The Oregon Transportation Commission has approved the next phase of construction for the I-5 Rose Quarter Improvement Project in Portland. The unanimous decision allows the Oregon Department of Transportation (ODOT) to use $167 million in secured funding for work scheduled to begin in 2027.
Commissioners instructed ODOT to collaborate with local and regional partners on the scope of the proposed construction. They called for a plan that addresses both interstate upgrades and improvements to local streets and infrastructure, while maintaining project timelines and commitments to reconnecting the Albina district.
During Thursday’s meeting, commissioners reviewed public input from various groups. They stressed the need for continued engagement with community members, freight interests, and all levels of government as plans are finalized. ODOT was directed to provide a progress update on this engagement by early 2026.
Work is currently underway on Phase 1A of the project, which is expected to finish by early 2027. This phase includes repaving near the Oregon Convention Center, strengthening road decks, adding seismic resiliency to bridge structures, extending merging lanes onto I-5 southbound between key interchanges, installing new electronic safety signs near I-84 ramps, and improving stormwater treatment systems. Construction is taking place near Greeley Avenue exit, I-405 ramps in north Portland, and an elevated section close to the Convention Center.
Funding for both phases comes from state and federal sources specifically allocated for infrastructure projects; these funds cannot be used for maintenance or agency operations. None of the money from Oregon’s recently passed transportation package will go toward this project—those funds have been earmarked for highway maintenance, transit operations, agency costs, and support for city and county transportation agencies.
The I-5 Rose Quarter Improvement Project covers a 1.8-mile stretch—the only two-lane segment of I-5 through a major urban area between Canada and Mexico—and it has Oregon’s highest crash rate among urban interstates as well as being its most congested bottleneck with daily congestion lasting up to 12 hours.
According to ODOT: “The purpose of the I-5 Rose Quarter Improvement Project is to improve safety and congestion where I-5, I-84 and I-405 converge and to reconnect the Albina neighborhood through the construction of a highway cover over a portion of I-5. Project benefits include improving safety and mobility on local streets, creating new space for community development, and creating jobs that result in a diverse and skilled workforce.”
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