The move comes after an enthusiastic response from the State Budget Committee.
State officials say even if the revenue forecast is strong, that does not mean the state will increase its next budget.
INDOT estimates the state will need at least $150 million annually over the next 10 years to adequately maintain its roads and bridges.
Pence Thursday signed legislation authorizing the release of $400 million for transportation projects.
A new state revenue forecast predicts Indiana will take in nearly $300 million less over the next 18 months than the legislature planned.
The project is estimated to take two years to complete.
The state collected $23 million more than anticipated last month, nearly 2 percent ahead of projections.
After two separate mistakes caused more than 500 million tax dollars to be misplaced, an independent audit of the state Department of Revenue will take place.
Economic advisors tell the State Budget Committee both the Indiana and U.S. economies will grow over the next couple of years, but that growth will be slow.
Luke Kenley says he approves of a recent decision by Indiana State University leaders to roll back a proposed tuition increase for next school year.