HAGERSTOWN – After years of delay, the expansion of Maryland’s Interstate 81 is again moving forward after state lawmakers green-lit funding for the project’s Phase 2 in its fiscal 2026 budget.
The $99.1 million project, now slated to begin construction in mid-2027, will widen a nearly four-mile stretch of I-81 from four to six lanes, which will address chronic safety issues and fuel economic growth in Washington County.
Spanning from Lappans Road near Williamsport to the railroad bridges north of Halfway Boulevard, the project is the second of four planned phases to modernize Maryland’s portion of the highway, which snakes more than 850 miles north-to-south from Tennessee all the way to the Thousand Islands Bridge into Canada.
Phase 1, covering the southern segment, was completed in 2020, but subsequent phases stalled as the Department of Transportation grappled with statewide budget constraints. Reinstatement of I-81 funding, part of Gov. Wes Moore’s $67.3 billion budget unveiled in April 2025, gave a new lease on life to the long-delayed project.
Safety is a primary impetus behind the rejuvenation of the I-81 projet. From 2021 to 2023, seven fatalities occurred along the corridor in Washington County, resulting in a fatality rate of 0.7 per 100 million vehicle-miles-traveled, higher than the statewide average of 0.5 for similar roadways.
“The proposed improvements of widening the roadway from four to six lanes would improve traffic safety,” said State Highway Administration spokesman Danny Allman. “Studies indicate the lane additions could reduce crashes by 15 to 30 percent.”
Additional safety enhancements include ramp improvements at the I-70 and Halfway Boulevard interchanges, which will provide longer deceleration and acceleration lanes to reduce congestion-related accidents. “These changes too will make a tangible difference for drivers,” Allman added.
Economic stakes are also critical for Washington County. Its strategic location at the crossroads of I-81 and I-70 has made the county a hub for industrial and commercial development. The region has seen a boom in distribution centers, including a new facility for a kitchenware firm near Hagerstown, alongside the Hitachi Rail manufacturing plant in Halfway.
In 2024, the highway handled an estimated 65,000-80,000 vehicles daily, with truck traffic comprising a significant portion due to the area’s logistics industry. Projections show a rise of up to 90,000 daily vehicles, underscoring the need for expanded capacity.
The journey to Phase 2 has been fraught with setbacks. Budget constraints led to a six-month pause in major design elements, with some contracts canceled and others temporarily halted. With funding restored, design work has resumed and is expected to ramp up fully by July 1, when the new fiscal year begins.
“Many of the major project design elements went on hold due to fiscal constraints,” Allman said. “Given the relatively short period of time before design funding was restored, we anticipate a relatively easy transition back into full design activities”.
The design phase, which builds on the 2010 planning phase that identified various alternatives for the project, should conclude by mid-2027, with construction to follow immediately, weather permitting. Construction is expected to take four years, opening the widened stretch to traffic by late 2031 or early 2032.
The project’s $99.1 million cost is subject to economic fluctuations and relies heavily on federal funding, with nearly $2.7 million of the $3.8 million allocated for fiscal year 2026 coming from federal aid.
Amid concerns about federal funding cuts, MDOT is working closely with partners to secure authorized levels. “This project is contingent on federal funding,” Allman said. “We continue to work with our partners on any changes that may affect authorized funding levels.”
Maryland Transportation Secretary Paul Wiedefeld expressed optimism that the project is definitively back on track, citing the project’s “very strong and organized” community support as a key factor in securing resources.
“The I-81 project has long been a priority for Washington County, and we’ve heard loud and clear from the community about the need for improved safety and capacity along this corridor,” Wiedenfeld said. “Our commitment to working with local leaders and residents ensured this project reflects their input and addressed long-standing concerns.”
To bolster transportation funding, Maryland lawmakers approved a $5 per-tire tax set to begin October 1 to address declining gas tax revenue driven by the rise of hybrid and electric vehicles, a nationwide challenge.
“The new tire tax goes toward the overall Transportation Trust Fund,” Allman said, noting that the fund supports projects like I-81 by meeting state cost-match requirements or funding additional initiatives.
Beyond the lane additions, Phase 2 includes replacing bridge structures over the CSX railroad tracks, upgrading drainage systems and stormwater management, implementing noise abatement infrastructure, installing new overhead traffic signs and dynamic message boards and adding landscaping.
“The federal infrastructure law has provided a critical opportunity to advance projects like I-81, and we’re working closely with our partners in Washington County to maximize these funds to improve safety and capacity along this vital corridor,” Weidenfeld said.
