Construction of the long-delayed Rose Quarter Freeway Improvement Project in Portland next month will begin, as state officials acknowledge the project is short by a whopping amount of over $1.5 billion in funding.
Thursday, the Oregon Transportation Commission voted unanimously to approve the commencement of preliminary construction, enabling work to proceed even as the total projected cost of the project rose to just shy of $2 billion — though just a small part of that has been committed to date.
Chairperson of the commission, Julie Brown, highlighted the urgency to move quickly, affirming that while the state has so far accumulated about $450 million, delaying could lead to increased spending and jeopardize long-term relationships with community partners.
“I really believe firmly that we must keep going,” Brown testified at Thursday’s session. “But everybody has to realize — after this, there is no money available. It’s going to take all of us to sort out how to pay for the remainder.”
Phase 1 construction start
Dated to begin construction on Aug. 25, the initial $75 million phase will focus on the upgrading of regional roads and bridges and stormwater systems. These initial efforts are part of a strategy to lay the groundwork for a complete reconstruction of Interstate 5 in the core city, which includes plans to cap sections of the freeway and revamp the surrounding transportation system.
But what will pay for the rest of the money isn’t clear yet. Federal funding was derailed last year when the U.S. Department of Transportation canceled the majority of a $450 million grant originally made to the project. The move, tied to provisions in Trump-era federal law, was a blow to backers of the freeway caps — features deemed essential by entities like the Albina Vision Trust, which aims to revive historically Black communities displaced by previous infrastructure proposals.
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Community support
Some community leaders voiced support for advancing the project on Thursday even without finances. They indicated that additional delays would weaken community confidence and jeopardize long-hoped investment in the area.
However, the prospects for funding are dim. Oregon lawmakers finished their final session without appropriating new money for the project, and while Governor Tina Kotek is calling a special session in August to concentrate on transportation funding, she has said that large projects like the Rose Quarter will not receive any of those dollars.
Critics are wary of proceeding without a clearer fiscal path. Some argue the deficit will force draconian budget cuts or layoffs in other areas. Others argue that widening the freeway would increase greenhouse gas emissions and undercut the state’s climate initiatives.
Despite those worries, transportation officials say waiting now might prove more costly in the long run — dollars and politics.
The officials are now in a hurry to maintain momentum as they seek alternative sources of funds. Meanwhile, the project will proceed, hoping that a better path to full funding can be defined before construction phases begin in the future.
The I-5 Rose Quarter Improvement Project is being led by the Hamilton/Sundt Joint Venture, which was awarded the Construction Manager/General Contractor (CM/GC) contract in July 2020, in partnership with Raimore Construction, a Portland-based, Black-owned firm known for its commitment to equity and community engagement. In 2022, ODOT brought on three DBE-certified subcontractors to handle early work packages focused on infrastructure prep, including stormwater systems and sound walls.
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Oregon Greenlights Construction on Rose Quarter Freeway – Factsheet
Project Overview
Location: Portland, Oregon
Scope: Interstate 5 overhaul through central Portland with freeway caps and transportation network improvements
Status: Construction approved to begin August 25, 2025
Total Estimated Cost: Nearly $2 billion
Secured Funding: $450 million (23% of total)
Funding Shortfall: Over $1.5 billion
Initial Phase Budget: $75 million
Construction Timeline
Groundbreaking: August 25, 2025
Phase 1 Focus: Local roads, bridges, and stormwater system upgrades
Future Phases: Freeway capping and broader I-5 improvements
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