Austin

Feds Drop $10.5 Million to Bust Buda's East Main Bottleneck

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Published on July 06, 2026
Feds Drop $10.5 Million to Bust Buda's East Main BottleneckSource: Google Street View

Buda has locked in $10.48 million in federal transportation funding to rebuild East Main Street between I-35 and Firecracker Drive, the city announced, teeing up a long-planned makeover for one of the city’s busiest corridors. Paired with a $2.62 million local match, the money is set to fund an overhaul that will widen the road, add a raised median and dedicated turn lanes, and build bike-friendly paths on both sides.

City officials said the federal funding is flowing through the Capital Area Metropolitan Planning Organization (CAMPO) and, when combined with the city’s $2.62 million grant match, creates a $13.1 million project budget, according to a press release from the City of Buda. Mayor Lee Urbanovsky called the award “a significant achievement for Buda,” the release noted.

What the rebuild will look like

The current plan would turn East Main into a four-lane corridor with a raised center median, dedicated left-turn lanes and 10-foot shared-use paths on both sides to better serve pedestrians and cyclists. The project also includes upgraded stormwater infrastructure and on-site water-quality treatment, and the work is designed to fit within the existing right-of-way.

Designers reached the 95% final design milestone in April 2025, and the city completed an interim fix in the meantime, adding a dedicated right-turn lane onto the northbound I-35 frontage road while pursuing construction funding, according to the city’s bond project site (Buda Bonds).

Why it matters for Sunfield and commuters

East Main is the primary access route for the Sunfield master-planned community. The city says Sunfield has more than 5,800 planned residential lots east of Firecracker Drive, and the community’s developer plans to extend East Main farther east, according to reporting by Community Impact.

Bond and municipal utility district documents show Sunfield spans roughly 2,790 acres and already includes thousands of single-family lots and amenities, which helps explain why the corridor’s capacity has been stretched by growth. Those details appear in Sunfield's municipal bond materials.

Timeline and next steps

The city said the East Main expansion was selected in CAMPO’s 2028–2031 Call for Projects, and the federal funds are anticipated to be available in 2029, which officials say is the earliest realistic window for construction funding, according to the City of Buda. In other words, the money is on the way, but shovels will not hit the ground tomorrow.

City leaders say they will keep coordinating property and right-of-way needs and will move into bidding and permitting once CAMPO dollars are released. Residents who want to track design progress and timing can follow the bond project page for scheduled updates and public-meeting notices; the Main Street East project page also hosts design documents and status notes for the earlier interim work.

Austin-Transportation & Infrastructure