The second phase, covering of SR 539 between Ten Mile Road and Badger Road (SR 546) in Lynden at a cost of $89.2 million, was included in the 2003 Nickel Funding Package passed by the state legislature. It was originally scheduled to be completed in 2013, but a supplemental legislative package approved in 2004 advanced $60.4 million in funding for the project so it would be completed in time for the 2010 Winter Olympics to be held in nearby Vancouver. While several alternative options were considered for the SR 539 corridor, including carpool lanes and improving parallel roads, WSDOT chose to largely re-use the four-lane roadway configuration with turn lanes already planned for the first phase. The section would, however, include five roundabouts at existing intersections to improve safety and prevent long backups at signals near Lynden.