The Hawaii Army National Guard is upgrading its facilities and will shift some operations to Kalaeloa from Diamond Head thanks to $35 million in federal funds.

The money is being used to build a new maintenance shop in Kalaeloa and to upgrade two buildings built in the 1940s and 1950s, Gov. Neil Abercrombie announced today.

The new Combined Support Maintenance Shop will allow the Army National Guard to shift maintenance operations from Diamond Head to Kalaeloa and reduce traffic congestion around Diamond Head.

Construction is already underway, Abercrombie said, after the state’s release of $1.65 million in January for the project. The project is expected to be completed in the fall of 2013.