Shovels in the Ground for the Critical US 101/SR 25 Interchange Upgrade

SAN JOSE, CA – The Santa Clara Valley Transportation Authority (VTA), Caltrans, and local leaders marked the official groundbreaking of the long-anticipated US 101/SR 25 Interchange Upgrade Project—designed to ease congestion, improve safety, and better connect South County residents to jobs, schools, and services.

“We are not just improving roads—we are creating lasting connections between the communities of Morgan Hill and Gilroy and our San Benito County neighbors—ensuring access to opportunity, future growth, and the success of our region,” said VTA Board Chair, and Campbell Mayor, Sergio Lopez.

The event took place in Gilroy a short distance from where the construction is happening, featuring representatives from VTA, CalTrans, and Santa Clara and San Benito Counties. The project will bring major improvements to one of the region’s most significant commute chokepoints, with the construction of a new direct connector ramp from southbound US 101 to southbound SR 25, enhanced on and off-ramps, a new signalized intersection at SR 25 and Mesa Road/Southside Road, and better pedestrian and bicycle access.

This $136 million project is funded through a combination of local sales tax measures, state transportation dollars, and federal contributions. It’s one of many projects on which VTA has partnered with the state transportation agency.

“This project represents a shared investment in the safety, operational improvements, mobility, and future of this region. With $59 million in SB 1 funds for construction capital and support from VTA’s Measure B, we’re building more than infrastructure—we’re building long-term regional connections,” said Caltrans District 4 Bay Area, Director Dina El-Tawansy.

Senate Bill 1 (SB 1) has invested approximately $5 billion annually toward transportation projects since 2017. It provides funding split between the state and local agencies. Road projects progress through construction phases more quickly based on the availability of funds, including projects that are partially funded by SB 1.

For more information visit: Build.ca.gov and Rebuildca.ca.gov

South Santa Clara County’s and San Benito County’s populations have grown steadily as residents seek more affordable housing options, increasing the urgency to provide smoother, safer, and more reliable routes between Santa Clara and San Benito Counties. Construction is expected to last through 2027.

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