Well it means the seizure of one heck of a lot of land. They are not planning a mere road. The Texas segment of the project is called the "Trans Texas Corridor" and is proposed to include a wide strip land on either side which will be used for economic development along the road.
It's a huge vanity project for the Govenor. I don't know if any other states have bought into this NAFT superhighway idea (which was supposed to create a corridor all the way to Canada). Texas has a political faction that has bought into it in a big way though.
Yup. Texas has a lot of republican legislooters that used to be democrats (for instance, Gov. Perry) who are committed to the concept of "crony capitalism".