Highway costs outweigh benefits, especially when land value is considered

Highway expansion projects rarely deliver the time-saving benefits that policymakers promise. Adding more lanes generally leads to increased demand, more congestion, and higher emissions. A new study finds that economically, these projects usually fall short by about 17% of their projected benefits, and costs are significantly higher when land use is factored into the equation. Due to the historical inefficiencies and limited effectiveness of highway projects in achieving their economic goals, prioritizing transit could lead to greater sustainability and efficiency. While transit projects also can be costly, they often provide more sustainable and long-term travel solutions when compared to highways.  

Investments in DOT staff can lower project costs

State transportation agencies, like other public and private organizations, have struggled with limited workforce capacity. DOT leaders have long been concerned about staffing shortages and their ability to retain quality employees, especially in response to increased funding provided by the IIJA. A new study crystalizes that concern, finding that the staffing issues faced by DOTs may be costing states in the long run by driving up the price tag on highway projects. Investing in more and higher-quality staff can help avoid delays and associated cost increases.