City of Austin has only weeks to decide to fund cap-and-stitch project

Cap and stitch funding update

The Austin City Council has only weeks to decide if it will approve millions in funding for the cap-and-stitch project on I-35 after a federal funding freeze.

AUSTIN, Texas - The city of Austin may have to dish out millions of dollars to fund the cap-and-stitch portion of the Interstate 35 expansion, and only has a few weeks to make a decision.

I-35 cap-and-stitch grant under review

The backstory:

The city of Austin was awarded a $105 million grant to fund the Cesar Chavez-4th Street portion of the project under the Biden administration in March 2024.

However, the House Transportation & Infrastructure Committee has been instructed to scale back on spending federal dollars, putting the Neighborhood Access & Equity grant program in jeopardy.

The city previously said the grant was placed under a 90-day review by the Trump administration and it is unclear if the funds will be granted.

Austin City Council to vote on funding

What they're saying:

"City council is going to vote on May 22nd about whether or not we should send money to TXDOT to build one or more caps for the freeway. And this is a decision that would require the city to front between 50 million and $400 million to the state transportation authority," said council member Mike Siegel (District 7).

Siegel says the caps are concrete decks on the interstate with amenities built on top that would allow for recreational activities. 

"The idea here is that between Cesar Chavez and 4th Street downtown, and also between 11th and 12th streets, we would build these caps, and each cap has multiple aspects of the cost. You know, one is just the design fees, that's a few million dollars. The second layer of cost is what's called the roadway elements," said Siegel.

PREVIOUS COVERAGE: I-35 cap and stitch project in danger

Federal funding for parks and bridges over an expanded I-35 may be in jeopardy.

In a recent meeting, city council members were split on the decision to fund the project with city dollars.

"There's really two competing proposals there. One is the city staff recommendation to only fund about $50 million for the roadway. But then a few of my colleagues are advocating for a more expansive investment. It'll be more like $400 million. And that would fund not just two caps, but basically the roadway elements for five caps. And so there's basically a difference of opinion on council, right," said Siegel.

Council member Zo Qadri (District 9) said in a statement:

 "In my district, residents face unsafe, noisy conditions just trying to cross to the Moody Center, the stadium, or between Hyde Park and Cherrywood, they deserve better. This is our chance to get it right – for today’s residents and future generations."

In response, Siegel argues how he believes city dollars should be used.

"There's all these different infrastructure needs already identified, and that if we ask voters to support those needs, from my point of view at least, that would provide a more direct investment in the people who are here right now. By contrast, the caps, even if we invest in this project, would not be available to the people of Austin for 10, 15, even 20 years," Siegel said.

What's next:

TxDOT has given the city a deadline of May 31 to commit to the funding.