Permanent road closures connected to this project. See details below.
The Santa Clara Valley Transportation Authority (VTA), Caltrans, and local leaders marked the official groundbreaking of the long-anticipated US 101/SR 25 Interchange Upgrade Project—designed to ease congestion, improve safety, and better connect South County residents to jobs, schools, and services.
“We are not just improving roads—we are creating lasting connections between the communities of Morgan Hill and Gilroy and our San Benito County neighbors—ensuring access to opportunity, future growth, and the success of our region,” said VTA Board Chair, and Campbell Mayor, Sergio Lopez.
The event took place in Gilroy a short distance from where the construction is happening, featuring representatives from VTA, CalTrans, and Santa Clara and San Benito Counties. The project 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.
This $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.
“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,” said Caltrans District 4 Bay Area, Director Dina El-Tawansy.
Senate Bill 1 (SB 1) has invested approximately $5 billion annually toward transportation projects since 2017. It provides funding split between the state and local agencies. Road projects progress through construction phases more quickly based on the availability of funds, including projects that are partially funded by SB 1.
For more information visit: Build.ca.gov and Rebuildca.ca.gov
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. Construction is expected to last through 2027.
Permanent Road Closures
Due to construction requirements, access at southbound US 101/ Castro Valley Road and southbound US 101/ Mesa Road is permanently closed as of May 2025.
This closure is necessary to make way for the construction of a new, safer, and more efficient southbound off-ramp toward State Route 25 as part of the overall US 101/SR 25 Phase 1 interchange project.
To access Santa Teresa Road or Gavilan College, use the US 101/Monterey St. exit to Monterey Road, W. Luchessa Ave, Thomas Road, and then Santa Teresa Road. Please allow extra travel time, and pay close attention to posted detour signs. We apologize for the inconvenience as we work to improve the entire area approaching the interchange.
Please drive safely through the construction zone. Slow down, follow detour signs, and be alert to workers and equipment.
VTA is committed to keeping the public informed throughout the project. For the latest updates, subscribe for construction alerts at www.vta.org/sr25.
For more information, please call VTA’s Community Outreach at (408) 321-7575, (TTY) 408-321-2330, or community.outreach@vta.org.