The highway, damaged during the September 2008 hurricane, is an evacuation route for Galveston and Brazoria County, including Surfside, Freeport and Angleton.
Perry's office says damage to the roadway and adjoining sand dune system has placed more than 2,600 acres of marshland and tidal habitat at risk of erosion and overwash.
The General Land Office will oversee the project, including restoration of the nearby natural beach and sand dune system.
