Texas is set to receive $3.2 billion in federal infrastructure funding over the next five years, with the bulk of the money earmarked for highway expansion, bridge repair, and rural road improvements across the state, according to an announcement from the U.S. Department of Transportation this week.
The allocation is part of the latest tranche of funding released under the federal infrastructure law, and Texas’s share is the largest of any state — reflecting both the state’s vast highway network and its rapid population growth that has strained existing transportation systems.
“Texas has more lane-miles of highway than any other state, and a lot of that infrastructure is aging fast,” said U.S. Transportation Secretary Pete Buttigieg. “This funding will help the state keep pace with growth while making roads safer for everyone.”
Texas Department of Transportation officials said the funding will support more than 200 projects statewide, including the long-awaited widening of Interstate 35 through Central Texas, bridge replacements in the Rio Grande Valley, and rural highway improvements in the Panhandle and East Texas.
The I-35 corridor, which runs from Laredo through San Antonio, Austin, and Dallas-Fort Worth, is one of the most congested highway systems in the nation. TxDOT has been planning a massive reconstruction of the Austin segment that would bury the highway below street level through downtown — a project that could cost upwards of $8 billion when complete.
“This federal funding is a critical piece of the puzzle for I-35,” said TxDOT executive director Marc Williams. “It won’t cover the whole project, but it gives us the momentum to move forward on the most urgent segments.”
The funding also includes $180 million specifically designated for electric vehicle charging infrastructure along Texas highways, supporting the state’s growing EV adoption. Rural communities will receive priority for broadband-adjacent infrastructure improvements that can support smart highway technology.
State lawmakers from both parties welcomed the announcement, though some noted that the funding still falls short of the state’s estimated $15 billion infrastructure backlog.
