The state argued Monroe County's noise ordinance was delaying construction on Interstate 69.
A panel indicates the state should prioritize four new transportation projects, including building an I-69 bridge over the Ohio River.
The state plans to upgrade State Road 37 to interstate standards by 2016.
Drivers should anticipate short-term lane closures and reduced work zone speed limits along S.R. 37.
Daviess County officials say they have seen $38 million in new investments since I-69 was opened from from Crane to Evansville.
The Interstate 69 Congressional Caucus brings together leaders from many of the states where I-69 passes through to advocate on behalf of the road.
Some property owners say Interstate 69 construction has damaged their springs and the water is no longer drinkable.
Gov. Mitch Daniels has been fast-tracking construction, but when he leaves office in January, the road will be less than half-finished.
Property owners in the path of I-69 are receiving offers from INDOT for their land and homes.