Five reasons infrastructure costs are spiking

State DOTs face a $86 billion shortfall over the next 10 years.

1 minute read

April 20, 2026, 9:00 AM PDT

By Diana Ionescu @aworkoffiction


Tall bridge or overpass under construction.

Growing maintenance backlogs, ballooning material and labor costs and administrative delays all contribute to higher project costs. | Dennis MacDonald / Shutterstock

In an article in Governing republished from Pew, Fatima Yousofi and Eli Gullett outline the top five factors driving up the cost of roads, bridges and other transportation infrastructure projects.

One major factor is a growing maintenance backlog as states' investment in infrastructure has declined since the early 2000s. "In total, states and localities have underinvested in maintaining roads and bridges by about $105 billion." A second key reason costs are rising is the eroding value of every invested dollar as material and labor costs go up while transportation funding remains relatively flat.

Other factors include administrative delays and long permitting processes, staffing limitations at state DOTs and inconsistent data that limits states' understanding of their assets and needs. 

The researchers suggest that states should prioritize maintenance, strengthen data and transparency, take full advantage of federal resources and improve staffing and expertise at state DOTs, which can reduce reliance on outside consultants.

Wednesday, April 15, 2026 in Governing

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