$2.5 Billion Tunnel Proposed to Save Eroding Highway 101, Faces Environmental Challenges
June 18, 2026
Caltrans envisions a long-term fix: a $2.5 billion underground tunnel through the redwood forest to bypass unstable cliffs, with the final environmental impact report completed in late spring and the project moving into design funding phases.
A critical three-mile segment of Highway 101 at Last Chance Grade in Del Norte County is eroding into the Pacific, threatening the main coastal link between Crescent City and inland communities.
Local sentiment ranges from cautious acceptance after years of inaction to frustration over the lengthy timeline and ongoing environmental review.
An alternative to the tunnel is a 449-mile detour via Redding and Southern Oregon, underscoring the community’s dependence on Highway 101 for access to schools, healthcare, and essential services.
If approved, about 225 million dollars would fund the design phase, with construction targeted to begin around 2031 and opening anticipated by 2038, as planners continue coordination with Indigenous tribes, agencies, businesses, and environmental groups.
The proposed 6,000-foot tunnel would become California’s longest highway tunnel, running east of the current road through Redwood National and State Parks, a UNESCO site, and the environmental report notes the loss of several old-growth redwood trees and other forest impacts.
Summary based on 1 source
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Los Angeles Times • Jun 18, 2026
A vital California highway is sliding into the sea. A $2.5B tunnel would go around it - Los Angeles Times