Why States Borrowed Billions for Roads That Dont Exist

The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending · Jun 28, 2026 · 7m · transcript

At least 15 states have borrowed over $15 billion for highway projects that were planned but never built. Kansas alone has $1.2 billion in outstanding debt for a turnpike corridor that remains a gravel road. Lucas and Luna trace how earmarks, optimistic traffic projections, and a 'borrow now, pay later' culture in state transportation departments create phantom infrastructure. They examine the case of Missouri's Interstate 70 rebuild — $2.3 billion in bonds issued, but only one segment actually completed. The episode unpacks the bond market's role: investors rarely check…