Oregon transportation commissioners on Friday approved a $5.87 billion budget request for the Oregon Department of Transportation for 2027-29.

The agency is in the process of finalizing its budget request, which will go to the state’s chief financial officer. The Legislature ultimately determines the agency’s funding through appropriations bills, which are finally signed by the governor.

ODOT anticipates a $5.87 billion budget for 2027-29. That’s a drop of $29.5 million and 548 positions from the preliminary budget that the Oregon Transportation Commission approved in June.

“As we get deeper and deeper into this, we’re becoming more and more concerned,” OTC Chairwoman Julie Brown said.

ODOT is bracing for its fourth consecutive biennium of cuts. The agency has lost approximately $200 million in its annual budget since 2019-21.

Most of that reduction has come in workforce, ODOT Deputy Director Travis Brouwer said. “This is really a reduction in spending on people, primarily.”

The cuts have fallen largely in project delivery and administration.

“With any scenario presented to us, there are painful cuts to capacity and painful cuts to provide service to our communities and to the state of Oregon,” Commissioner Phil Chang said.

Commissioner Jeff Baker asked for budget assumptions if maintenance was not cut at all. Cuts to maintenance affect safety, he said, while cuts to Driver & Motor Vehicle Services come as an inconvenience.

Brouwer replied that impacts on other agency operations would be “catastrophic” if maintenance funding was maintained. Revenue could also be affected if DMV operations are scaled back, he said.

The agency’s budget request tees up what’s sure to be a contentious budget fight next year.

“We’re thinking about every line item,” Brown said. “We’re thinking about everything we can try to do to help. We’re also trying to flag areas that we feel strongly (about).”

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The Metro Council has reallocated some Metropolitan Transportation Improvement Plan (MTIP) funds to keep I-5 Rose Quarter Improvement Project construction advancing in Portland. The action ultimately stems from the rescindment last year of hundreds of millions of dollars of federal grant funding.

The council on Thursday approved an amendment to the 2024-2027 MTIP for three Rose Quarter projects. The first includes development and right-of-way efforts, relocation of utilities, and acquisition of permanent signs and software. The second includes construction of stormwater facilities, a structural deck overlay, bridge rail upgrades, and seismic retrofits for two bridges. The third includes Holladay/Hassalo bridge work, construction of another structural deck overlay, replacement of bridge and median rail, a seismic retrofit, signage upgrades, retaining wall and embankment work, and reconstruction of local street and light rail facilities.

The I-5 Rose Quarter Improvement Project involves construction of a cover over Interstate 5, a new crossing on Hancock Street atop the cover, multimodal local street improvements, an auxiliary lane and wider shoulders, a pedestrian and bicycle bridge on I-5, and relocation of an I-5 southbound off-ramp further south. The total project is being designed and constructed in phases.

“This amendment is important but is primarily administrative to align our project programming with the funding realities of the rescinded Reconnecting Communities (and Neighborhoods) grant and (the project’s) phasing,” said Monica Blanchard, interim program director of the Oregon Department of Transportation.

The MTIP amendment is in alignment with the Oregon Transportation Commission‘s aim to maintain continuous construction, Blanchard said. The OTC approved a similar amendment to the Statewide Transportation Improvement Program in May.

The total net decrease in the MTIP is approximately $382.2 million, mostly because of the rescindment of Reconnecting Communities and Neighborhoods (RCN) grant funding, said Gabriela Lopez, senior transportation planner for Metro.

The formal amendment decreases the total programmed funding from approximately $872 million to approximately $489.8 million, a staff report states. Approximately $67.5 million in RCN funds previously obligated are available for preliminary engineering, right-of-way acquisition and utility relocation activities.

The MTIP amendment redistributes funds from other project phases, including $3 million from Phase 1 construction to preliminary engineering, and $18 million from Phase 1 to Phase 1A (currently 40 percent complete). Also, the construction phase of the Broadway to Weidler Phase 1 project has decreased by approximately $402.9 million, including reallocation of $21 million to preliminary engineering and Phase 1A construction.

The total project has increased in Phase 1 from $247.6 million to $250.3 million, increased in Phase 1A from $75 million to $93 million, and decreased in Phase 1B from $549.4 million to $146.5 million.

Looking ahead, ODOT plans to continue to seek funding for construction of Phase 1C. That work would include extending the northbound merging lane, completing the southbound merging lane, building the southern portion of the highway cover, and performing the full Broadway/Weidler build-out.

Additional work beyond Phase 1C is unfunded and would include building the remaining two-thirds of the highway cover, multimodal improvements, the I-5 flyover, the pedestrian/bicycle bridge, northbound merge lane and I-5 bridge work.

According to the project’s website, the current cost estimate for the I-5 Rose Quarter Improvement Project is between $1.96 billion and $2.08 billion.

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Kiewit Infrastructure West faces increased scrutiny of its performance on the Interstate 205-Abernethy Bridge project after two safety incidents that state officials deemed “serious,” along with escalating costs and delays.

Kiewit received a negative performance evaluation in May, said Vidal Francis, an Oregon Department of Transportation program manager.

On a scale of 50 to -50, with a baseline of zero, Kiewit scored a -36, Francis told Oregon Transportation Commission members at a meeting last week.

“The contractor’s monitored performance in this review period has not been great,” Francis said.

Two safety incidents drew particular concern from ODOT. In one, a work truck backed over a worker, resulting in hospitalization. In another, a boat driver needed rescue after striking a piling and going into the Willamette River.

The incidents were “pretty egregious” and could have been prevented, Francis said.

“We are aware of the concerns raised regarding work on the I-205 Abernethy Bridge project, including the discussion during the Oregon Transportation Commission meeting,” Kiewit spokeswoman Teresa Shada wrote in an email to the 91��Ƶ. “Safety is fundamental to how we operate, and we take any incident involving members of the public, our employees, subcontractors or project partners seriously. Kiewit will continue to work with ODOT to address and resolve changes to the work and deliver the project in accordance with our contract.”

Kiewit will have to submit a corrective plan and hold mandatory meetings with ODOT staff, Francis said.

“They need to come back to us with some of the corrective plans or even safety plans, if you will, as to how they cannot allow this to happen again,” he said.

It was unclear if the safety incidents involved Kiewit directly, or a subcontractor. But the prime contractor is ultimately responsible, Francis said.

“They have ultimate control over the entire project itself,” he said.

The project is more than a year behind schedule, with estimated completion dates ranging from September 2027 to January 2028. Kiewit’s contract ends on Oct. 21, 2026, and ODOT estimates an additional 316 to 440 contract days.

The project is approximately 78 percent complete, Francis said.

The cost of the project’s first phase is estimated at more than $700 million, according to ODOT. Total costs have risen to more than $800 million — more than triple the original estimate of $248 million. The bridge replacement effort is ODOT’s largest project in decades.

Kiewit’s performance may have long-term effects, according to Francis.

“This also could impact their ability to bid on future projects with the agency,” he said.

In other updates from the June 11 OTC meeting:

Interstate Bridge costs

Annual expenditures for the Interstate Bridge replacement project are expected to reach $216.6 million in 2027, and peak at $806 million in 2031, according to a preliminary finance plan presented to commissioners. In the 2028-29 biennium, costs are projected to hit $950 million. ODOT’s share would be half, or about $475 million.

The first phase of the project to replace the bridge and upgrade Interstate 5 in Portland and Southwest Washington is projected to cost $5.68 billion.

The project budget has limited design work, said Travis Brouwer, ODOT’s deputy director.

“We are only designing light rail to the waterfront,” he said. “The city of Vancouver, for example, has been asking us to continue the design into downtown. There is simply no money for that.”

ODOT’s budget

Transportation officials expect to present plans next year to cut $200 million from ODOT’s budget. The commission got its first look at a preliminary budget that would need to be approved by the Oregon Legislature and signed into law by the governor.

The preliminary budget gives commissioners the chance to tell the public how cuts will result in reduced services such as miles of chip seal, Commissioner Phil Chang said.

“What we can do is highlight what this proposal costs us,” he said.

Tolls

Commissioners discussed potential tolling levels on the Interstate Bridge. Chairwoman Julie Brown said she favors keeping tolls low while limiting exemptions and subsidies. Administrative costs often make exemptions and subsidies not worthwhile, she said.

“I’ve also been a firm believer, if you use it, you should pay,” she said.

Tolls were historically used to pay for projects, including the second span of the Interstate Bridge in the 1960s. But now generations of Oregon drivers have become accustomed to paying few tolls, if any.

“As Americans, as Oregonians, we’re going to have to start understanding that there’s a cost to all of this stuff,” Brown said. “These things were built for us, and we’ve enjoyed them over the years and haven’t had to pay for them, because the costs of them were years ago. Now, we’re going to have to make hard choices.”

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As the approximately $14.4 billion Interstate Bridge replacement project advances, officials are continuing to discuss tolling details.

A joint meeting of the Oregon Transportation Commission and the Washington State Transportation Commission on Friday provided results of the Level 3 Traffic and Revenue Analysis with the latest information on four tolling scenarios. The financial plan for the Interstate Bridge Replacement (IBR) Program includes $1.5 billion in toll funding.

Julie Meredith, secretary of transportation for the Washington State Department of Transportation, said tolling the existing bridge would allow construction to start in Washington, because tolling revenue would provide up-front bonding capacity for the project.

The first phase of the first set of projects includes constructing the replacement bridge, adding bridge connections to Interstate 5, extending light rail infrastructure to Vancouver, and removing the existing bridge.

Currently, toll revenue is not expected to help pay for future project phases, according to interim IBR Program administrator Carley Francis.

Financing strategies currently being explored by the IBR team for the first set of projects include state toll-backed bonds or a toll-backed federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan. The project team plans to begin the application process for the TIFIA loan next year.

Washington State Transportation Commissioner Gael Tarleton requested a more detailed discussion comparing the benefits of a TIFTA loan with those of state toll-backed bonds.

The traffic and revenue analysis includes four toll scenarios, with toll rates ranging from $1.55 to $4.70 per trip and possible rate variability depending on time of day. Also, two scenarios would begin tolling at the start of project construction and the other two would begin when the new bridge opens.

“We do assume there is a low-income discount program in all scenarios,” said Stantec transportation engineer Liz Horta, who led the Level 3 Traffic and Revenue Analysis. “The timing of when that begins varies by scenario, with some scenarios offering this discount on day one and some scenarios offering it when the new bridge is online.”

Oregon Transportation Commissioner Phil Chang said he would support a low-income discount.

“It seems to me that if we’re trying to provide relief to low-income people, it should start sooner than later,” he said.

The discount would be 50 percent for eligible drivers, Horta said. The criteria would be household income within 200 percent of the federal poverty line. Eligible drivers would need to be registered and have a Good To Go! account, which is used for toll payments in Washington.

Possible toll exemptions under consideration include state maintenance vehicles, school buses, tow trucks, and emergency vehicles. There would be no exemptions for transit buses, rideshare vehicles such as vanpools, or private buses.

The four tolling scenarios being considered also include the existing Washington tribal preemptions of Yakama and Nez Perce tribes. The process for consultation with multiple tribes and any considerations of toll discounts will be made by the two state transportation commissions.

Washington State Transportation Commission Chair Debbie Young said Washington is also advancing a low-income toll discount for its entire tolling system.

“One of the things just in the tolling piece that kind of stuck out to me is that Washington has a lot at stake here as far as making decisions on what exemptions are given,” Oregon Transportation Commission Chair Julie Brown said. “That is because it impacts their entire state and their tolling system, whereas Oregon doesn’t have that system in place.”

Each state transportation commission will discuss separately in the next two weeks whether there is anything they would like to request the Bi-State Tolling Subcommittee to study further.

The two commissions will meet again later this year or early next year to receive a new report from the Bi-State Tolling Subcommittee and consider decisions that will support advancing a toll rate and policy proposal. Final toll rates and policies are expected to be adopted as early as late fall 2027.

Currently, tolling on the existing Interstate Bridge is anticipated to begin as early as summer 2028.

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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.

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Oregon transportation commissioners on Thursday blasted leaders of the Interstate Bridge replacement program for keeping them in the dark for months as projected construction costs soared by billions of dollars.

Poor communication — and the massive cost increase itself — could jeopardize the push to build a new, seismically resilient bridge carrying Interstate 5 over the Columbia River, commissioners said.

“The narrative now is so negative that you guys could put the bridge in jeopardy simply because you’re not willing to have these conversations until the numbers are perfect,” Commissioner Jeff Baker said.

Thursday’s Oregon Transportation Commission meeting came only days after news broke that cost estimates for the project had more than doubled, to a range of $12.2 billion to $17.7 billion. The previous estimates, from 2022, were $5 billion to $7.5 billion.

The cost estimates were stated in an Aug. 15 document unearthed by City Observatory, a Portland think tank, through a public records request.

Oregon Department of Transportation and Interstate Bridge replacement (IBR) program officials have said the estimates were not shared publicly because they were not finalized, an explanation that seemed to exasperate commissioners who were working with years-old cost assumptions.

“You put all of us in a bad situation by having information that you may not have given to elected officials or to committee members or to others, and tried to contain it and tried to figure out what to do,” Chairwoman Julie Brown said.

Baker expressed frustration that he learned of the new cost estimates from media outlets and not IBR program officials.

“As commissioners, we’re not getting our information from you,” he said.

An official cost estimate will be available in March, IBR program officials said.

“It’s incumbent upon us to get information out, which obviously has been a breach of trust with folks,” said Carley Francis, the IBR program’s newly appointed interim director.

The commission had received assurances in October 2025 that a fresh cost estimate would be available in December 2025, Baker said.

“This is a moving target, and it’s been moving and moving and moving,” he said.

IBR program officials blamed some of the delay on an earlier-than-expected decision by the U.S. Coast Guard to approve a 116-foot navigational clearance, making a fixed span possible. With the approval in hand, more accurate estimates can be produced, officials said.

Yet IBR program officials did not dispute the 11-figure cost estimates that drew headlines, and Francis conceded the estimates and underlying document were “robust.”

The ballooning price tag could make the project infeasible, Commission Vice Chairman Lee Beyer said.

“If those numbers are correct, we can’t build this project,” he said. “There’s no way you’re going to get the money to do it at this point.”

The Interstate Bridge replacement project is broken into 29 different packages, including the bridge itself and seven interchanges on a 5-mile corridor spanning Oregon and Washington.

IBR program officials have discussed sequencing those packages, in part of logistical necessity and in part to spread costs. But Baker cautioned that sequencing should not be used to hide the true cost of the project, or its impact on other transportation infrastructure priorities in Oregon.

“I understand it’s a process that has worked in Washington, and we’ve been guilty of it here at times, but the direction of the Legislature and the feeling of this commission is that’s not the appropriate way to do it,” Baker said. “We should scope it. We should come up with a budget. We should put everything out there — because at $13.6 billion, what do you think that’s going to do to our ability to handle projects around the state if that bridge is draining that tank?”

With the Coast Guard’s approval, a supplemental environmental impact statement can be finalized and a record of decision made for the project. Oregon and Washington transportation leaders also face a Sept. 30 deadline to allocate $927 million of a $1.5 billion federal grant.

In the meantime, the project is moving forward. Engineers are testing ways to strengthen the soils around the bridge. They’re using a test site adjacent to the I-5 southbound Hayden Island exit.

“There are different techniques that have different results,” said Ray Mabey, assistant program administrator. “Each one of them is fairly expensive, and we want to make sure that we address and pick the right one.”

The IBR team is also looking ahead to bidding for the massive progressive design-build contract for bridge construction.

At least two teams, maybe three, are expected to bid on the contract, Mabey said. Other packages will be broken into parts small enough for local contractors to tackle.

IBR program officials are “making sure that we have packages that are sized appropriately for biddability, but also our local contractors,” Mabey said. “We’re not hearing a desire to have construction packages sized that only draw on the worldwide companies.”

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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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The Metro Council last week added three Interstate Bridge Replacement (IBR) projects to the 2024-2027 Metropolitan Transportation Improvement Program (MTIP) to meet federal project delivery requirements. The Interstate Bridge replacement project is in the design phase; construction is expected to begin next year.

The council voted 6-1 on Thursday to approve the amendment (Mary Nolan voted no). The item will next go before the Oregon Transportation Commission on July 31. The commission’s approval is required for authorization of the funding for the three projects. If the commission were to deny the amendment, the Metro Council’s decision would be considered invalid and would not be sent to the Federal Highway Administration for final approval.

The June 2025 MTIP contains three projects related to the effort to replace the Interstate Bridge and improve related interchanges. One is a modification to the I-5 Columbia River (Interstate) Bridge project and two new projects are related to tolling and the construction of the replacement bridge. The combined amendment is $1.9 billion, said Ted Leybold, Metro transportation policy director.

The I-5 Columbia River (Interstate) Bridge project contains the nonconstruction phases for the IBR program. Funding for the planning and initial preliminary engineering phase was obligated prior to development of the 2024-2027 MTIP. Planning and design are under way; the work includes right-of-way and utility relocation activities for early construction packages, as well as continuing overall program management and development work. The total MTIP programming cost has increased from $103 million to approximately $554.6 million.

One new project for pre-completion of tolling infrastructure calls for installing signage, related structures, and electrical systems in preparation of new tolling operations on and near the Interstate Bridge. The total MTIP programming cost is approximately $24.6 million.

The other new project added to the MTIP is for the replacement of the Interstate Bridge. It will advance post-NEPA (National Environmental Policy Act) design and construction activities for the new bridge over the Columbia River between Oregon and Washington, downstream of the existing structure. The work will support the construction of two new bridges to accommodate highway, transit and active transportation modes. The total MTIP programming amount is approximately $1.5 billion.

Tolling rates will be set by the Oregon Transportation Commission and the Washington State Transportation Commission. Pre-completion tolling on the Interstate Bridge is expected to start in 2027.

Ray Mabey, assistant program manager for the IBR program and the state bridge engineer for the Oregon Department of Transportation, said tolling rates will be variable depending on time of day. IBR program staffers are studying possible tolling rates; all scenarios include a discount for low-income drivers.

According to the , the total estimated project cost is from $5 billion to $7.5 billion.

Full project completion is expected to require 10 to 15 years.

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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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The Oregon Transportation Commission on Wednesday approved the use of $412 million in flexible funding via the federal Infrastructure Investment and Jobs Act.

Oregon is set to receive at least $1.2 billion over the next six years from the 2021 infrastructure package. About $800 million of that amount will be directed to specific purposes, such as electric vehicle infrastructure and bridge repairs and replacements. The remainder was not specifically allocated.

“With today’s decisions, the Oregon Transportation Commission has directed investments that address some of the critical needs of our transportation system while also approving expenditures in areas focused on a more equitable, safe, resilient, and sustainable transportation system,” commission Chairman Robert Van Brocklin stated.

The commission approved the following allocations:

• $95 million to improve access by individuals with disabilities;
• $75 million to repair damaged and unsafe roadways;
• $50 million to improve highways and interchanges;
• $50 million to improve state highways that also function as main streets;
• $40 million for operations and maintenance;
• $40 million to match dollars from competitive U.S. Department of Transportation grants;
• $30 million to improve safety for children to walk and drive to school;
• $15 million to help local governments reduce transportation-related greenhouse gas emissions;
• $10 million to improve mobility for people without cars; and
• $7 million to help small construction firms grow.

The commission’s next step will be to approve specific projects to receive funding from each pot of money.

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