The Mobile River Bridge secured a historic $2.52 billion federal loan Friday, clearing a major remaining hurdle for construction of what federal and state officials describe as the largest infrastructure project in Alabama history.

U.S. Transportation Secretary Sean Duffy announced that the Alabama Toll Road, Bridge and Tunnel Authority will receive up to $2.52 billion through the federal Transportation Infrastructure Finance and Innovation Act program. The Alabama Department of Transportation will construct and manage the project.

The financing clears the way for the first phase of the long-planned Interstate 10 project connecting Mobile and Baldwin counties.

Phase One will include construction of a new six-lane cable-stayed bridge over the Mobile River, improvements to major interchanges and traffic flow on both sides of Mobile Bay, reconstruction of approximately one mile of the existing Bayway and restriping of the full 7.5-mile Bayway from two lanes to three lanes in each direction.

The first phase is estimated to cost roughly $3.2 billion, with construction positioned to begin before the end of 2026.

“This advancement marks the final piece needed for the decades-awaited Mobile River Bridge and Bayway project,” Governor Kay Ivey said. “Once it is completed, this project will finally alleviate our traffic gridlock across Mobile Bay.”

This advancement marks the final piece needed for the decades-awaited Mobile River Bridge and Bayway project. Thank you, again, to the Trump Administration for investing in our state. Alabama is proud to be part of the Golden Age of Transportation. #alpolitics https://t.co/pomk5BUoHC

— Governor Kay Ivey (@GovernorKayIvey) September 18, 2026

The project is designed to address severe congestion around the George Wallace Tunnel, one of Alabama’s most persistent interstate bottlenecks.

Hazardous-material trucks are prohibited from using the tunnel, forcing hundreds of trucks each day onto alternate routes through Mobile. The new bridge will provide those vehicles a direct interstate crossing while expanding freight access to the Port of Mobile. The U.S. Department of Transportation says the improvements could cut travel times by as much as 30 minutes while also strengthening hurricane evacuation capacity.

“For decades, families, commuters, and local businesses have waited for this bridge, and today we have cleared the final hurdle to make it a reality,” U.S. Senator Katie Britt (R-Montgomery) said.

She called the I-10 corridor “a lifeline for our state,” connecting the Port of Mobile, shipbuilders, military assets, workers and businesses across Alabama’s Gulf Coast.

I’ve fought for this project since my first days in the Senate, because this corridor is a lifeline for our state, connecting the Port of Mobile, our shipbuilders, our military assets, hardworking Alabamians, and Americans who travel to our great state.

I’m grateful to @POTUS,… https://t.co/oMbkSdE4K0

— Senator Katie Boyd Britt (@SenKatieBritt) September 18, 2026

U.S. Senator Tommy Tuberville (R-Auburn) called the project “a game-changer for the Gulf.”

“This long-overdue bridge expansion will relieve traffic, enhance safety, and expand freight access to the Port,” Tuberville said.

I am incredibly thankful @POTUS and @SecDuffy are taking action to bring the Mobile Bridge and Bayway project to life.

This expansion is LONG OVERDUE and will be a true game changer for Alabama and everyone along the Gulf. https://t.co/ig99lVl4lj

— Coach Tommy Tuberville (@SenTuberville) September 18, 2026

U.S. Rep. Barry Moore (R-Enterprise), whose 1st Congressional District includes Mobile and Baldwin counties, also called Friday’s announcement a milestone.

“From day one of representing Alabama’s First District, this project has been a top priority for me,” Moore said. “This investment will improve travel across our region and strengthen the Gulf Coast for generations to come.”

President Trump said he would deliver for Alabama and he is making good on that promise!

Thanks to @POTUS and @SecDuffy, this is a generational investment for South Alabama, the Port, and our economy. https://t.co/uebOpRzwB5

— Rep. Barry Moore (@RepBarryMoore) September 18, 2026

Rather than immediately replacing the entire Bayway, ALDOT’s revised approach will add capacity to the existing structure during Phase One. Construction of a completely new Bayway is planned for Phase Two as additional funding becomes available, with future toll revenue expected to help finance the work.

The $2.52 billion loan builds on a $550 million federal Bridge Investment Program grant previously awarded for the same corridor.

Current plans call for tolls to begin only after the new Mobile River Bridge opens, which is projected around 2031. Existing routes including the Wallace Tunnel, Bankhead Tunnel, Causeway and Africatown Bridge would remain toll-free.

“After decades of delay, this historic investment into Alabama” will ease congestion, improve freight movement and enhance safety, Duffy said.

Sawyer Knowles is a state and political reporter for Yellowhammer News. You may contact him at [email protected].