The project covers just under five miles of Highway 41 between Avenue 10 and Avenue 15.
Plans call for widening the roadway from two lanes to a four-lane expressway and building a bridge over Avenue 11.
Local and state leaders gathered Friday morning for a groundbreaking ceremony to mark the start of construction.
"This is a gateway to Madera County, it's a gateway to our home. It's a gateway to some of the most fertile agricultural lands in California, in the world," said Supervisor Bobby Macaulay.
During the ceremony, officials repeatedly emphasized the collaboration behind the project, describing it as an example of long-term planning finally coming to fruition.
"This is what progress looks like and this is what partnerships looks like and this is what happens when a community comes together to invest in its future," said Supervisor Jordan Wamhoff.
Leaders also addressed the challenges involved in securing funding for the $130 million project, pointing to limited support from state legislators in Sacramento.
"The state, we hear often demands about what they want to see for new housing and affordable housing and yet they're not willing, that we've seen locally, to put mine toward the necessary infrastructure to make that happen," said Madera County Administrative Officer Matthew Treber.
Despite those challenges, Treber said local efforts ensured the project moved forward.
Funding includes a $26.95 million award from the federal government, with the remaining costs covered largely through development impact fees.
"We have a $26.95 million award coming from the federal government and the remainder so about $104 million is all development impact fees so paid for primarily Riverstone and Tesoro viejo and those new homes that have been built," Treber said.
Treber also noted that Caltrans District 6 is a key local partner and will be responsible for maintaining the expanded section of highway once construction is completed.
The Highway 41 expansion project is expected to be finished in 2028.
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