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USDOT awards KDOT nearly $98 million to improve I-35, Santa Fe corridor in Olathe

Construction scheduled to begin in late 2026
Major project along Santa Fe and I-35 in Olathe expected to improve traffic flow and safety
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KANSAS CITY, Mo. — Nearly $98 million was awarded to the Kansas Department of Transportation by the U.S. Department of Transportation to address the Interstate 35 and Santa Fe Street corridor in Olathe.

In an announcement Tuesday, Kansas Gov. Laura Kelly called the Infrastructure for Rebuilding America grant award a “win for Kansas and everyone who travels I-35 through Olathe.”

The project looks to eliminate bottlenecks at the Santa Fe Street and Old Highway 56 interchanges.

Kelly’s office reports the crash rate on I-35 surrounding the Santa Fe interchange is more than 2.5 times the state average.

In tackling “one of the region’s most congested corridors,” Kelly said the funds will address access issues on Santa Fe, replace aging infrastructure and provide multimodal access across I-35.

The city of Olathe teamed up with KDOT to apply for the IRFA grant.

“The new I-35 and Santa Fe interchange wouldn’t be possible without the partnership of KDOT and the leadership shown by our congressional delegation, including Sen. Jerry Moran, Sen. Roger Marshall and Rep. Sharice Davids,” Olathe Mayor John Bacon said in a news release. “We are grateful for the support of our partners and for their understanding of just how important this project is to Olathe and to the region.”

While specific plans have not yet been announced, businesses along the corridor told KSHB 41’s Daniela Leon over the summer they are looking forward to the change despite likely having to relocate.

“There’s a lot of accidents. We always see [police] lights going off because of the car accidents,” said Mensur Mario Maloku, owner and chef at Toni's Italian Restaurant.

Maloku noted moving will be "very expensive," so his restaurant will seek "to be compensated for our troubles."

Construction is scheduled to begin in late 2026, starting with the I-35 and Santa Fe corridor between Ridgeview and Mu-Len roads.

The project is expected to cost nearly $278 million.

In addition to the $98 million IRFA grant, the city of Olathe will contribute $40 million and KDOT will contribute $140 million through the Eisenhower Legacy Transportation Program, according to Kelly’s office.