Caltrans District 1 announced a USD 40 million allocation toward the design phase of the Last Chance Grade Project along U.S. Highway 101 south of Crescent City in Del Norte County. This funding will advance plans for a proposed 6,000-foot tunnel—the longest in California—which would bypass the landslide-prone area and provide a long-term, resilient realignment of this critical coastal route.

Approved at the 26 June California Transportation Commission (CTC) meeting in Sacramento, this allocation marks a significant milestone toward securing a lasting solution to one of the state’s most geologically vulnerable stretches of highway. The USD40 million represents the essential first-year funding for the Plans, Specifications, and Estimates (PS&E) phase, which is estimated to total USD225 million. The remaining USD185 million is expected to be programmed in 2026. 

Since its construction, this section of U.S. 101 has required ongoing and costly maintenance. As a vital connection between Del Norte County and the rest of the North Coast, any closure at Last Chance Grade carries substantial economic and service consequences for the region.

Caltrans is committed to delivering this project through collaboration, innovation, and a strong focus on preservation and efficiency.

While Caltrans continues to evaluate options to accelerate the timeline, construction could begin as early as 2030, with the tunnel projected to open in 2038.

For further on the project click here for the tunnelbuilder archive and visit https://lastchancegrade.com/ and https://dot.ca.gov/caltrans-near-me/district-1/d1-news. 26/25.