The $14.4 billion Interstate Bridge project received a federal record of decision on Wednesday, a major step that allows the project to move toward permitting, hiring a contractor and building the Interstate 5 bridge over the Columbia River.

The decision completes the project’s lengthy federal environmental review process, which encompassed not just air and water but also cultural resources, safety and freight mobility, among myriad other factors. A final environmental Impact Statement was published April 17.

Now, the real work begins.

The Interstate Bridge program is preparing a request for qualifications to be issued in coming weeks to begin selecting a contractor, setting up a high-stakes bidding process likely to involve major international contractors and local partners.

A request for proposals will be issued later this year, with a contractor expected to be hired in 2027, the Interstate Bridge Program office stated.

For the construction industry, the project will be the largest in the Portland region in decades and dwarfs even other major infrastructure builds such as the $2.15 billion Portland International Airport expansion.

Contractors groups, including the Associated General Contractors Oregon-Columbia chapter, hailed the federal decision, which came from the Federal Highway Administration and the Federal Transit Administration.

“AGC is very pleased with the decision to proceed with the Interstate Bridge replacement project,” said Josh Tompkins, CEO of the AGC Oregon-Columbia chapter, via text message.

“The project is critical for the future economic health of our region’s economy, will put thousands of Oregonians and Washingtonians to work and will inject very-welcome funds into our area,” Tompkins added.

The project comes amid a tepid time for the construction industry. Construction spending nationally fell 2.7 percent year to date through May, compared to the same period in 2025, according to Census Bureau data released Wednesday.

Highway construction held steady, with spending rising 0.6 percent in May to an annual rate of $150.6 billion.

The project involves not just the replacement for the aging twin-span Interstate Bridge, which was first built in 1917, with the second span added in 1958. It also calls for highway widening and expanding interchanges throughout a 5-mile corridor spanning Oregon and Washington. Construction will cause disruptions near Delta Park and Vanport and Hayden Island on the Oregon side, and the Vancouver waterfront and downtown on the Washington side. The work will require a massive influx of construction labor.

“With this approval, our focus is squarely on execution — advancing procurement and ensuring the systems and structures that mega-projects of this scale demand are in place as we transition to construction,” said Washington Transportation Secretary Julie Meredith.

Critics have questioned how the Oregon and Washington transportation departments will fully fund the project.

“What’s missing is still a plan to pay for the whole thing,” said Joe Cortright, an economist and founder of City Lab, a Portland-based think tank. “The project is moving ahead, they’re going to spend $5 billion, then they’re going to come back and say, ‘hey, you owe me another $10 billion to finish the job.’”

Cortright noted that the project is overwhelmingly planned by consultants for the Oregon Department of Transportation and Washington State Department of Transportation.

“They’re substantially independent from the two state DOTs, and they’ve designed a project that will go on for the next 20 years,” Cortright said. “As a semi-retired consultant, I have a sneaking admiration for the people who have lined up work for the next 20 years.”

Nevertheless, state leaders in Oregon and Washington lauded the federal announcement. After the failure of the Columbia River Crossing more than a decade ago, it’s looking increasingly likely that today’s state leaders may get this project built.

“Replacing the Interstate Bridge will have lasting benefits for our communities and region for decades,” Oregon Gov. Tina Kotek said in a prepared statement. “From improving safety and resilience for the region to creating tens of thousands of jobs and supporting local businesses, this project is key to our region’s growth. This milestone is proof of what Oregon and Washington can accomplish when we work together toward a shared goal.”

Washington Gov. Bob Ferguson also said the project is “essential to Washington and Oregon.”

Interim IBR Program Administrator Carley Francis said the federal amended record of decision reflects years of study. “We now get to go do the work of actually building this bridge,” she said.

The post Interstate Bridge project wins federal approval for $14.4 billion build appeared first on Daily Journal of Commerce.

The Oregon Transportation Commission on Tuesday voted to approve an approximately $3.6 billion increase in funding for the Interstate Bridge Replacement (IBR) Program.

The amendment to the 2024-2027 Statewide Transportation Improvement Program increases funding from approximately $2.05 billion to approximately $5.7 billion for a first set of Interstate Bridge projects. In total, they are expected to cost $7.65 billion, interim IBR Program administrator Carley Francis said. Those projects encompass program management, which includes right of way and utility relocation costs, preliminary engineering and construction for the new bridge, connections to Interstate 5 and State Route 14 and Hayden Island, removal of the existing Interstate Bridge spans, and pre-construction tolling. It will also include light rail infrastructure design north and south of the new bridge.

“We had not previously included bridge removal in the STIP amendment because of the time frame; it would occur outside of the STIP horizon,” Francis said. “However, in focusing on maintenance of traffic for river users, and considering opportunities both for combining contracts and also just managing that risk of river movement and having one entity be both constructing and removing the bridges and be responsible for that, it provided some opportunities.”

The cost to remove the current bridge is expected to be $390 million.

The STIP funding comes from general obligation bonding via Oregon House Bill 5005 (2023), a Bridge Investment Program (BIP) grant from the Federal Highway Administration, toll revenue, a Move Ahead Washington grant, and a Mega grant from the U.S. Department of Transportation.

Specifically, the STIP amendment includes an increase from approximately $554.6 million to $795.36 million for costs associated with preliminary engineering, right-of-way acquisition, and utility relocation; an increase from approximately $1.47 billion to $4.78 billion for preliminary engineering and construction work that will allow the completion of the new bridge adjacent to the existing one; an increase from $24.59 million to $51.9 million for pre-launch activities related to tolling; and an allocation of $50.7 million to advance design for light rail elements north and south of the bridge.

Meanwhile, Francis said, the Southwest Washington Regional Transportation Council is set to vote June 2 whether to amend the state’s 2026-2029 Transportation Improvement Program (TIP) and the Metro Council is slated to vote June 25 whether to amend the 2024-2027 Metropolitan Transportation Improvement Plan. Both proposals would increase funding for the project.

If those proposals were to gain approval, federal agencies would issue an amended Record of Decision (ROD) and secure the obligation of the remaining $1.5 billion of BIP funding and $600 million of Mega funding.

“There is $546 million of BIP funds that would expire if we do not obligate them by the end of September,” Francis said.

The IBR Program team expects to receive an ROD this summer. That would allow the project to enter the construction phase, including the construction contractor procurement process. Design and cost negotiations would occur in 2027, and bridge construction activities would begin in 2028.

According to the IBR Program website, the entire project cost is estimated at $13.5 billion to $15.2 billion with a likely cost of $14.4 billion. It will remain an estimate until a guaranteed maximum price is determined, Francis said.

There will be a robust governance process from both states overseeing the project going forward, said Travis Brouwer, deputy director of revenue, finance and compliance for the Oregon Department of Transportation. It will likely include regularly updating the state transportation commissions and legislatures on construction costs.

Brouwer added that Tuesday’s vote commits funds that are available now and already committed. Any decision for additional funding would be brought before the Oregon Transportation Commission, he said.

The two states’ transportation commissions will meet June 5 to discuss toll rates and options for the project.

The post Oregon boosts STIP funding for Interstate Bridge to $5.7 billion appeared first on Daily Journal of Commerce.

Federal agencies have published the final supplemental environmental impact statement for the Interstate Bridge replacement project, a milestone that moves the potential $14.4 billion infrastructure package closer to construction.

The federal document lays out a modified locally preferred alternative centering on a single-level fixed-span bridge, an additional lane in each direction on Interstate 5, ramps to connect I-5 to downtown Vancouver, Washington and an extension of the MAX light-rail system into Vancouver.

The 944-page study from the Federal Transit Administration and the Federal Highway Administration examines various scenarios for building the bridge. The modified locally preferred alternative calls for two spans of three lanes each.

Two park-and-ride lots would be built to accommodate 1,270 vehicles. One would be near the planned Waterfront Station and another near the future Evergreen Station.

Industry groups hailed the step forward for the project, which Oregon and Washington leaders have been trying to move into construction for more than 20 years, dating to the Columbia River Crossing effort.

The final SEIS is a “key next step,” said Mike Salsgiver, executive director of the Associated General Contractors‘ Oregon-Columbia chapter.

The bridge replacement “is critical for the region’s safety, for the reliability of the transportation system and for the economic viability of the region,” Salsgiver said.

Funding is a looming challenge for the project as the price tag has ballooned. Oregon and Washington officials have narrowed their focus to replacing the two bridge spans, connecting I-5 and extending light rail into Vancouver. Those aspects would total $7.65 billion, officials from the two states revealed in March.

“Funding is always a challenge, so having a project of this magnitude depending on federal and state funding packages could definitely create some problems if it’s not handled well,” Salsgiver said.

Salsgiver is traveling this week to Washington, D.C., to discuss Interstate Bridge project funding and other matters with members of Oregon and Washington’s congressional delegations and Trump administration officials.

Project backers are trying to avoid a repeat of the federal government awarding funding and then pulling back, as occurred last year when President Donald Trump’s budget bill rescinded more than $400 million from the I-5 Rose Quarter Improvement Project.

As part of the Interstate Bridge project’s narrower focus, the light rail extension has been pared back, from downtown Vancouver to an elevated station near the Columbia River’s edge.

Transit discussions remain ongoing between the two states and federal agencies, Salsgiver said.

“That policy ping-pong has been going back and forth for years,” he said. “They just need to address and resolve things in that arena. It’s definitely doable but will require some focus and dedication.”

Joe Cortright, a Portland economist and prominent critic of the Interstate Bridge replacement project, said the one described in the federal study cuts against reality.

“It’s basically an EIS for a project that they pretty much said they can’t build,” Cortright said.

He criticized project officials for moving forward before completing an investment-grade analysis. That report is expected to forecast traffic counts and toll revenues. The Oregon Department of Transportation is relying on 2019 traffic data, from before the pandemic changed commuting habits, Cortright said.

The project office reports 143,400 trips were taken daily in vehicles and all other modes in 2019.

“The traffic analysis is wrong and woefully outdated,” Cortright said. “Traffic has gone down since then.”

The tolling analysis is critical to the project’s financing, Cortright said.

“Basically, anything that isn’t paid for with tolls, the two states will have to pick up,” he said. “So, it has real financial implications.”

An investment-grade analysis would almost certainly show far less traffic on I-5 in a tolling scenario, Cortright said.

The report considers a long list of possible impacts. Among them: Construction would require the demolition of the Normandy Apartments, a building with 33 affordable units on Seventh Street in downtown Vancouver.

Fort Vancouver National Historic Site would also see some impacts from highway and bridge construction. Noise and views would be affected, and the project team would need to acquire 0.4 acres from the historic site along State Route 14 west of the Vancouver Land Bridge.

The post Federal report advances Interstate Bridge megaproject appeared first on Daily Journal of Commerce.

The Interstate 5 Rose Quarter Improvement Project is moving ahead to its next phase with $167 million in state funding, even as some critics question the Oregon Department of Transportation‘s piecemeal approach.

The Oregon Legislature adjourned March 6 with the project’s state funding intact despite shortfalls elsewhere in ODOT‘s budget. The total project is expected to cost approximately $2.1 billion. Currently, available funding totals $479.9 million, according to ODOT Deputy Director Travis Brouwer.

“It is both interesting and heartening to see the Legislature has left this Phase 1B funding intact,” Oregon Transportation Commissioner Phil Chang said Thursday, as the commission met to hear updates on several large-scale projects around the state.

“We’re in a very difficult position,” he added. “There are all kinds of services being delayed. There are all kinds of projects that are not being gotten to so that we can move forward with certain priorities. And it’s been great to be able to do that for the Rose Quarter project.”

Chang also pointed to uncertainty regarding the project’s completion.

“I hope we’re in a position after the 2027 legislative session to continue to do that, but I don’t think we can guarantee that to anyone,” he said.

Phase 1B of the project involves extending a southbound auxiliary lane between the Interstate 84 and Morrison Bridge/Oregon Museum of Science and Industry exits, widening the bridge at the Rose Quarter Transit Center and restoring related infrastructure, and building I-5 seismic upgrades and bridge deck resurfacing.

A $30 million federal Reconnecting Communities grant may be used to acquire rights of way in the corridor, project officials said.

“It is an encouraging signal that the tide is slowly but surely starting to shift at the federal level,” said JT Flowers, senior advisor at Albina Vision Trust.

A project working group has begun meeting monthly. The group includes city of Portland and Metro officials, and representatives from the Portland Trail Blazers, Albina Vision Trust and other groups. The working group has greatly improved collaboration on the project, participants said.

“On our end, we feel more confident than ever about the future of this project and our ability as shared stakeholders to deliver a full project, even if it takes us a bit of time,” Flowers said.

ODOT critics said the agency is fitting Rose Quarter construction phasing into the existing project budget with future funding uncertain.

“The money is still in the Rose Quarter budget, and you are determined to spend it,” said Christopher Smith, co-founder of activist group No More Freeways. “So, you are trying to invent a scope that makes sense for that money, with the plan that you’ll come back and ask the Legislature for more later.”

Smith charged that ODOT is building a “lane to nowhere” with no independent function. ODOT officials disputed that assertion during their presentation, saying independent utility of each phase is part of Federal Highway Administration criteria.

Joe Cortright, an economist and director of Portland-based think tank City Observatory, said ODOT needs a long-term funding plan.

“We’re proceeding on a piecemeal basis to fund individual steps without any clear idea of how we will pay for the whole project,” he said.

But some contractors said the project is providing benefits now.

Dominic Waters, owner of Crossover Construction, a Portland concrete contractor working with general contractor Raimore Construction, said that if the project doesn’t move forward, “less and less minority contractors will actually receive opportunities to do this work.”

The post ODOT advances I-5 Rose Quarter project with $167M appeared first on Daily Journal of Commerce.