Earlier this month, the Texas Department of Transportation (TxDOT) announced that it would be pursuing an $8 billion expansion for Interstate 35 through Austin, adding lanes and constructing two levels of underground tunnels near the University of Texas. The announcement came on May 6th, during a presentation at a Capital Area Metropolitan Planning Organization (CAMPO) board meeting. CAMPO voted to allocate $400 million in funding for the project and hopes that federal agencies will join in to help fund the project.
In its current form, the expansion project would add two managed lane each way along I-35 for 16 miles from Texas 45 South to U.S. 290 East in North Austin. One managed lane each way for 12 miles from U.S. 290 East to Texas 45 North in Round Rock would also be added. The highway would also transform completely in its stretch through downtown, with current models showing five lanes each way below ground level and frontage roads on ground. Assuming the necessary funding comes in from state and federal agencies, construction is expected to begin in 2022 and be completed sometime after 2027.