Austin loses $105M in federal funding for cap

AUSTIN, Texas — Millions of dollars in federal funding for a major project in Austin are now off the table.

According to newly obtained city memos, the city of Austin learned Wednesday that Austin will no longer get $105 million in Neighborhood Access and Equity (NAE) Grant funding for the Interstate 35 cap-and-stitch project.

The caps were meant to connect East Austin and Downtown Austin with parks and other spaces over the roadway. The caps were set to run from Cesar Chavez Street to Fourth Street, Fourth Street to Seventh Street, and 11th Street to 12th Street and would have also included two pedestrian bridges to be installed near 41st Street to connect to CapMetro's Red Line rail.

The city says the funds were part of a grant program that was cut in the "One Big Beautiful Bill" that