A simple google search returns these projects.
To say that such things are NOT happening is wrong, and the evidence is quite obvious if one happens to drive freeways in any major city.
However what it really comes down to is the overwhelming "progress" in cities that focuses on only inefficient automobile use as the only form of transportation within the cities... however marginal, if any focus was geared toward the bicycle as regular transportation, the offset of even a few percent decrease in auto traffic can render such highway projects moot.
But transportation dollars are NOT typically spent on cycling as a means of transit (primarily park and rec funds are used for simple paths) yet queuing theory and actual demonstrations (such as the LA Olympics) have shown that freeway traffic relief can be achieved by only marginal changes in percent of that traffic.
Such marginal changes can be achieved by encouraging other forms of transit such as cycling and the use of mass transit.
Cycling, like the use of the individual auto, offers the advantage of individual time and destination travel... with cycling actually offering direct door to door service.
Highway traffic studies, on the other hand, show only marginal and declining improvements for each additional added lane on a typical freeway.
If you want specific citing go read "Traffic: Why We Drive the Way We Do (and What It Says About Us)" by Tom Vanderbilt. It is probably in a local library near you.