For decades, the elevated stretch of Interstate 81 carved a concrete scar through the heart of Syracuse, displacing more than 1,300 families when it was built in the 1960s and dividing neighborhoods that have yet to fully recover. Now, halfway through a $2.25 billion demolition and reconstruction project, the city is entering the phase residents will actually feel.
Phase Two of the I-81 Viaduct Project shifts construction from the elevated highway down to the streets. This year, NYSDOT will rebuild the corridor from Leavenworth to Crouse Avenues, construct new interchange connections to West Street and the future Business Loop 81, and begin a full underground overhaul — replacing aging water and sewer lines beneath Erie Boulevard and Salina Street.
A new connection between I-81 and Interstate 481 is already open to traffic at 65 mph. A new on-ramp from North Crouse Avenue to I-690 eastbound went live earlier this year, the first of several Community Grid access points that will eventually replace the elevated highway entirely. An off-ramp to East Colvin Street is under development, targeted for completion by year-end, serving South Campus and the athletics corridor.
By late 2026, part of the elevated highway through downtown will be permanently closed. The southern stretch of the viaduct comes down starting at the end of this year, with the rest following in 2027 and 2028. The Community Grid — a surface-level street network designed to reconnect neighborhoods severed by the highway — is targeting completion in 2028.
The numbers tell the story of what changes. Over 110,000 cars currently barrel through the Southside neighborhood on I-81 every day. With through-traffic rerouted via I-481 and the new grid in place, that number is expected to drop to roughly 31,000 — a 72% reduction in daily traffic through a historically Black residential area.
But the project carries real risks. The viaduct’s paint contains lead concentrations ten times what is typically found in residential structures, and the Southside community has pressed NYSDOT hard on demolition safety protocols. The state says it has developed a comprehensive health and safety plan in collaboration with community partners and local agencies.
There is also the matter of money. NYSDOT secured a $180 million federal Reconnecting Communities grant in 2023, but the current federal budget proposal would cancel more than $3 billion in unobligated DOT neighborhood funding nationwide. State officials have not said how potential cuts could affect the remaining phases.
Salt City Constructors — a collaboration of Lancaster Development, Tully Construction, D.A. Collins Construction, and Cold Spring Construction — is managing two major north-side contracts worth a combined $515 million. Syracuse Common Councilor Jimmy Monto called it “a once-in-a-lifetime infrastructure project” that “may be painful in spots, but in the end will be great for all of us.”
For now, Syracuse drivers should prepare for the most visible disruptions yet as construction moves from above the city to below its streets.
