The Austin City Council has approved $104 million for the “Cap and Stitch” initiative on Interstate 35 (I-35).
On May 22, the council voted 8-2, with one abstention, committing the city to fund critical infrastructure elements for a project that could transform Interstate 35 from a barrier into a connector, creating up to 25 acres of new public space in the heart of Austin.
The project is a component of the Texas Department of Transportation’s (TxDOT) expansive $4.5 billion Capital Express Central project that began in October 2024. The broader project is an extensive infrastructure endeavor to reconstruct an 8-mile stretch of I-35 through central Austin—from SH 71/Ben White Boulevard to US 290 East—and includes lowering the highway, adding non-tolled high-occupancy vehicle (HOV) lanes and enhancing pedestrian and cyclist pathways.
This infrastructure project is intended to connect downtown and East Austin by “caps”—large deck plazas that host parks, trails, buildings and other community spaces. The caps will be designed within the existing community.
The “stitch” is an expanded east-west bridge over the sunken I-35, designed to enhance pedestrian and cyclist connectivity. These bridges feature wide sidewalks, dedicated bike lanes, seating areas and green spaces that help reduce noise and air pollution, creating a safer and more inviting crossing experience.
When I-35 was constructed in the 1950s, the roadway divided East and West Austin, displacing communities and creating socioeconomic barriers. The cap and stitch project is designed to bridge this historical divide.
The Downtown Austin Alliance has been instrumental in advancing the project. In 2019, the group convened an Urban Land Institute panel to develop a strategic roadmap for capping and reconnecting the I-35 corridor, laying the groundwork for the project’s vision. In 2021, the group launched the “Our Future 35 Engagement Series” to gather input from the community.
The advocacy efforts culminated in 2024 when, alongside the City of Austin, the alliance secured a $105 million U.S. Department of Transportation Reconnecting Communities and Neighborhoods grant to fund capping from Cesar Chavez to 4th Street. They were also awarded a $1.12 million planning grant to conduct an Equitable Mobility Study.
The city has submitted applications for a $191 million infrastructure loan from the Texas State Infrastructure Bank and is seeking a $129 million Mega Grant from USDOT.
The $104 million in funding approved in the Austin City Council’s May 22 meeting will go toward elements to support:
- Caps between Cesar Chavez and Fourth Street.
- Caps between Fourth Street and Seventh Street.
- Caps between 11th Street and 12th Street.
- Stitches in North Austin.
The city has until November 2026 to determine whether to proceed with constructing the actual cap structures and amenities in addition to the support infrastructure being funded now.
Early cost estimates for the full Cap and Stitch program range from $600 million to more than $1 billion, making additional funding sources critical to the project’s success.
Image by Olga Fil from Pixabay
