Overview
Located in southern Santa Clara County, the Santa Teresa Boulevard Extension project would provide a new direct connection from the area south of the City of Gilroy to US 101 and SR 25, and bypass existing bottlenecks further north along US 101. The extension project will complement the US 101/SR 25 interchange Phase 1 project that removed the existing connection between Santa Teresa Boulevard and Castro Valley Road with US 101.
The extension project would also establish a new bike path connection between Gilroy, SR 25, and destinations further south that would allow bicyclists to avoid using the shoulders of US 101 in this area as they currently do today, providing a much-improved connectivity gateway to encourage bicycle use along this corridor.
Objectives
- Provide new vehicle and bicycle connectivity between Santa Teresa Boulevard and the US 101/SR 25 interchange.
- Reduce congestion on US 101 between the US 101/SR 25 and US 101/Monterey Road interchanges
- Enhance local and regional access to the US 101 trade corridor.
Project Features
The project would construct a new two-lane roadway connection from Santa Teresa Boulevard, just north of Castro Valley Road, to the upcoming US 101/SR 25 interchange Phase 1 project. The two-way Santa Teresa Boulevard Extension would widen to four lanes as it approaches the SR 25/Southbound US 101 ramps intersection to match the proposed roadway width at the interchange. Adjacent to the new roadway, a bike path would accommodate bike lanes traveling in both directions, while the Project would require reconstruction of the Santa Teresa Boulevard/Castro Valley Road intersection.
Community Outreach
For more information on this project, please call VTA’s Community Outreach at (408) 321-7575, (TTY) 408-321-2330, or community.outreach@vta.org.
Public Scoping Meeting (August 11, 2026 at 6:00 PM)
On August 11, 2026, VTA held a public scoping meeting at the Gavilan College Student Lounge for the proposed US 101/SR 25/Santa Teresa Extension Project. The meeting provided an overview of the project and the environmental review process.
If you missed the meeting, the presentation and display boards are available to download.
You can watch a recording of the presentation on VTA's YouTube Channel.
For more information about this project, email VTA Community Outreach at community.outreach@vta.org, or call (408) 321-7575, (408) 321-2330 TTY.
Funding
The total cost for this project is estimated to be approximately $50 million for environmental clearance, design, right-of-way property acquisitions, and construction. The environmental clearance phase of the project is currently funded with a combination of VTA 2016 Measure B funds and federal funds.
Additional funding will need to be secured for phases beyond environmental clearance. The total project cost is contingent on the final determination of improvements to be constructed.
Schedule
- Environmental | 2025 - 2027
- Design* | 2027 - 2029
- Construction* | 2029 – 2031
* Full funding has not yet been identified.
Overview
Located in southern Santa Clara County, the Santa Teresa Boulevard Extension project would provide a new direct connection from the area south of the City of Gilroy to US 101 and SR 25, and bypass existing bottlenecks further north along US 101. The extension project will complement the US 101/SR 25 interchange Phase 1 project that removed the existing connection between Santa Teresa Boulevard and Castro Valley Road with US 101.
The extension project would also establish a new bike path connection between Gilroy, SR 25, and destinations further south that would allow bicyclists to avoid using the shoulders of US 101 in this area as they currently do today, providing a much-improved connectivity gateway to encourage bicycle use along this corridor.
Objectives
- Provide new vehicle and bicycle connectivity between Santa Teresa Boulevard and the US 101/SR 25 interchange.
- Reduce congestion on US 101 between the US 101/SR 25 and US 101/Monterey Road interchanges
- Enhance local and regional access to the US 101 trade corridor.
Project Features
The project would construct a new two-lane roadway connection from Santa Teresa Boulevard, just north of Castro Valley Road, to the upcoming US 101/SR 25 interchange Phase 1 project. The two-way Santa Teresa Boulevard Extension would widen to four lanes as it approaches the SR 25/Southbound US 101 ramps intersection to match the proposed roadway width at the interchange. Adjacent to the new roadway, a bike path would accommodate bike lanes traveling in both directions, while the Project would require reconstruction of the Santa Teresa Boulevard/Castro Valley Road intersection.
Community Outreach
For more information on this project, please call VTA’s Community Outreach at (408) 321-7575, (TTY) 408-321-2330, or community.outreach@vta.org.
Public Scoping Meeting (August 11, 2026 at 6:00 PM)
On August 11, 2026, VTA held a public scoping meeting at the Gavilan College Student Lounge for the proposed US 101/SR 25/Santa Teresa Extension Project. The meeting provided an overview of the project and the environmental review process.
If you missed the meeting, the presentation and display boards are available to download.
You can watch a recording of the presentation on VTA's YouTube Channel.
For more information about this project, email VTA Community Outreach at community.outreach@vta.org, or call (408) 321-7575, (408) 321-2330 TTY.
Funding
The total cost for this project is estimated to be approximately $50 million for environmental clearance, design, right-of-way property acquisitions, and construction. The environmental clearance phase of the project is currently funded with a combination of VTA 2016 Measure B funds and federal funds.
Additional funding will need to be secured for phases beyond environmental clearance. The total project cost is contingent on the final determination of improvements to be constructed.
Schedule
- Environmental | 2025 - 2027
- Design* | 2027 - 2029
- Construction* | 2029 – 2031
* Full funding has not yet been identified.
Timeline
Title
Environmental Clearance
Phase Date Range
-
On August 11, 2026, VTA held a public scoping meeting at the Gavilan College Student Lounge for the proposed US 101/SR 25/Santa Teresa Extension Project. The meeting provided an overview of the project and the environmental review process.
If you missed the meeting, the presentation and display boards are available to download.
You can watch a recording of the presentation on VTA's YouTube Channel.
Title
Design and Engineering
Phase Date Range
-
Title
Construction
Phase Date Range
-
Funding
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