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Typical weekend traffic on I-35 in Austin.

Austin finalizes plans for $69M highway connectivity deck

January 22, 2026

In the latest development of Austin’s billion-dollar plan to enhance Interstate 35, the city has proposed a final outline costing $69 million to build two stitch structures along the highway. 

The I-35 Cap-and-Stitch project has been a source of significant investment for the city over the past several years, with costs ballooning to a projected $1.4 billion for the entire project. Caps and stitches are concrete structures built over highways to connect previously divided areas of the city. These provide key mobility and roadway elements while offering pedestrians safe means to cross the highway. 

The approved $69 million covers part of a $104 million framework approved in May 2025 to build the foundations for three multi-acre caps and two 300-foot northern stitches. The stitches – 41st Street and Red Line – would cover 2.47 acres. After receiving public input and evaluating four options, officials opted for Option B: Red Line Stitch and 41st Street Split as the preferred alternative for the project. 

The project’s cost covers both roadway elements and the future decks. A selection of features in the design include: 

  • A highway deck spanning the roadway with capacity for amenities, including small buildings and shade trees. 
  • A deck on the south side of the railroad crossing, providing access to a future Red Line station. 
  • A series of shared-use pathways. 
  • A deck connection between both pieces along the eastern frontage road. 

Austin’s Cap-and-Stitch project is notably a separate endeavor than the Texas Department of Transportation’s (TxDOT) multi-billion initiative to expand I-35. The city will be responsible for funding its plans to reconnect communities and expand safe mobility options for pedestrians and bicyclists. While these projects are separate, TxDOT’s move to change some of its timelines for the I-35 expansion has caused Austin to accelerate its own funding and design deadlines. 


Photo by Larry D. Moore, CC BY 4.0 <https://creativecommons.org/licenses/by/4.0>, from Wikimedia Commons

This story is a part of the weekly Texas Government Insider digital news publication. See more of the latest Texas government news here. For more national government news, check Government Market News daily for new stories, insights and profiles from public sector professionals.

Adam Rollins

Adam Rollins brings his expertise as a Researcher and Writer to the Managing Editor role for several of SPI's key publications, including Government Contracting Pipeline, Texas Government Insider, and the latest addition, Government Market News. With a rich background as a freelance Content Specialist, Adam has honed a passion for learning and information gathering, delving into various industries. His research and writing have spanned a range of topics, from artificial intelligence (AI) technology, conservation, and project outsourcing, to managed IT services and software development.

Holding a bachelor's degree in English from Texas State University, Adam's proficiency in message development is complemented by his robust research skills and seasoned writing experience. These attributes make him an invaluable asset to SPI, ensuring the delivery of insightful and impactful content to the company's clientele.

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