Enhancements to one of Texas’ most traveled highways could soon come with a bigger sticker price after previous cost escalations and scale backs.
The Texas Department of Transportation’s Austin District is in the midst of a $4.5 billion expansion of Interstate 35 through the heart of Austin, with construction along the eight-mile project corridor expected to extend into the early 2030s. Adjacent to that, the City of Austin is advancing work on its own investments to the interstate in the form of its Our Future 35 program, funneling millions into infrastructure investments that could one day support decked plazas over the highway that could feature parks, art installations and community spaces.
Last May, Austin City Council approved a $104 million down payment on the Our Future 35 program to incorporate roadway elements for future highway caps into TxDOT’s construction. That investment was significantly reduced from the original proposal, which had ballooned to a $1.4 billion price tag largely due to inflated construction costs.
Now, a new city memo released on Monday, January 12, reveals a change in TxDOT’s construction timeline could impact those figures once again. Austin officials said TxDOT informed city staff the I-35 Capital Express Central project had been divvied into two bid packages — an advance construction package set to run from 2027 to 2031 and an ultimate construction package slated for 2029 to 2033. As a result, final design on the city’s roadway elements won’t wrap until 2028, delaying construction on those enhancements to 2029.
“Because the City is responsible for all cost overruns, the delay in design, associated cost estimates, and construction bids present some risk,” the memo read in part. “However, the current Phase 1 cost estimate provided by TxDOT, based on 30% design completion includes a $17.33 million line-item contingency (20%) as part of the $104 million City commitment to account for potential cost escalation.”
Now, the city is expected to commit to Phase 2 cap deck elements by May of this year, up from the original deadline of November 2026. In March, city staff will join an Austin City Council work session to present a proposed funding plan, touching on the city’s: