The city of Carmel, which had been counting on landing a federal grant to help fund a proposed $31.9 million overhaul of the 96th Street and Keystone Avenue intersection, once again was not picked.
The condition of Indiana's roads and how to raise enough money to maintain them has emerged as a volatile political issue.
Indiana Gov. Mike Pence is proposing a $1 billion boost in state highway funding over four years. He said the added spending on roads and bridges could be accomplished without raising taxes.
The Republican governor's announcement scheduled for Tuesday afternoon comes amid recent political sparring with Democrats over state highway conditions.
Finishing the proposed extension of Interstate 69 from Bloomington to Indianapolis was one of about 75 projects the industry sector pushed for in a strategic plan released Wednesday.
Brooks Construction said in a letter to INDOT that it would not "accept legal responsibility for an industry problem caused by INDOT's specifications and quality assurance program."
The agency in a letter Friday to Fort Wayne-based Brooks Construction Co. gave the company one week to commit to returning the money or replacing three miles of the Hoosier Heartland Highway near Logansport that was completed in 2012.
The motion added to the mounting obstacles in the way of the controversial 47-mile tollway to link Indiana and Illinois south of Chicago.
Rep. Ed Soliday, R-Valparaiso, said an outside investigation might be the only way to get answers about how the state bought $71 million in possibly defective asphalt.
The project would include two new bridges that would create an oval-shaped roundabout over Interstate 69. More than 20 residents spoke at a public meeting Thursday night, all against the project.
The bridge has been closed since Aug. 7, which has caused lengthy delays for drivers on a 52-mile detour from near Lebanon around the west side of Lafayette and West Lafayette.
A central Indiana sheriff is using a state grant to enlist other law enforcement agencies in patrolling alternate routes for traffic that has been rerouted from the closed northbound lanes of Interstate 65.
When you get off Interstate 65 at a new Greenwood exit, don't expect to find truck stops, fast-food restaurants and multiple gas stations. Warehouses and apartments won't be allowed, either.
The bridge closing on one of the state’s busiest interstates has created big traffic backups for anyone trying to travel from Indianapolis to the Chicago area.
Pence said he's supportive of discussions among lawmakers about focusing the 2017 legislative session on infrastructure.
An inspector a decade ago found that bearings at the top of the steel components that support the I-65 bridge had a significant tilt to the north that worsened when air temperatures fell.
A Friday statement from the Indiana Department of Transportation says northbound I-65 near Lafayette is closed to traffic because of more concerns about the Wildcat Creek bridge.
Interstate 65 traffic is being diverted from northbound I-65 onto U.S. 52 at Lebanon for a detour taking drivers north of Lafayette.
State highway officials remain confident the latest section of southern Indiana's Interstate 69 extension will be finished this year even though construction crews still have several miles of concrete to pour.
The Indiana Department of Transportation said Tuesday it chose five preliminary alternatives for the highway's Martinsville-to-Indianapolis segment after reviewing public input and evaluations of the 14 initial proposed routes.
