Project Connect — Austin's Transit Future

Project Connect is Austin's voter-approved transit expansion plan designed to build a modern, multimodal transit system for the growing Austin metro area. Approved by voters in November 2020 with 58% support, the original plan included two light rail lines, a downtown transit tunnel, and expanded bus service. Due to cost overruns, Phase 1 was scaled back significantly: the downtown tunnel was dropped, the route was reduced from 27 miles to 9.8 miles with 15 stations, and service will run at surface level. The $7.1 billion capital cost remains, though total project cost including financing is approximately $8.2 billion per the FTA. The project is managed by Capital Metro and the Austin Transit Partnership (ATP). Note: an ongoing lawsuit challenges the property tax bond funding mechanism.

The current timeline targets construction beginning in 2027, with initial Phase 1 light rail service opening in 2033. This is a significant delay from the original 2029 target. Phase 1 covers 9.8 miles of surface-running light rail from 38th Street/UT south through downtown, splitting to East Riverside and South Congress/Oltorf, with 15 stations. The full Blue Line extension to Austin-Bergstrom Airport is a later phase with no firm date. MetroRapid bus improvements are on a separate, faster timeline with some routes already operational.

The original plan envisioned two full lines spanning 27 miles with approximately 31 stations and a downtown tunnel. Phase 1, as currently planned, is a scaled-back 9.8-mile surface-running route with 15 stations. It runs from 38th Street near UT Austin south through downtown, then splits: one branch goes east to East Riverside Drive and another south along South Congress to Oltorf. The full Orange Line extension to Tech Ridge and the full Blue Line to Austin-Bergstrom Airport are planned for later phases. There is no tunnel in Phase 1 — all service runs at street level.

Historically, properties within a half-mile of rail stations in other U.S. cities see a 10-25% value premium over comparable properties farther from transit. Austin is likely to follow this pattern along the Phase 1 corridor. Neighborhoods near the 15 planned stations — particularly around UT/38th Street, downtown, East Riverside, and South Congress — may see increased demand and price appreciation as construction progresses. However, the scaled-back Phase 1 (no tunnel, surface-running) will have less transformative impact than the original plan. Some nearby properties may also experience construction disruption and noise.

Austin currently has Capital Metro bus service (local and express routes), the MetroRail Red Line commuter rail from downtown to Leander (with stops at Plaza Saltillo, Highland, Crestview, and Lakeline), MetroRapid bus routes (Route 801 on North Lamar/South Congress and Route 803 on Burnet/South Lamar), and park-and-ride express services from suburbs. The system also includes CapMetro Pickup (on-demand microtransit) in select areas. Current transit ridership is modest compared to cities like Houston or Dallas, largely because Austin's bus network does not yet include dedicated lanes or signal priority on most routes.

Project Connect is funded through a combination of local property tax revenue (an 8.75-cent increase per $100 of assessed property value approved by voters in 2020), federal grants (the project is competing for Federal Transit Administration New Starts and Capital Investment Grant funding), and Capital Metro operating revenue. The Austin Transit Partnership manages the capital program and the anti-displacement investments, which include $300 million dedicated to affordable housing along transit corridors. Note: an ongoing lawsuit challenges the legality of the property tax bond funding structure, which could affect the project timeline or scope.