Representatives of the Santa Clara Valley Transportation Authority, Caltrans and local public officials on May 23 marked the groundbreaking of the long-anticipated US 101/SR 25 Interchange Upgrade Project just south of Gilroy.
The project is designed to ease congestion, improve safety and better connect South County residents to jobs, schools and services, according to the VTA.
“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 May 23 groundbreaking took place in Gilroy a short distance from where the interchange construction is happening. The event featured representatives from VTA, CalTrans and Santa Clara and San Benito counties.
“This project is not just about infrastructure; it’s about enhancing the quality of life for everyone who travels through this vital corridor,” said Morgan Hill Mayor Mark Turner.
The interchange 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, the VTA described in a press release.
The $136-million project is funded through a combination of local sales tax measures, state transportation dollars and federal contributions. It is 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 Director Dina El-Tawansy.
Senate Bill 1 (SB 1) has invested about $5 billion annually toward transportation projects since 2017, the VTA said. 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.
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, the VTA’s press release added.
Construction on the highway interchange is expected to last through 2027. Vehicle access to U.S. 101 from Castro Valley Road and Mesa Road is closed during construction.
