Oregon Begins Portland Rose Quarter Work Despite $1.5B Funding Shortfall

The Oregon Transportation Commission has approved the start of initial construction for the I-5 Rose Quarter project in Portland despite a significant funding shortfall exceeding $1.5 billion. The project, estimated to cost around $2.1 billion, aims to widen the freeway, alleviate congestion at a major junction, and build caps over the highway to reconnect and revitalize the historically Black Albina neighborhood, which was divided by the original freeway construction. Initial work will focus on deferred maintenance such as stormwater improvements and bridge renovations, laying the groundwork for the larger reconstruction phases. Funding challenges remain severe after the Trump administration rescinded a $450 million federal grant and Oregon's legislature failed to pass a transportation funding package, leaving the state with less than a quarter of the needed budget. Officials emphasize that delaying work could increase costs and jeopardize community partnerships, but also acknowledge that there is currently no clear path to fully financing the project. Governor Tina Kotek plans a special legislative session to seek additional transportation funding, though expectations are for modest gains rather than a complete fix.