AUSTIN, Texas — City of Austin officials on Friday said the city must provide funding sooner than initially planned for phase two of the “caps and stitches” project over Interstate 35, following a change in the project’s funding schedule from transportation partners.
Phase two will add deck-style “caps” and connecting “stitches” over parts of I-35 to support parks, public spaces, and commercial development while the Texas Department of Transportation rebuilds and lowers the highway through downtown.
City staff said the revised schedule requires early local funding to align with TxDOT’s construction timeline and integrate the caps and stitches with the highway redesign. Detailed cost estimates and funding options will be presented to City Council in upcoming budget cycles.
Officials noted that final design, locations, and land uses will depend on technical studies, community input, and coordination with state and federal partners. The city continues to explore funding through bonds, tax increment financing, federal grants, and public-private partnerships.
City representatives said they will update the public through community meetings, online briefings, and formal presentations before City Council action on phase two commitments.
