As a crucial freight corridor for the nation’s commerce, the eastern Midwest is experiencing major infrastructure investments to keep goods moving. Illinois, Indiana, Kentucky, and Ohio are directing significant resources toward modernizing transportation networks, alleviating freight chokepoints, reducing traffic congestion, and increasing safety.
Over the past three years, the departments of transportation in these four states collectively awarded over $24.5 billion in projects, significantly impacting the construction and transportation industries. Increased investment is fueling demand for skilled labor, construction materials, and engineering expertise, while also putting pressure on supply chains and regulatory processes.
Last year Illinois unveiled the largest multi-year construction program in state history, a $41.42 billion blueprint to fix and modernize infrastructure over six years. The plan eclipsed the previous record set in 2023 and touches every Illinois county and all modes of transportation, with $29.65 billion for roads and bridges, $7.5 billion for transit, $2.54 billion for freight and passenger rail, $1.57 billion for aviation, and $160 million for ports and waterways.
The historic investment comes in the sixth year of the Rebuild Illinois capital plan, which has invested over $25 billion in the state’s roads and bridges, creating economic opportunity and improving infrastructure while enhancing safety and quality of life throughout the state.
Because of Rebuild Illinois, the state was well-positioned to secure funds from the Infrastructure Investment and Jobs Act (IIJA) and has so far been awarded $2.8 billion via competitive grant opportunities, some of which helped move major projects into construction.
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Key Projects
- I-80 Reconstruction: This $1.3 billion investment will improve the safety and operation of aging infrastructure, including approximately 16 miles of interstate with 30 bridges through three counties and six municipalities.
- Chicago Region Environmental and Transportation Efficiency Program: Federal grants, as well as a combined investment of $485.3 million from other public partners and the freight railroads, are accelerating improvements to the 75th Street Corridor Improvement project, the largest rail chokepoint in the Chicago, Illinois, region.
- I-57/I-74 Interchange Reconstruction: The culmination of several projects to rebuild Champaign, Illinois’ regional freight juncture, the $251.8 million interchange project will improve travel time and reduce conflict points.
When looking at the firms awarded Illinois transportation projects over the last three years, the top 20 contractors have won the majority of jobs (57 percent). The difference between first- and second-place bidders averages 12 percent.
Dubbed the Crossroads of America, Indiana serves as a major freight thoroughfare, with freight flow expected to keep growing exponentially. Indiana offers the nation’s only statewide international port system through access to the Great Lakes and the Ohio-Mississippi river system, along with major airports and the world’s second-largest FedEx hub.
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With easy access to the country’s agricultural heartland, Indiana also serves as a major route for farm goods. However, limited rail access in rural areas forces reliance on trucking, and many of the state’s aging rural roads and bridges are not designed for the increased volume and weight of modern vehicles, particularly those used in agricultural transport.
Because efficient movement of freight is crucial for Indiana’s economy, state and federal investments are working to overcome bottlenecks and improve safety.
Key Projects
- I-69 Ohio River Crossing: Estimated at almost $1.4 billion, this bi-state project will build a new, four-lane river bridge connecting Evansville, Indiana, and Henderson, Kentucky. Work is underway on the $202 million section covering Indiana’s approach roadways and bridges.
- Revive I-70: This $1 billion project, divided into three contracts because of the scope of work, will improve 20 miles of interstate in Wayne County.
- I-65 Safety and Efficiency: A $112.7 million project to improve traffic flow and safety along 5 miles of interstate on the southeast side of Indianapolis, Indiana.
Indiana’s 20 winningest contractors over the last three years account for a whopping 80 percent of transportation project awards. The difference between first- and second-place bidders averages just 6 percent.
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Serving as the home to three global air cargo hubs, Kentucky’s aviation presence spurs the state’s economy. However, deteriorating road pavements, increasing congestion in urban centers, and high truck volumes on rural interstates create safety and traffic issues.
Thirty percent of Kentucky’s major roads are rated in poor or mediocre condition, with 7 percent of the state’s bridges rated in poor/structurally deficient condition and 41 percent of the bridges at least 50 years old.
To address those challenges, funding estimates for transportation projects in fiscal years 2025 through 2030 total nearly $9.6 billion.
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Key Projects
- Brent Spence Bridge: Anticipated to cost $3.6 billion, with $1.6 billion from Kentucky and the remainder from Ohio, this bi-state project will improve safety and travel along I-71/75, a crucial national freight corridor. The project will construct a new companion bridge across the Ohio River and improve the current bridge and adjoining roadways.
- I-69 Ohio River Crossing: Estimated at almost $1.4 billion, this bi-state project will build a new, four-lane river bridge connecting Henderson, Kentucky, and Evansville, Indiana. Work is underway on the $158 million section covering Kentucky’s approach roadways and bridges, with a 6-mile extension of I-69.
- Mountain Parkway Expansion: This $1 billion project in eastern Kentucky is designed to create a safer, more modern connection to the region. The project widens 32 miles of existing parkway, then extends the four-lane, high-speed corridor an additional 13 miles. The last two of six segments are underway.
A large majority (82 percent) of infrastructure projects awarded in Kentucky are going to the top 20 contractors in the state. The difference between first- and second-place bidders averages just 5 percent.
In the past five years, Ohio has seen major investments from Intel, Amazon, Google, Meta, Honda, PharmaVite, Anduril Industries, Joby, and other companies. The state ranks sixth in the nation in freight volume.
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Transportation funding received a significant boost in 2019 with the gas and diesel fuel tax increases. That resulted in nearly $5.4 billion of additional funds available to the Ohio Department of Transportation (ODOT) from 2020 through 2030. In addition, IIJA funding increased federal highway, bridge, and transit funding in the state by approximately 30 percent.
That combination of additional state and federal funding allowed numerous projects to move forward. In 2024, ODOT invested a record $2.71 billion into nearly 900 projects across the state. Although the majority of investments go to roads and bridges, the state sees an increasing demand for infrastructure to support walking and biking, as well as transit in rural areas.
Key Projects
- Brent Spence Bridge: Anticipated to cost $3.6 billion, with $2 billion from Ohio and the remainder from Kentucky, this bi-state project will improve safety and travel along I-71/75, a crucial national freight corridor. The project will construct a new companion bridge across the Ohio River and improve the current bridge and adjoining roadways.
- I-70/I-71 Downtown Ramp Up: This $1.4 billion mega project is reconstructing the interstate in downtown Columbus, Ohio, to alleviate safety and congestion problems. Approximately $600 million of work is underway, with $400 million in projects already completed.
- Mill Creek Expressway: Split into 14 phases with some already complete, this Hamilton County project is widening and resurfacing I-75 and making interchange improvements. Total cost is estimated at $550 million to $650 million.
In Ohio, the top 20 contractors in the last three years account for 77 percent of project awards. The difference between first- and second-place bidders averages 10 percent.
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Infrastructure investments in the eastern Midwest are critical to sustaining regional economic growth and efficient nationwide freight transport.
While these projects offer new business opportunities, they also present challenges related to material costs, labor shortages, and regulatory complexities. Addressing these issues through workforce development, supply chain resilience, and technological innovation will be key to ensuring the long-term benefits of infrastructure spending in the region.
Editor’s Note: Graphics are based on analysis of data from state department of transportation project awards.
