Austin loses $105M in federal funding for I-35 Cap and Stitch project

AUSTIN, Texas — Austin leaders are working to keep the I-35 cap and stitch project on track after learning more than $100 million in federal funding is now off the table.

According to a memo from the city’s Intergovernmental Relations Office, the $105 million grant awarded in 2023 through the federal Neighborhood Access and Equity Program has been rescinded.

The funding was cut as part of the “One Big Beautiful Bill,” a sweeping federal spending package signed by President Donald Trump last month…

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