Planning for a replacement began in 1997 and was approved in 2011; the $4.65 billion budget was derived from state gas taxes and federal sources, as well as toll revenue.

[7] Even if the storms were below the maximum threshold for failure to occur, Washington State Department of Transportation (WSDOT) would still close the floating bridge to traffic.

[12] Alternative options included the construction of a southbound onramp from the I-5 express lanes, the addition of light rail to the project, and an eight-lane bridge.

[17] The first stage of the SR 520 floating bridge replacement project was the construction of 77 concrete pontoons in 2011 and 2012 by Kiewit-General-Manson at two purpose-built facilities in Aberdeen and Tacoma.

[23] A state investigative report by concrete expert John Reilly blamed the WSDOT Bridge and Structures Office (BSO) for the error.

The states top bridge engineer, Jugesh Kapur was ultimately let go over the error and another Department of Transportation employee was demoted.

[25] The repairs were made by the contractor at the direction of WSDOT from December 2013 to June 2014 and cost a total of approximately $208 million,[26] using up the majority of the program's reserve funds.

[29][30] In March 2015, two construction accidents on the bridge slowed construction for reevaluation of safety measures: a contractor was killed after a high fall on the east highrise; and a crane-lifted load of steel pipes swung out of control into a King County Metro bus and an overhead highway sign.

[33] The new bridge was dedicated on April 2, 2016, in a ceremony presided over by Governor of Washington Jay Inslee and attended by an estimated 40,000 to 50,000 people.

[45] An unaffiliated contest was held in 2012 seeking ideas for the 33 pontoons of the old bridge, with solutions ranging from a "floating High Line" to partial submersion for walking paths.

[48] Construction of the 1.2-mile (1.9 km) western approach to the floating bridge, a conventional viaduct that crosses Union Bay, was split into three projects.

[49] The north side of the new western approach, which would ultimately carry westbound traffic and the multi-use trail, began construction in October 2014.

[52][53] The new approach bridge opened for westbound traffic in August 2017, with later revisions to extend the HOV lane towards the Montlake interchange.

[58][59] A temporary onramp from Lake Washington Boulevard was opened a month later to replace the last of the unused Thomson Expressway ramps.

[60] Two mobile gantry cranes were used to disassemble and lift pieces of the old approach bridge beginning in 2020 after a construction delay due to the COVID-19 pandemic.

[62][63] The remainder of the SR 520 megaproject, which includes replacement of the Portage Bay bridge and Montlake Boulevard interchange, is scheduled to be completed in 2031.

[66] All the pontoons are designed with watertight compartments that are monitored remotely with sensors to detect leaks that could lead to catastrophic failure.

[65][67] Unlike the older bridge, maintenance vehicles can now access the pontoons from beneath the upper roadway deck without interrupting traffic.

[70] Ornamental elements include four sentinel towers rising 43 feet (13 m) above the bridge deck at the approaches, and belvederes on the north side.

A 2008 WSDOT report included five core bus rapid transit routes proposed by Sound Transit connecting the Eastside (Kirkland, Redmond, and Bellevue) to Downtown Seattle and the University District, with a base frequency of 15 minutes, increasing up to 7 minutes at peak times.

[73] Existing freeway bus stations (also known as "flyer stops") on the Eastside at Evergreen Point and Yarrow Point were rebuilt and moved from the freeway's shoulder to the median, accompanied by landscaped lids with parking and lawns, in 2014 for increased compatibility with the bridge's planned HOV lanes.

Since August 2024, the rate for standard two axle passenger vehicles ranges from a minimum of $1.35 from 11 p.m. to 5 a.m. to a maximum of $4.90 during peak commuting hours on weekdays; an additional $2 is charged for mail users.