Georgia road-building costs soar as fuel tax revenue dwindles
Georgia officials told a House committee that asphalt, concrete and drainage expenses have jumped dramatically since 2020, outpacing the decline in fuel-tax collections.
Testimony before the House Blue-Ribbon Study Committee on Transportation Infrastructure and Vehicle Regulation highlighted steep hikes in Georgia’s road-construction costs. Civil engineer Walt Taylor said asphalt resurfacing jumped 42% from 2020 to 2025, with interstate resurfacing up 62%. Chief engineer Meg Pirkle noted concrete drainage pipe prices rose 127% and inlet structures 196% since fiscal 2020, while the National Highway Construction Cost Index shows a 70% increase nationwide since 2021.
GDOT’s fuel-tax revenue, the primary funding source, dropped 36% after a March-May suspension, leaving a $196.6 million shortfall in May compared with the prior year. Governor Brian Kemp plans to cover the gap using the state surplus, and the General Assembly has added extra transportation money for three consecutive years, including $1.68 billion for new express lanes on I-75 in Henry County. Nevertheless, Pirkle warned that inflation-driven cost spikes compel the agency to remove projects from its statewide plan, and the committee will report its findings before the 2027 legislative session.
Why it matters
Escalating road-building costs strain Georgia’s budget and could delay critical infrastructure improvements.
In this story
