include lane replacements and additions, widened and rebuilt shoulders, barrier walls and guardrails, traffic and drainage control, materials and labor.

The article attributes higher costs to several factors cited by sources: the Federal Highway Administration’s national highway construction cost index rose more than 60% from 2020 through 2025; major interstate and bridge work has seen big steel and concrete price increases; and project scale and location raise costs, per industry expert Brian Gould and INDOT spokeswoman Natalie Garrett. INDOT told the Chronicle it uses project bundling, alternative delivery methods, competitive bidding and 20-year asset-management plans; the FY2026 average included Revive I-70 (Wayne County) and Safer Drive 65 (Scott and Clark counties).

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