Texas to Invest $146B in Highway Expansion

The state needs large-scale public investment.

Source : Texas DOT

November 24, 2025

Author : Patty Allen

The state of Texas is planning to spend more than $146 billion on roads and highways over the next decade. This is one of the largest state transportation budget initiatives in living memory.

The very first draft of the announcement was an extraordinary one in the history of the state. In the announcement made by Texas Governor Greg Abbott and the Texas Department of Transportation, the plan is directed toward the construction of new buildings and the complete renovation of the most heavily trafficked and congested corridors of the state.

Among the most important are the I-35 in Austin, the Katy Freeway in Houston, and the local highways serving the Dallas-Fort Worth area.

The substantial funding package targets particular bottlenecks that feature prominently on the Texas A&M Transportation Institute’s list of the top traffic trouble spots. 

Houston’s Katy Freeway is not only the most congested highway in Texas but has had improvements made to it: it has been expanded to 26 lanes.

Planners are hopeful that, with the multi-phase construction process built upon some creative engineering solutions, further extensions will provide relief to delays, although previous studies and warnings claim “induced demand” would continue to funnel traffic into growing metro areas in Texas.

In Austin, the I-35 Capital Express Central project includes new “cap-and-stitch” parks to reconnect neighborhoods, additional stormwater tunnels to manage flooding at the sunken segments, and support structures for vehicles turning to and from I-35

Even with the Austin City Council's endorsement of a $104 million project, some support structures, for instance, green deck parks, now face uncertainty due to federal funding cuts and competing priorities.

New industrial parks, like Pearland and Texas' Edge Industrial Park, are capitalizing on the expansion of I-35 to secure manufacturing and logistics opportunities. Economic experts and the Pearland Economic Development Corporation underscore a belief that better roadways enhance job growth and distribution networks, as Texas strives to enhance its economic growth.

Even with the feeling of economic optimism surrounding the state’s infrastructure push, researchers from Rutgers University and Texas A&M have warned against relying solely on highway expansion to reduce congestion. The researchers show how increased living costs, urban sprawl, and environmental factors also continuously have to be taken into account by policymakers as the road projects ramp up.

TxDOT’s Unified Transportation Program supports thousands of projects, including safety upgrades, rural access, bridge replacement, and maintenance. The plan leverages the billions already allocated to existing megaprojects, particularly the state's multi-year construction planning.

Construction is already happening, with additional contracts awarded each month. Texas’ historic investment will transform transportation, mobility, and economic opportunities across the state for decades.

Category : Department of Transportation Federal Government State Government Freeways and Highways

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