The Australian Government is committing $100 million to help rebuild and future-proof the Great Western Highway at Victoria Pass in New South Wales as well as deliver additional lanes along the corridor.
This investment matches the Minns Labor Government's $100 million funding allocation in the 2026-27 State Budget, bringing the total budget for the project to $200 million.
"For 194 years, the Mitchell's Causeway was the key link between the Mountains and the Central West. The cracking has cut off communities, and made travelling through the region challenging.
"The Australian Government made an early commitment that we would work closely with the NSW Government to reopen the highway as quickly and safely as possible.
"This will not be a simple repair, but getting this done is a priority. That's why the Albanese Government is announcing $100 million in Federal Funding today," Federal Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said.
"This investment from the Albanese Government to build a third lane on the new road structure will be incredibly welcome news from the Blue Mountains community. Locals and freight operators know better than anyone the difference this additional capacity will make once it is delivered.
"It's fantastic to see both levels of government working together to rebuild this critical route, while also ensuring it is safer, more resilient and better equipped to serve the community for years to come," State Member for Blue Mountains Trish Doyle MP said.
Since March 2026, Mitchell's Causeway and Victoria Pass have remained closed to traffic due to serious cracking and movement. Transport for NSW acted swiftly to diagnose the problem and design a permanent and safe engineering solution for it.
The State Government engaged Seymour Whyte in June to build a new road deck above the existing Causeway supported by piles anchored to the bedrock below.
Federal Government funding will also enable the delivery of an additional eastbound climbing lane to permanently widen the critical link between the Blue Mountains and Central West.
Towards the end of the restoration of Mitchell's Causeway, work will commence on adding the new eastbound climbing lane to provide safe overtaking opportunities when bypassing slow-moving vehicles and trucks.
Major works to rebuild Mitchell's Causeway are already underway, with the Great Western Highway expected to reopen to traffic in the second quarter of 2027.
"The Minns Labor Government is working at significant pace to reopen Mitchell's Causeway for the Central West and Blue Mountains communities.
"By delivering an additional eastbound climbing lane, we are taking the opportunity to improve the road for the long term, giving motorists to safely overtake slower-moving vehicles and trucks.
"We are looking beyond the immediate repair and investing in our Central West and Blue Mountains communities for the future.
"This investment will address a long-standing pain point for locals and truckies, while ensuring we can get this vital road safely reopened as soon as possible.
"The Albanese Government's $100 million contribution means we can go beyond simply rebuilding Victoria Pass. This investment will mean we can future-proof it.
"I am very pleased to be working with our Federal counterparts to make that happen," NSW Minister for Roads Jenny Aitchison said.
"These works are not a short-term solution, we're constructing a better, more resilient highway built to last.
"Once complete, the project will deliver lasting benefits for freight operations, emergency services, local communities and the broader economy across the Blue Mountains and Central West region.
"To the local communities and businesses, these past few months have been challenging. Thank you for your ongoing patience as we have worked to identify a solution to reopen this road," Member for Macquarie Susan Templemen MP said.
Source: Minister for Infrastructure, Transport, Regional Development and Local Government; NSW Government - Media Releases; Transport for NSW
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