The project to improve the road from a Nogales port of entry to Interstate 19 cleared another hurdle.
The Federal Highway Administration issued a finding of no significant impact for proposed improvements to Arizona 189, according to a news release from the Arizona Department of Transportation.
With the greenlight from the federal agency, ADOT can start design and construction.
The 3.75-mile road connects the Mariposa Port of Entry, which sees 80 percent of the goods that enter Arizona from Mexico, to I-19.
The proposed improvements include a flyover ramp connecting the northbound lanes of Arizona 189 and I-19, intersection improvements, and road widening.
Construction is expected to start in fiscal year 2019.
The Legislature and Gov. Doug Ducey approved $25 million for the project, which will allow work to start two years earlier than originally planned, according to ADOT.
The federal government allotted $40 million for the project.