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San Antonio’s $2.4 Billion I-35 Rebuild Aims to Alleviate Traffic Congestion

Elevated highway construction in San Antonio, with cranes and construction workers.

San Antonio, January 31, 2026

The Texas Department of Transportation has initiated a massive $2.4 billion project to reconstruct a significant 20-mile stretch of Interstate 35 in San Antonio. The initiative seeks to reduce traffic congestion and improve travel times, with completion expected by 2029. The efforts involve constructing elevated lanes and enhancing connections to nearby routes, ultimately supporting the city’s economic growth and improving residents’ quality of life.

San Antonio’s $2.4 Billion I-35 Rebuild Aims to Alleviate Traffic Congestion

San Antonio, Texas – The Texas Department of Transportation (TxDOT) has initiated a $2.4 billion project to reconstruct a 20-mile stretch of Interstate 35 (I-35) in San Antonio, aiming to reduce traffic congestion and improve travel times. The project is expected to be completed by 2029.

Project Overview

The I-35 rebuild project spans from Farm to Market Road 3009 near Schertz to the intersection of I-35 and Loop 410 South near Von Ormy. The plan includes the construction of elevated lanes, comprising two main lanes and one high-occupancy vehicle (HOV) lane in each direction, designed to accommodate current and future traffic demands. These elevated lanes will provide direct connections to Loop 410 North and Loop 1604 West, enhancing mobility and operational efficiency along the I-35 corridor.

Current Progress

As of January 2026, the project is in its second phase, which covers the stretch from Loop 410 North to the Southwest Side. This phase is approximately 29% complete and is slated for completion by 2029. The first phase, located on the Far Northeast Side, is nearly 50% complete and is expected to wrap up next year. The construction involves building elevated lanes, reconfiguring entrance and exit ramps, and adding and improving bicycle and pedestrian paths to promote multimodal transportation.

Impact on Local Businesses

Local businesses along the I-35 corridor have experienced challenges due to ongoing construction. For instance, Eurasian Auto Repair, a long-standing repair shop specializing in foreign luxury vehicles and fleet trucks, reported a 30% decline in work in 2025 as construction intensified. Customers have expressed concerns about navigating the area amidst the construction, leading to decreased patronage. Despite these challenges, TxDOT anticipates that the completed project will significantly reduce commute times and improve traffic flow, benefiting both commuters and local businesses in the long term.

Background Context

The I-35 corridor is a critical transportation route, serving as a major artery for both local and interstate traffic. The reconstruction project is part of TxDOT’s broader efforts to address increasing traffic volumes and enhance safety and mobility along the corridor. The project is expected to accommodate projected traffic growth over the next 20 to 25 years, with estimates indicating that commute times could be reduced by up to 30 minutes upon completion. The initiative reflects a significant investment in San Antonio’s infrastructure, aiming to support the city’s economic growth and improve the quality of life for its residents.

Key Features of the I-35 Rebuild Project

Feature Description
Project Cost $2.4 billion
Project Length 20 miles
Completion Date 2029
Elevated Lanes Two main lanes and one HOV lane in each direction
Direct Connections Loop 410 North and Loop 1604 West
Current Phase Completion 29% complete as of January 2026
First Phase Completion Nearly 50% complete, expected to wrap up next year
Impact on Local Businesses Challenges due to construction; anticipated long-term benefits

Frequently Asked Questions (FAQ)

What is the I-35 rebuild project in San Antonio?

The I-35 rebuild project is a $2.4 billion initiative by the Texas Department of Transportation (TxDOT) to reconstruct a 20-mile stretch of Interstate 35 in San Antonio, aiming to reduce traffic congestion and improve travel times. The project is expected to be completed by 2029.

What does the project entail?

The project includes the construction of elevated lanes, comprising two main lanes and one high-occupancy vehicle (HOV) lane in each direction, designed to accommodate current and future traffic demands. These elevated lanes will provide direct connections to Loop 410 North and Loop 1604 West, enhancing mobility and operational efficiency along the I-35 corridor.

How is the project progressing?

As of January 2026, the project is in its second phase, covering the stretch from Loop 410 North to the Southwest Side. This phase is approximately 29% complete and is slated for completion by 2029. The first phase, located on the Far Northeast Side, is nearly 50% complete and is expected to wrap up next year.

How has the construction affected local businesses?

Local businesses along the I-35 corridor have experienced challenges due to ongoing construction. For example, Eurasian Auto Repair reported a 30% decline in work in 2025 as construction intensified. Customers have expressed concerns about navigating the area amidst the construction, leading to decreased patronage. Despite these challenges, TxDOT anticipates that the completed project will significantly reduce commute times and improve traffic flow, benefiting both commuters and local businesses in the long term.

Why is this project important for San Antonio?

The I-35 corridor is a critical transportation route, serving as a major artery for both local and interstate traffic. The reconstruction project is part of TxDOT’s broader efforts to address increasing traffic volumes and enhance safety and mobility along the corridor. The project is expected to accommodate projected traffic growth over the next 20 to 25 years, with estimates indicating that commute times could be reduced by up to 30 minutes upon completion. The initiative reflects a significant investment in San Antonio’s infrastructure, aiming to support the city’s economic growth and improve the quality of life for its residents.

Deeper Dive: News & Info About This Topic

HERE Resources

$125 Million Reconstruction Project Announced for I-20 in Abilene
Construction Begins on I-35 Capital Express Central Project
Austin Launches $4.5 Billion I-35 Reconstruction Project
Austin Plans Major Transportation Overhaul for Downtown
Austin Transportation Commission Supports New Core Plan

STAFF HERE AUSTIN WRITER
Author: STAFF HERE AUSTIN WRITER

The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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