$2.4 Billion I-35 Rebuild to Alleviate Traffic Congestion in San Antonio

Construction of elevated lanes on Interstate 35 in San Antonio, Texas.

San Antonio, January 31, 2026

In San Antonio, a $2.4 billion project to reconstruct and expand a 25-mile stretch of Interstate 35 (I-35) is underway, aimed at reducing traffic congestion and improving travel times. The Texas Department of Transportation (TxDOT) plans to add elevated lanes, which will reduce commute times by up to 30 minutes. The project is being executed in phases, with significant progress already made and completion expected by 2029. Local businesses are facing challenges due to construction impacts.

San Antonio, Texas

$2.4 Billion I-35 Rebuild Aims to Alleviate Traffic Congestion

The Texas Department of Transportation (TxDOT) has initiated a $2.4 billion project to reconstruct and expand a 25-mile stretch of Interstate 35 (I-35) in San Antonio, aiming to reduce traffic congestion and improve travel times. The project spans from Farm to Market Road 3009 near Schertz to the intersection of I-35 and Loop 410 South near Von Ormy. The first phase, covering the Far Northeast Side, is nearly 50% complete and is expected to conclude next year. The second phase, extending from the Northeast Side to the Southwest Side, is 29% complete and slated for completion by 2029. Once finished, the project is projected to decrease commute times by up to 30 minutes, accommodating anticipated traffic growth over the next 20 to 25 years.

Project Details and Timeline

The I-35 rebuild involves adding elevated lanes, including two main lanes and one high-occupancy vehicle (HOV) lane in each direction, to enhance traffic flow and safety. Construction began in June 2022, with the first phase nearing completion and the second phase progressing as scheduled. The project is expected to be completed by 2029.

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 business in 2025 as construction intensified. Customers have been deterred by the construction-related disruptions, leading to decreased patronage.

Background Context

The I-35 corridor is a critical transportation route in San Antonio, serving as a primary artery for commuters and freight. The extensive reconstruction and expansion project is part of TxDOT’s efforts to address the city’s growing traffic demands and improve roadway safety. The project is designed to accommodate projected traffic increases over the next two decades, aiming to provide long-term solutions to the region’s transportation challenges.

Key Features of the I-35 Rebuild Project

Feature Description
Project Cost $2.4 billion
Project Length 25 miles
Phases Two phases; first phase nearly 50% complete, second phase 29% complete
Completion Timeline First phase expected to conclude next year; second phase slated for completion by 2029
Traffic Improvement Projected to decrease commute times by up to 30 minutes
Business Impact Local businesses have reported challenges due to construction-related disruptions

Frequently Asked Questions (FAQ)

What is the purpose of the $2.4 billion I-35 rebuild project in San Antonio?

The project aims to reconstruct and expand a 25-mile stretch of I-35 to reduce traffic congestion and improve travel times, accommodating anticipated traffic growth over the next 20 to 25 years.

What are the key features of the I-35 rebuild project?

The project includes adding elevated lanes with two main lanes and one high-occupancy vehicle (HOV) lane in each direction, along with reconfiguring entrance and exit ramps to enhance traffic flow and safety.

How is the I-35 rebuild project affecting local businesses?

Local businesses along the I-35 corridor, such as Eurasian Auto Repair, have reported challenges due to construction-related disruptions, leading to decreased customer patronage and a 30% decline in business in 2025.

What is the expected completion timeline for the I-35 rebuild project?

The first phase of the project is nearly 50% complete and is expected to conclude next year, while the second phase is 29% complete and slated for completion by 2029.

How will the I-35 rebuild project impact traffic in San Antonio?

Once completed, the project is projected to decrease commute times by up to 30 minutes, accommodating anticipated traffic growth over the next 20 to 25 years.

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STAFF HERE SAN ANTONIO WRITER
Author: STAFF HERE SAN ANTONIO WRITER

The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar 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 Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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