Rising Costs Threaten TxDOT’s $85 Billion Highway-Building Plans

Texas Transportation Commissioners must have a hangover—backing off its highway building ambitions just a few months after approving the $85 billion Unified Transportation Plan in August 2022.

2 minute read

January 3, 2023, 7:00 AM PST

By James Brasuell @CasualBrasuell


A view of Houston's freeways, with downtown in the background.

Trong Nguyen / Shutterstock

Just a few months after approving $85 billion in road building projects as part of a ten-year Unified Transportation Plan approved in August, Texas Transportation Commission officials warned the public that some of the state’s massive highway building plans might have to wait.

“Rising labor and material costs prompted a warning from the Texas Transportation Commission Tuesday that some highway projects could have to wait,” reports Dug Begley in a paywalled article for the Houston Chronicle. Inflation is already pushing the cost of some of the projects in the Unified Transportation Plan by more than 30 percent, according to commissioners and data cited in the article.

“For November the state's highway cost index — which tracks the average cost of materials and labor based on recent bids on construction work — was 31.3 percent higher than it was a year ago and 37.5 percent above November 2019,” writes Begley.

Transportation Commissioner Alvin New is quoted in the article suggesting that there might be a point where the state finally has to say “no” to road building projects. Despite the sudden sobriety on the Texas Transportation Commission, the state did recently decided to move forward with the controversial North Houston Highway Improvement Project to widen Interstate 45 in Houston.

The source article below digs into more detail about the potential risks of building too much, too fast as a response to inflation, and what the state stands to lose if inflation takes a chunk out of the plan.

Wednesday, December 14, 2022 in Houston Chronicle

Aerial view of snowy single-family homes in suburban Long Island, New York

New York Governor Advances Housing Plan Amid Stiff Suburban Opposition

Governor Kathy Hochul’s ambitious proposal to create more housing has once again run into a brick wall of opposition in New York’s enormous suburbs, especially on Long Island. This year, however, the wall may have some cracks.

March 20, 2023 - Mark H. McNulty

Large historic homes and white picket fences line a street.

The End of Single-Family Zoning in Arlington County, Virginia

Arlington County is the latest jurisdiction in the country to effectively end single-family zoning.

March 23, 2023 - The Washington Post

Dilapidated vacant wood slat house painted white in Louisiana

The Quiet Housing Crisis in Rural America

While housing shortages in major cities are grabbing headlines, rural communities are seeing higher rates of growth in housing prices and a silently spreading homelessness crisis.

March 20, 2023 - The Daily Yonder

Aerial view of desalination plant in Carlsbad, California

Federal Loan to Support San Diego Desalination Plant Overhaul

The financing will go toward funding an updated cooling system and ensuring the protection of local marine life.

March 28 - The San Diego Union-Tribune

Buses in downtown Seattle on the dedicated 3rd Avenue bus lanes

Seattle Bus Lane Cameras Capture Over 100,000 Violations

An automated traffic enforcement pilot program caught drivers illegally using transit lanes more than 110,000 times in less than a year.

March 28 - Axios

People walking on the Camino de Santiago trail in Spain

The Joy of Walking

An essay meditating on the simple pleasures of a good walk.

March 28 - The New York Times

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

HUD’s 2023 Innovative Housing Showcase

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.