The projected cost for widening and capping Interstate 5 through Portland’s Rose Quarter has now risen to an estimated range of $1.96 billion to $2.08 billion, a significant increase that has prompted sharp criticism from Oregon transportation commissioners this week.
This revised cost estimate for the I-5 Rose Quarter Improvement Project marks the first update since 2023 and reflects a notable jump from the previous forecast, which anticipated expenses between $1.5 billion and $1.9 billion.
The announcement comes as the Oregon Department of Transportation (ODOT) faces mounting scrutiny from both lawmakers and the public over ongoing projects that have exceeded initial budget projections. The department is seeking legislative approval for billions in additional taxpayer funding for major highway projects, including the Rose Quarter initiative, which were originally slated to be covered by a 2017 spending package.
The Rose Quarter project aims to alleviate congestion on Interstate 5 in central Portland by adding an auxiliary lane in each direction and making modifications to highway ramps. Additionally, it plans to implement significant improvements to the surrounding area, including a large highway cap designed to reconnect the historically Black Albina neighborhood, which suffered greatly when I-5 was constructed.
The inclusion of the highway cap was not part of the original project approved by lawmakers in 2017, contributing to the substantial cost increases from an initial estimate of $500 million.
When ODOT presented its latest cost estimate, it acknowledged that the 2023 figures did not adequately account for construction risks and utilized a lower inflation rate of 3% instead of the more realistic 4%. Furthermore, the updated plan extends the project timeline, delaying completion of the highway cap by an additional year to 2034, which further escalates costs.
ODOT has initiated efforts to keep the project budget under $2 billion. However, some transportation commissioners expressed concerns that costs may rise even more, particularly due to tariffs implemented during the Trump administration.
