The Idaho Transportation Board approved Grant Anticipation Revenue Vehicle (GARVEE) bonds at its August board meeting.
The bonds will be used for US-95, from Garwood Road to Sagle, in northern Idaho.
The project will complete improvements to US-95 including $41 million for a new interchange at Idaho Highway 53. Additional work includes removing two at-grade signals and frontage roads to Garwood Road.
The remaining funds will be used to widen US-95 to four lanes to the top of Granite Hill, create a grade separation and add frontage roads.
Construction could begin in 2019.
The first stage of the project was completed in 2015 and included widening the highway from Garwood Road to Sandpoint.
In other business, the board passed a motion to instruct the Idaho Transportation Department to begin an environmental study on the expansion of Interstate 84.
The board had approved $150 million in GARVEE bonds in April for the interstate. The bonds would cover the widening of I-84 from Franklin Boulevard to the Karcher Road Interchange.
The environmental study will cost $1 million.
The Idaho Legislature approved $300 million in GARVEE bonds. The transportation board has committed the use of $215 million.
GARVEE bonds allow states to borrow against future federal highway funding.