In a June 27th press release from CalTrans District 1, it has been announced that a $40 million allocation has been made 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 a recent California Transportation Commission 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 $40 million represents the essential first-year funding for the Plans, Specifications, and Estimates (PS&E) phase, which is estimated to total $225 million. The remaining $185 million is expected to be programmed in 2026.
“This crucial step toward more funding marks a critical milestone in our efforts to deliver a long-term solution at Last Chance Grade,” said Caltrans District 1 Director Matt Brady. “When the design phase is funded, we’re one step closer to building this vital and monumental project for Del Norte County and the North Coast. We’re grateful for the leadership of our elected officials and the continued support of our partners, stakeholders, and communities. Together, we’re advancing a project that will strengthen regional resilience for generations.”
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. We thank U.S. Congressman Jared Huffman, California Senate President pro Tempore Mike McGuire, Assemblymember Chris Rogers, and the California Transportation Commission for their leadership and support in moving this transformative project forward.
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.
