AUSTIN | Transportation Updates

[LoneStarMike]

Federal funds cut for Austin's I-35 cap-and-stitch program - Over $100 million in federal funding for the project was cut as part of the "One Big Beautiful Bill."

But city leaders knew that grant funding was on the chopping block and had different ideas on how to pay for it.

In May, the city council approved a proposal that committed $104 million for four sections of caps and stitches.

"We also passed a resolution that asked staff to go look at some of these alternative funding options," Councilmember Ryan Alter said.

Alter said the intention is not to pay for this project through property taxes or local taxpayers. Instead, council members are considering visitor and car rental taxes, or a state loan.

Alter said he does not envision the city paying for the entire project, and expects the city could also bring in money from private philanthropy.

"As TxDOT told us, we don't need to come up with additional funding until 2029," Alter said.

But Councilmember Marc Duchen would prefer to pause or abandon the project altogether, considering the city's budget shortfall.

"There are much higher priorities for us to go fund than freeway caps that don't really generate a lot of value for the city," Duchen said.