
A project to ease congestion, improve safety, and better connect south Santa Clara County residents to jobs, schools and services broke ground last week.
The Santa Clara Valley Transportation Authority (VTA), Caltrans and local leaders marked the official start of the long-anticipated US 101/SR 25 Interchange Upgrade Project at the groundbreaking.

“This project represents a shared investment in the safety, operational improvements, mobility, and future of this region," said MTC Commissioner and Caltrans District 4 Bay Area Director Dina El-Tawansy. "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.”
MTC supported the project via Trade Corridor Enhancement Program funds.
The work 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. Construction is expected to last through 2027.

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 $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.
The groundbreaking took place in Gilroy a short distance from the construction site and featured representatives from VTA, Caltrans, and Santa Clara and San Benito Counties.

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