Rather than widen the existing road further, the Maryland State Roads Commission decided to build a new Philadelphia Road, later known as Pulaski Highway, as a divided highway on a new alignment between Baltimore and Aberdeen and to expand the newly relocated highway through Aberdeen to Havre de Grace to a four-lane divided highway. The new US 40 was started in 1935 and completed in 1938. The original Philadelphia Road between Baltimore and Aberdeen became the first section of MD 7. The next sections of the old highway to be bypassed were in Havre de Grace and Perryville when the Thomas J. Hatem Memorial Bridge and its approaches opened in August 1940, replacing the double-decked converted railroad bridge. The portions of the old highway on either side of the river became additional sections of MD 7. Construction on the new Philadelphia Road in Cecil County began in 1938 and was completed in 1941. Transfer of US 40 to its new alignment resulted in the addition of two more sections of MD 7 from west of Charlestown through North East to west of Elkton and through Elkton.