In 1919, California approved yet another large highway construction bond for $40 million. For Lassen County, the next highway project was from Susanville to the Nevada State Line—the forerunner of Highway 395. The Lassen Boulevard District was created to carry out the goal. The terminus location in Nevada at that time was known as Purdy (no relation) and is known today as Bordertown. Throughout the 1920s, the route was referred to as the Purdy Highway.
Of course, there were issues between Lassen County officials and the State Highway Department. In the fall of 1919, Lassen asked for an appropriation of $360,000–the amount needed for grading, draining and surfacing with gravel for the entire length of the road. The State, on the other hand, thought it would be better to do it 20 mile increments of grading and paving. The State was victor and the highway was built in segments.