State College is getting another funding boost for an ongoing project to replace underground utilities and create a more pedestrian- and bike-friendly space in a downtown corridor.
The borough received $2.45 million for the Calder Way project through the Community Project Funding included in the 2026 federal spending bills passed by Congress in January. The funding was supported by U.S. Rep. Glenn Thompson, R-Howard, and U.S. John Fetterman, D-Pa.
The project is replacing aging utility infrastructure and will eventually construct “a curb-less, multi-modal corridor that prioritizes accessibility, safety and economic growth,” according to the project description.
“State College is a vibrant community that welcomes millions of visitors each year, and prioritizing safety and accessibility downtown will help bolster the borough,” Thompson said in a statement on Thursday. “I was pleased to secure this funding and work with Mayor [Ezra] Nanes on this project to continue to strengthen and grow our community.”
The Calder Way project’s second phase began in early February and involves utility replacements between South Fraser and South Atherton streets. Work in this phase includes replacement of sanitary sewer, stormwater, water main and gas main lines, and installing provisions for electric and telecommunications lines to be moved underground.
Phase 2A is planned to take place from March through July with utility replacements at the Hetzel Street intersection, according to the project website.
Similar work occurred during the project’s first phase in 2024 from McAllister Street to South Fraser Street. and utility replacements for the remaining segments between McAllister and South Garner streets are expected to take place in 2027.
The final piece of the project, with a date to be determined, will be streetscape improvements from Hiester Street to South Fraser Street. It is expected to create a shared corridor featuring enhanced pedestrian lighting, stamped pavement, a dedicated bike lane and a welcoming public space.
“The $2.4 million federal investment secured by Congressman Thompson will support critical transportation improvements along Calder Way,” State College Mayor Ezra Nanes said in a statement. “The project will transform a heavily used downtown corridor into a safer, more accessible, bike- and pedestrian-prioritized space, while continuing to accommodate essential functions such as deliveries, utilities and waste collection. We are grateful for the congressman’s advocacy for State College and his efforts to advance investments that strengthen the safety, functionality and vitality of downtown.”
Community Project Funding is based on submissions from representatives and senators at the request of constituent municipalities and organizations and included in federal appropriations bills after evaluation by House and Senate appropriations committees. Thompson said on Thursday that his office is accepting requests for fiscal year 2027 until the close of business on March 6.
It marks the latest financial support for the Calder Way project, which has received multiple state and federal grants and other funding sources. Most recently, the project was awarded $425,202 to enhance bicycle and pedestrian safety and $300,000 for stormwater system replacement Commonwealth Financing Authority’s Multimodal Transportation Fund and Small Water and Sewer Program in January.
The current, $3.2 million second phase of the project received a $2.75 million H2O PA grant for sewer, storm and water improvements, and the State College Borough Water Authority is contributing $228,954 for waterline replacement.
Among other grants, the largest came in 2024 when the borough received $15.9 million in federal money for the project through the Safe Streets and Roads for All funded by the 2021 Bipartisan Infrastructure Law.
The projected cost of all phases of the project is $38 million.
The first phase of the project was a headache for businesses in the work zone that said the blocked roadway and construction deterred customers. While the second phase covers a smaller area with fewer businesses, the Downtown State College Improvement District is looking to turn the challenges they do encounter into an opportunity.
The Calder Way Construction Crawl launched on Monday to provide activities for kids while encouraging support of local businesses during the construction. Children can get a free hard hat from the DSCID office or Growing Tree Toys then collect at least five stickers from designated businesses to receive a free activity book. Accompanying parents or guardians can also enter to win a $150 Downtown Gift Card in a monthly raffle through July, when the current phase of work is expected to conclude.
See more information about the Construction Crawl here.
