Los Lunas approves $14 million loan for I-25 corridor project

A $14 million loan approved by the Los Lunas Village Council will keep the long-planned I-25 corridor moving, but the payoff for commuters, freight traffic and anyone trying to reach or leave the village will still be measured in years, not months. The council voted 3-0 after a public hearing to authorize the financing package, which is aimed at closing out phase one costs and helping cover early phase two expenses. Village officials say phase one is not scheduled for completion until summer 2029.

The loan comes with a 1.5% interest rate and a 15-year repayment term. Bond counsel Daniel Hoberman told the council the annual payment would be about $1,049,220.98, and said the debt is secured only by the state share gross receipts tax and the municipal gross receipts tax. That structure keeps repayment tied to existing local revenue streams rather than broader village assets.

The project is meant to take pressure off NM 6, also known as Main Street, where the village says about 40% of traffic does not stop in Los Lunas at all. The corridor is designed to improve traffic flow, give the village better access to I-25, support high-growth areas on the west side and beyond, and make emergency response more efficient. For drivers stuck behind through traffic, the biggest change would be a direct east-west route that reduces bottlenecks on Main Street and gives freight traffic a faster connection between Highway 47 and the interstate.

The full corridor will run from I-25 to Highway 47 and include a full interchange at Morris Road, a Rio Grande bridge, and intersections at Sichler Road, Highway 314, Edeal Road and Highway 47. Phase one includes one lane in each direction plus a multi-use pedestrian and bicycle path. Phase two would add another lane in each direction, which means the current financing keeps the project advancing but does not finish the full buildout.

The approval also adds to a funding stack that has been building for years. The project has already received $25 million in U.S. Department of Transportation INFRA money, $45 million in 2023 House Bill 2 funds, $10 million in another House Bill 2 appropriation, $2 million from a Valencia County bond election in 2018 and $2.5 million authorized by Village Council Resolution #18-15. A 2024 state bill also proposed an $85 million general-fund appropriation for the corridor.

The work has been advancing since the concept was first developed in 2001. Environmental review and permitting were completed July 11, 2024, and the village said in May 2025 that groundbreaking was expected in August 2025 after awarding phase one to El Terrero Construction and selecting Molzen Corbin Engineering for construction-phase services. In April 2026, project leaders said the work was about 25% complete and remained on schedule, with the bridge expected to become the longest in New Mexico at about 3,000 feet.

For Los Lunas, the measure of success will be simple: fewer cars cut through Main Street, shorter trips to I-25, faster movement for local businesses and trucks, and a corridor that opens before the village’s growth outruns its roads.