Austin, TX
Understanding what’s going on with I-35’s expansion in Austin
Interstate 35 is one of the major north-south routes that cuts through America’s heartland, connecting major cities like Dallas, Oklahoma City, Minneapolis-Saint Paul.
It’s also the source of major traffic headaches, especially in Austin, where it will soon undergo a major expansion – a $4.5 billion project that could take a decade to finish – that includes new managed lanes, tearing down the upper decks near the UT campus, and a whole lot more.
In this latest installment of The Drill Down, a monthly feature highlighting investigative and enterprise journalism from The Texas Newsroom and our public radio partners across the state, we spoke with KUT News transportation reporter Nathan Bernier. He’s been following the project’s many developments over the years, and he’s just published a comprehensive look at what the construction will entail.
This transcript has been edited lightly for clarity:
Texas Standard: What are some of the biggest changes happening to I-35 here?
Nathan Bernier: Well, you touched on a couple of them: adding two managed lanes, or high-occupancy vehicle lanes, in each direction. But they’re going to increase the number of general purpose lanes – your standard non-high-occupancy vehicle lanes – at various points.
Of course, tearing down those elevated lanes known as the upper decks, but also sinking the main lanes 30 to 40 feet below ground level through downtown. And that’s going to give the city and the University of Texas a chance to spend hundreds of millions of dollars, if they can come up with the money, to cover those lanes, essentially tunneling them through parts of downtown Austin.
And some other changes as well, such as narrowing the main lanes and the managed lanes from 12 feet to 11 feet wide. And there’s so many pieces to this – you know, we could talk for an hour about it – but those are some of the big changes coming to I-35 through Central Austin, that eight-mile stretch.
» The Drill Down: Investigative and enterprise stories from across Texas
One aspect of all this that has a lot of folks upset is the displacement of people and businesses. This project, as I understand, is going to force out more than 100 homes and businesses. I gather you’ve been talking to some of those people who may be driven out. What are you hearing?
Yeah, that’s one of the main things we wanted to do with this story is to find out who’s affected by it, who’s being impacted. Whether you support the expansion or not, there are harms being done to people along the project length.
And so it’s really just a matter of looking at property tax records and looking at TxDOT documents and just walking up and down the frontage roads to try and find people who are being told they’re going to have to leave. We have a series on that called Driven Out.
One person I spoke to recently is named Carl Judd. He lives in a Deluxe Inn motel right on the highway that’s going to be torn down to create a construction staging area where highway building machines and equipment can be stored. He’s lived in this motel for 11 years and is 69 years old; he’s on Social Security, and he doesn’t know what’s going to happen next.
“What am I going to do? No idea. No idea at all. Because I need a place where – I’m older; I’m set in my ways. I smoke cigarettes. I drink beer,” he said. “I’m entitled to three months notice and possibly relocation expenses, which would be helpful because it’s going to be really difficult to find an apartment for $1,000.”
Austin has the highest rents in Texas, so finding an affordable place near public transit is going to be hard for him.
Let’s talk a little bit about how you went about reporting this story. It’s such a huge topic. How did you approach it? You mentioned that part of it is just getting out on the street and talking with people – but also, you’ve got to break this down in a way that kind of makes sense to a larger audience.
Yeah. It’s very difficult to wrap your head around this project because it is so large and it’s in a very populated area. One of the things that I did was looking through TxDOT’s documents first, because they’ve published thousands of pages of details on this. They’re required to under federal law as part of an environmental study.
And there are so many details buried in these documents that aren’t in the, you know, the executive summary – really interesting stuff. And there’s so many stories in there that I love to get to, and I’m trying to get to them all.
But of course, not all the details are in the documents, and a lot of it does require, as you say, just going down, shoe-leather journalism, knocking on doors and asking people what’s happening to them. Of course, looking at county tax records is a really helpful way to find out which properties are in the new right of way, the expanded footprint, and who owns them.
So it’s a combination of those techniques and filing public information requests with TxDOT to get more details on stuff they don’t make publicly available. For example, I got the calendar of an official who’s overseeing the program to find out who they’re meeting with and try and follow up with those folks to get information.
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Well, any major roadblocks so far? No pun intended.
Well, yeah. I mean, one of the hardest things about this is just how much information there is. And it’s difficult to process, to read through thousands of pages of documents. It’s time-consuming.
TxDOT will answer my questions, but not always to the degree of detail I would like. And they don’t always make officials available for interviews, so sometimes I need to show up at the events where they’re speaking to people and and get them on the record there, when there’s no communications person around.
So what are you working on next, Nathan?
I’m just continuing to look at the impacts of this project on Austin. I’m trying to explain in an unbiased way what is happening, because this is bringing a lot of change. And some people are affected deeply by this. So I think, no matter what you think of the project, people deserve to know about it, because I-35 goes through right through the middle of the city.
We’re talking to more people who are being displaced. There’s also a story that I need to do on a large drainage tunnel that will be up to 22 feet in diameter that’s going to be bored underneath a very populous street in Austin, Cesar Chavez. So there’s so much more to this project to cover. And, you know, it’s an endless source of stories.
And let’s not forget, I-35 is the backbone for U.S. trade with its now No. 1 trading partner Mexico, which has just overtaken China in the most recent numbers.
Can people reach out to you and send in questions or tips or anything like that?
Absolutely. I’d love to hear from people affected by it, or also TxDOT employees or construction company workers if they have information and they want to share it privately, confidentially, to me, behind the scenes. The best way is to email me: nathan@kut.org, and I check that all the time.
Listen to an extended interview with Nathan Bernier in the audio player at the top of this story.
Austin, TX
New Texas law tightens rules for autonomous vehicle companies, including Waymo
AUSTIN, Texas — Self-driving cars have become a common sight on Austin streets, but a new Texas law is adding tougher requirements for the companies behind the wheelless vehicles.
Senate Bill 2807 imposes stricter rules on autonomous vehicle companies operating in the state, including state authorization, emergency response plans for law enforcement, and a public portal where residents can verify operators and file safety complaints.
The changes come as Austin continues to track incidents involving autonomous vehicles. The city’s autonomous vehicle dashboard shows 75 incidents in 2026, including a collision, eight near misses, and seven incidents of ignoring police direction.
Attorney Drew Gibbs, a partner at Slingshot Law, said one crash involved a Waymo vehicle.
“There was a T-bone collision. A pretty serious T-bone collision where a Waymo just crashed into the side of my client’s vehicle,” Gibbs said.
ALSO| Waymo files voluntary software recall over flooded-lane risks on high-speed roads
KEYE
One of the incidents of ignoring police direction happened during the mass shooting on West Sixth Street back in March, when three people died, and 15 others were injured.
Austin Police Association President Michael Bullock said autonomous vehicles can struggle in unusual situations.
“It didn’t impede on anything in the moment, but it’s not necessarily uncommon where these vehicles don’t quite know how to deal with these one-off scenarios,” Bullock said.
The new law requires autonomous vehicle companies to be authorized by the state, to provide an emergency response plan for law enforcement, and to participate in a public-facing portal that allows the public to verify operators and submit safety complaints.
Kara Kockelman, a professor of transportation and engineering at the University of Texas at Austin, welcomed the added oversight.
“I’m glad that the state is taking this a bit more seriously now,” she said. “It’s important not to just let others slip in without kind of meeting those basic minimums.”
Bullock said the emergency planning requirement may not make a major difference in fast-moving situations. Asked how impactful it is to have a fully laid out emergency response plan, Bullock said, “These plans are great, but it takes time to work through all of those versus the immediacy of having someone behind the wheel.”
The four autonomous vehicle companies operating in Austin — Waymo, Zoox, AV-Ride, and Tesla — are all state-authorized.
The Texas DMV said an autonomous vehicle company can lose its authorization to operate in Texas if the agency deems the vehicles are operating in a way that endangers public safety.
Waymo was contacted for comment, but had not responded.
Austin, TX
Jane Nelson, Texas’ top election official, stepping down as Secretary of State
AUSTIN, Texas – Texas Secretary of State Jane Nelson said Tuesday she will leave the post next month.
What we know:
In a statement, Nelson said her resignation will be effective July 17 but did not provide a reason for the departure.
“It has been an honor to serve the people of Texas in this role,” Nelson said. “My time as Secretary came at an important moment for Texas, and I am proud of what we have been able to accomplish as an agency in under four years.”
Nelson has served in the role since 2023.
Among other things, the Secretary of State oversees elections and business filings in the state and serves as the chief diplomat of Texas.
View of Texas State Senator Jane Nelson, during the 80th Texas Legislature, on the floor of the Senate at the Texas State Capitol, Austin, Texas, January 22, 2007. (John Anderson/The Austin Chronicle / Getty Images)
What they’re saying:
Texas Gov. Greg Abbott described Nelson as extraordinary.
“I am deeply grateful for her long and loyal service and outstanding leadership. She has represented our state with grace and honor across the globe, and Texas is better because of it,” Abbott said. “Cecilia and I wish her all the best in the next chapter of her distinguished career.”
Dig deeper:
According to the Secretary of State’s office, Nelson has presided over seven statewide elections during her tenure with a cumulative 27 million ballots cast and broke a record with more than 3 million active business filers.
Nelson also served three decades in the Texas Senate, where she remains the longest-serving Republican in state history.
The Source: Information in this story came from the Texas Secretary of State’s office.
Austin, TX
Austin OKs $2.35 billion of revenue bonds, eyes GO bond election
Michael Dorman
Austin, Texas, is revving up to sell $2.35 billion of debt for a convention center and a wastewater treatment plant, while a legal battle continues over bonds to help finance a light rail system.
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The bond boom comes as the city council voted on Thursday to pursue the development of a $390 million baseline general obligation bond package for the November ballot despite a call by Mayor Kirk Watson to wait until 2028.
“I believe we can and we should bring forward significant investments in the future,” he said. “In fact, if we restore compliance with our financial policies and we maintain the discipline we actually will have greater future capacity to do more for this community in 2028.”
A bond election would
The city, which last held a successful GO bond election in 2022 for $350 million of debt for affordable housing, had $1.03 billion of unissued voter-approved GO bond authorization as of the Sept. 30 end of fiscal 2025. Last year,
On Thursday, the city council signed off on a $34.5 million wrongful prosecution and conviction settlement with four individuals to be financed through the sale of non-voter-approved GO bonds.
The council approved up to $1.35 billion of special tax revenue bonds on May 21 for a $1.6 billion project to replace the city’s now-demolished convention center with a facility that will increase rentable event space to 620,000 square feet from 365,000 square feet.
Rich Saskal
The bonds are backed with revenue from certain city hotel occupancy taxes and incremental state tax revenue generated within a project finance zone the city established in 2024. Amounts and timings for issuing the debt are being determined, according to the city, which filed a petition with a Travis County District Court for an expedited validation of the bonds.
An ordinance approved in October
The city also plans to refund hotel occupancy tax-backed debt issued for the prior convention center in order to pledge a 4.5% hotel tax for the upcoming bonds.
“The refunding bonds are a separate, but related item to the expansion bonds and will only be secured by 2% venue HOT,” city documents said. “The 2% venue HOT will not be pledged to the expansion bonds and will cease to be collected upon final maturity or early payoff of (the refunding bonds).”
A petition drive that would have delayed the project fell 494 signatures short of a requirement for 20,000 valid signatures of registered voters, Austin City Clerk Erika Brady determined in November.
Petition backers are appealing a district court’s refusal to force validation in state appellate court after the Texas Supreme Court dismissed
The petition drive by Austin United PAC and others sought a ballot measure to stop the demolition and reconstruction of the convention center for seven years — or until the project was approved by voters — and prioritize city funding for local live music, arts, cultural, and outdoor tourism.
The Austin City Council also approved as much as $1 billion of water and wastewater system revenue bonds last month for the Walnut Creek Wastewater Treatment Plant expansion and enhancement project. The bonds will be used to obtain a direct low-interest loan from the U.S. Environmental Protection Agency’s Water Infrastructure Finance and Innovation Act program.
Other financing sources for the $1.5 billion project are $59 million from the Texas Water Development Board Clean Water State Revolving Fund program and funding from Austin Water.
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The plant, which serves more than 50% of Austin and operates at a treatment capacity of 75 million gallons per day, will have its capacity increased to 100 MGD, helping meet future demand and requirements set by the Texas Commission on Environmental Quality for Austin’s projected growth of 1.5 million by 2040, according to a city statement.
A legal logjam over a light rail system eased May 22 when the Texas Supreme Court finally ruled on a procedural issue related to an initial $150 million of bonds for the project. The high court ordered a Travis County Court judge to decide whether the bonds’ issuer, the Austin Transit Partnership, a nonprofit corporation created by the city and Capital Metro Transportation Authority, has standing to seek court validation for the debt.
City taxpayers who filed a lawsuit in 2023, along with the Texas Attorney General’s Office have been challenging the legality of the bonds, which would be paid off with a portion of Austin’s operation and maintenance property taxes
Escalating costs led ATP to downsize Project Connect to an initial less than 10-mile, 15-station system with a similar price tag. The completion of a federal environmental review in January allowed the project to continue a process
ATP said Project Connect is moving forward with construction scheduled to begin next year.
“We are confident in our case and look forward to our day in court,” ATP said in a statement. “The pending litigation has not slowed our progress advancing Austin light rail, which has hit major milestones in the federal funding process, design, and pre-construction work this year.”
Bill Aleshire, an attorney who filed the taxpayers’ lawsuit, cautioned that several issues remain before the court, including the legality of the downsized project and the ability to pay off bonds with property tax revenue that is supposed to be used for operations.
“Their federal funding is uncertain, their ability to issue bonds is uncertain, and they just stubbornly will not listen to us and say it’s time to pause Project Connect and rethink it, that maybe rail isn’t the best way to go at this time and maybe we can’t afford it at this time,” he said.
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