Bay Area/ San Jose

Construction Begins on Major Interchange Upgrade at US 101 and SR 25 in Gilroy to Ease Traffic Congestion

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Published on May 25, 2025
Construction Begins on Major Interchange Upgrade at US 101 and SR 25 in Gilroy to Ease Traffic CongestionSource: Google Street View

Shovels hit the dirt near US 101 and SR 25 as local leaders unveiled the start of a large-scale interchange upgrade project intended to address congestion issues and improve regional connectivity. The initiative, a collaboration between the Santa Clara Valley Transportation Authority (VTA), Caltrans, and representatives from neighboring communities, was celebrated in Gilroy, near where the changes will unfold. According to the Valley Transportation Authority, the project is a crucial step forward for South County commuters, aiming to create smoother travel between the growing areas of Santa Clara and San Benito Counties.

Among the upgrades in the pipeline, a new direct connector ramp from southbound US 101 to southbound SR 25 should significantly relieve one of the region's notable traffic gridlocks and the design includes enhancements for pedestrian and bicyclists as well, Caltrans District 4 Bay Area Director Dina El-Tawansy told VTA, "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."

The intricate funding tapestry for the $136 million endeavor comes from local sales tax measures, state transportation coffers, and federal contributions, reflecting a shared commitment among various levels of government to invest in the area's infrastructure. The project is not just a facelift to existing roads, but a means to support the burgeoning movement of people flocking to the more affordable housing in South Santa Clara and San Benito Counties, aiming to provide reliable routes and enhance safety.

Accommodating the work ahead, some roads will cease to exist as they once were. Motorists were informed about permanent road closures at southbound US 101/Castro Valley Road and southbound US 101/Mesa Road starting in May 2025, as part of the transitions necessary for the improvements. The directive for those seeking alternative routes entails taking the US 101/Monterey St. exit to reach their destination. Individuals affected should allow for added time to navigate the detours, which are detailed by the Valley Transportation Authority.