The Oregon Department of Transportation (ODOT) is confronting significant funding challenges for the I-5 Rose Quarter Improvement Project due to a recent domestic policy bill passed by Congressional Republicans.
For the first time, project spokeswoman Rose Gerber indicated in an email that the bill “appears to eliminate federal grant funding” that was expected to contribute around $450 million to the estimated $2.1 billion project.
Despite these obstacles, ODOT leaders assert their commitment to move forward with the project, starting with a state-funded phase slated to begin next month.
This initial effort represents only a small fraction of the project’s total cost, as the majority of funding is now in question.
“ODOT is committed to this project,” Gerber stated, adding that the agency is still examining the impact of the newly passed federal spending bill.
The Rose Quarter project has been a contentious issue for ODOT since 2017, when lawmakers allocated funds to see it through to completion.
Initially proposed for $450 million to alleviate a freight bottleneck, the project has since expanded both in scope and cost.
Now, it includes the construction of a cap over a section of Interstate 5, designed to reconnect the historically Black Lower Albina neighborhood, which was divided when the highway was built in the mid-20th century.
This cap has received support from community advocates, such as the Albina Vision Trust, who view it as a necessary remedy to historical grievances.
Conversely, anti-highway activists continue to challenge the project at various legal junctures, including two active lawsuits.
Currently, the most pressing issue for the project is its funding, particularly following the failure of lawmakers to pass a bill that would have secured additional millions for completion.
Gerber previously reassured the public as the Senate was advancing the budget bill that there was “no indication that the grant dollars are not available for construction.”
However, after President Donald Trump signed the “One Big Beautiful Bill Act” on July 4, the landscape changed significantly.
Among its various measures, the bill rescinds any “unobligated” funds allocated under the Neighborhood Access and Equity Grant Program.
This is the program through which ODOT had secured the pivotal $450 million grant, primarily intended for the highway cap’s construction.
In the wake of this development, ODOT expressed hope that the grant would enable the project to proceed.
Yet, according to federal records, only $37.5 million has been committed or “obligated,” leaving a considerable sum of $412.5 million in limbo.
ODOT officials like Lee Beyer, vice chair of the Oregon Transportation Commission, have remarked on the uncertainty surrounding the situation.
Beyer, a significant advocate for the Rose Quarter project since its inception, voiced skepticism in light of the current budgetary turmoil.
He emphasized that ODOT still possesses the legislative backing to advance, despite the glaring funding predicament.
The Commission is scheduled to meet later this month, where they will be required to reassess their approach given the potential for lost federal funds.
“We’ll obviously have to consider [the federal funding] and probably make a decision about whether we proceed or not,” Beyer acknowledged.
There remains a possibility that the Commission may choose to pause the project while seeking further clarification from state leaders.
Leaders from the Albina Vision Trust remain hopeful about the project’s future, asserting it exemplifies a community-driven approach to urban redevelopment.
JT Flowers, the organization’s director of government affairs, expressed confidence that the project’s significance resonates beyond Oregon, making it a national benchmark for similar initiatives.
“We don’t have definitive answers on this at present,” Flowers noted. “What we can say is that this project remains a priority — not just for the state of Oregon and the city of Portland, but for the entire nation.”
In stark contrast, some experts express skepticism about the viability of the Rose Quarter Improvement Project in light of the funding gap.
Economist Joe Cortright, a long-standing opponent of freeway widening, characterized ODOT’s decision to continue pursuing the project as untenable considering the financial malaise.
Cortright argued that it was “breathtaking” to consider advancing a major project without securing funding for approximately three-quarters of its budget.
He expressed bewilderment at the notion of incurring costs without a concrete plan for the project’s financial backing.
This financial uncertainty was exacerbated by state lawmakers’ inability to pass a substantial transportation package that could have alleviated some of the Rose Quarter project’s funding ambiguity.
A proposal supported by Democrats aimed to dedicate $125 million annually towards this project and other significant transportation initiatives.
Whether this funding remains a possibility is still in question, with indications from Gov. Tina Kotek that she might convene a special session of the Legislature to address road funding once more.
As ODOT navigates this turbulent financial landscape, the future of the I-5 Rose Quarter Improvement Project remains precariously perched, pending potential budgetary resolutions in the weeks ahead.
image source from：opb
