CARMEL (AP) — The federal government will pay for a larger share of U.S. 31 improvements in Hamilton County north of Indianapolis, allowing the state to save $23 million.
U.S. Transportation Secretary Ray LaHood approved increasing the federal share for the project to 90 percent from 80 percent on Tuesday.
Work is underway upgrading U.S. 31 to interstate standards and widening it to six lanes between Interstate 465 in Indianapolis and Indiana 38 north of Westfield.
The Transportation Department says the project is the first to benefit from a new provision in highway legislation that gives the agency discretion to increase the allowable federal match on critical freight projects.
The project is part of a larger U.S. 31 reconstruction between Indianapolis and South Bend. More than 6,600 trucks a day use that corridor.