The Oregon Transportation Commission voted Thursday to move construction of the I-5 Rose Quarter Improvement Project to its next phase despite limited funding. The Oregon Department of Transportation will use $167.7 million to pay for work set to begin in 2027.

Last year, ODOT received a $450 million grant from the Federal Highway Administration via its Reconnecting Communities and Neighborhoods (RCN) program. This money was intended to pay for the Broadway Weidler Phase 1 package, including construction of the southern portion of the highway cover, completion of the southbound I-5 auxiliary lane and shoulder from I-405 to the Moda Center, and other improvements.

ODOT was able to obligate $67.5 million of the RCN funding before the remainder ($382.5 million) was rescinded by the 2025 Budget Reconciliation Act. The obligated funding can be used for preliminary engineering as well as work related to right of way and utilities.

There is $479.9 million in total funding available for the I-5 Rose Quarter Improvement Project, a staff report states. Travis Brouwer, ODOT deputy director of revenue, finance and compliance, said that funding is not sufficient to finish the project.

The available funding includes $380 million in House Bill 2017 Urban Mobility Strategy funding. Of that portion, currently $167.7 million can go toward phase 1 construction, Brouwer said.

The funding also includes $32.4 million in federal, state and local money for preliminary engineering and phase 1A construction.

“Phase 1A packages work in the corridor both in the north end near the I-5 interchange and at the south end at the I-84 interchange,” said Monica Blanchard, interim program director of the I-5 Rose Quarter Improvement Project.

Phase 1A is under way and scheduled to finish in late 2026. Its focus is on bridge maintenance, stormwater-related work, and early safety improvements. Subcontractors have been selected, the right of entry permit has been finalized, erosion control has been installed on site, and stormwater work on the drainage pond has started, Blanchard said.

ODOT completed a value engineering study and cost reduction workshop after May’s Oregon Transportation Commission meeting. A cost reduction concept of micropiles for the highway cover foundation has been adopted. According to ODOT, micropiles offer flexibility in construction and are better suited to address subsurface obstructions if encountered. Micropiles use smaller drilling equipment than other traditional foundation types and can be better mobilized in restrictive areas. The results are a $45 million cost reduction and no impact on the construction schedule.

ODOT will continue to consider other ways project costs can be lowered, Blanchard said. In fact, eight other concepts are being evaluated. However, officials have ruled out removing the second auxiliary lane on I-84 to Weidler Street, reducing the width of the highway within the highway cover, and using buried concrete arches in lieu of girders.

Moving forward, ODOT presented three construction options to the commission. Option 1 would be construction of phase 1B with the available $167.7 million. Crews would complete some of the operational and safety improvements on I-5 between I-84 and the Broadway/Weidler off-ramp, including widening over the Rose Quarter Transit Center and removing the pinch point at the I-84 northbound on-ramp. Construction would begin in 2027, after completion of phase 1A, and allow for a continuous transition from phase 1A to phase 1B.

Option 2 would delay construction of the full Broadway Weidler Phase 1 package until the third quarter of 2028 if additional funding is secured. ODOT would use remaining preliminary engineering funds, including the RCN grant, to complete design for all of phase 1.

Under option 3, construction funding for the Broadway Weidler Phase 1 package would be reallocated or reprioritized legislatively. Design of Broadway Weidler Phase 1 would be completed with federal RCN grant funding. The team would focus on completing the phase 1A construction package. The rest of the budget would be allocated to other ODOT priorities. ODOT staff did not recommend this option because the project cost would grow each year.

However, a fourth option was proposed by Metro, the city of Portland and Albina Vision Trust. In a letter, the partners proposed something similar to option 1 but with ODOT working with them on phasing and scope of phase 1B and phase 1C.

Commissioners voted unanimously to advance option 4, which directs ODOT to work collaboratively with local and regional partners to analyze the proposed construction scope and develop a feasible plan. ODOT will return before the commission in March or April with a progress report.

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Initial construction of the I-5 Rose Quarter Improvement Project is scheduled to begin next month despite the recent loss of $412.5 million in federal funding.

The Oregon Transportation Commission on Thursday authorized the estimated $75 million phase 1A to proceed. Construction is scheduled to begin on Aug. 25 and continue through fall 2026. That work will primarily be deferred maintenance and stormwater management. It will involve performing bridge rail retrofits, constructing stormwater treatment facilities for highway runoff to the Willamette River, handling roadway asphalt paving and lighting, installing signage and pavement markings, and building the southern portion of the southbound auxiliary lane between Interstate 84 and the Morrison Bridge.

Phase 1 is currently expected to cost around $549.75 million. Last year, the Oregon Department of Transportation (ODOT) received a $450 million Reconnecting Communities and Neighborhoods grant from the Federal Highway Administration. To date, $37.5 million has been obligated for preliminary engineering of phase 1 and relocating utilities. But the remaining $412.5 million was rescinded as part of the One Big Beautiful Bill Act signed into law by President Trump earlier this month.

Approximately $146.8 million has been spent on the project to this point. Currently, there is around $303.1 million available, and that is expected to pay for professional engineering services tied to phase 1 ($51.3 million), property acquisition to gain right-of-way for phase 1 ($30.3 million), utility relocation for phase 1 ($9 million), all work in phase 1A ($75 million), and other phase 1 construction ($137.5 million).

The commission on Thursday authorized ODOT to continue design of phase 1. The work will involve building the southern portion of the highway cover (30 percent of the cover length) and multimodal improvements, completing the southbound auxiliary lane and shoulder from Interstate 405 to the Morrison Bridge exit, extending the northbound auxiliary lane and shoulder under the highway cover, installing signage for highway cover safety and construction, and widening Holladay/Hassalo Bridge, according to the project’s website. Construction is expected to start in early 2027 and finish in 2030.

Travis Brouwer, ODOT assistant director of revenue, finance and compliance, said the agency has enough money to complete phase 1A but not phase 1. There is $137.5 million available for phase 1, but construction of the highway cover is expected to cost from $400 million to $500 million. The $137.5 million will pay for construction of the northbound I-5 auxiliary lane between I-84 and the Weidler Road ramp.

The commission considered the option of pausing construction of phase 1A and seeing if funding will be made available for phase 1 by the Oregon Legislature but ultimately decided to move forward after weighing risks such as cost increases due to delays and possible lost revenue.

As part of Thursday’s action, ODOT will continue assessing cost reduction concepts to bring the total project budget within the $1.5 billion to $1.9 billion range.

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