DOT providing Virginia $90M to improve I-81 corridor safety

The Department of Transportation (DOT) today announced Virginia’s Commonwealth Transportation Board (CTB) will receive two Transportation Infrastructure Finance and Innovation Act (TIFIA) loans totaling up to $89.7 million from the Build America Bureau.

The package will fund vital capacity and safety upgrades along 325 rural miles of I-81, a key East Coast freight route carrying 43% of Virginia's interstate truck traffic.

The projects will transform I-81 by:

• Adding dedicated truck climbing lanes in Washington County and Augusta County, allowing slow-moving heavy trucks to climb steep hills without blocking passenger cars
• Fixing dangerous merging bottlenecks by extending exit ramps in Wythe County and adding merge lanes around Wytheville to give drivers more room to speed up or slow down safely
• Replacing aging bridges over Peppers Ferry Road and the I-81 northbound bridge over I-77 to guarantee long-term corridor reliability

“By upgrading the Commonwealth’s transportation infrastructure, reducing dangerous bottlenecks, and separating freight and passenger traffic, Virginia families and freight will move more safely and efficiently across the entire Mid-Atlantic region,” said Sean P. Duffy, U.S. Transportation Secretary.

Federal funding part of $4 billion project

The package supports Virginia’s $4 billion I-81 Corridor Improvement Program, which is projected to generate $5.2 billion in economic activity, supporting regional growth and job creation. Construction on many projects is already underway, with completion slated for late 2035.

“By securing a TIFIA loan at half the standard interest rate, the Commonwealth of Virginia is delivering these critical improvements faster and more affordably,” said Morteza Farajian, Build America Bureau Executive Director. “By cutting interest costs in half and stretching taxpayer dollars, this project serves as a national blueprint. It proves that innovative financing can help rural communities deliver vital corridor improvements faster while freeing up resources for future infrastructure needs.”

The two loans, totaling up to $47.6 million and $42.1 million respectively, take advantage of low interest rates made possible by the TIFIA Rural Project Initiative and build on Secretary Duffy’s broader campaign to eliminate traffic bottlenecks across America.

“As a vital commercial corridor not only for Virginia but the entire east coast, additional travel lanes, new bridges and interchange improvements are enhancing safety and reducing congestion on I-81,” said Nick Donohue, Virginia Transportation Secretary. “The TIFIA loans will help Virginia stretch its transportation dollars and continue building the interstate corridor all travelers deserve.”