Near Danbury, another expressway section was built beginning south of Interstate 84 near the Danbury Airport. This section is also signed as "The Forty Third Infantry Division Memorial Highway". Through Danbury proper, Route 7 overlaps with I-84 for about . Through this section of expressway, Routes I-84, U.S. 7, U.S 6 and U.S. 202 are co-signed. U.S. 7 and 202 then leave I-84 and travel on their own expressway for approximately to just south of the New Milford, Connecticut Line. On this section there is just one exit, Exit 11 -- Federal Road and where U.S. 202 exits the expressway. The expressway's terminus Exit 12 is for U.S. 202.
On December 20, 2006, the Connecticut Department of Transportation awarded an $87 million contract to O & G Industries for construction of the Brookfield Bypass, which will extend the existing U.S. 7 expressway 3 miles (5 km) from its present terminus to the New Milford town line, bypassing Brookfield to the west. The expressway extension is expected to be completed in 2009. The old 2-lane route through Brookfield will then be signed solely as Route 202. Route 7 is cosigned with U.S. 202 until central New Milford, where Route 202 turns east with Route 67 while Route 7 continues north. Recent construction has also made large parts of Route 7 between the terminus of the expressway and New Milford a 4-lane arterial highway with at-grade intersections. North of New Milford center, Route 7 remains a 2-lane road through the rest of Connecticut.
Like Connecticut, Massachusetts planned a US 7 expressway from the existing bypass in Lenox all the way to Lanesborough. This plan was never initiated, although land takings occurred. The highway was ultimately canceled due to environmental and community opposition.
The road remains a rural 2-lane highway from the Massachusetts line to Bennington, Vermont, where a freeway is being built to the north and east of Bennington. Once complete, U.S. 7 will utilize this new bypass while the existing 2-lane road into town will become part of Vermont Route 7A. North of town, the highway then again returns to expressway status. For it is a true expressway with divided carriageways and multiple lanes. Route 7 then narrows down to an undivided two-lane freeway. There are, however, many stretches with passing lanes. Just north of Manchester, Vermont the expressway ends. From Manchester to Wallingford, Vermont, the road is a two lane rural. North of Wallingford, US 7 becomes a four lane divided highway with at-grade intersections, up until its southern junction with US 4 south of the city of Rutland. From Rutland north, the road is either two-lane or 4-lane undivided, uncontrolled road all the way to the Canadian border (except between Shelburne and Burlington, known as Shelburne Road, which is a 4 lane divided highway). US 7 and US 2 are concurrent from Burlington to Colchester. It is known as the Ethan Allen Highway for much of the path through Vermont.
In Vermont it passes through the towns of Pownal, Bennington, Shaftsbury, Glastenbury, Arlington, Sunderland, Manchester, Dorset, Danby, Mt. Tabor, Wallingford, Clarendon, Rutland, the city of Rutland, the towns of Pittsford, Brandon, Leicester, Salisbury, Middlebury, New Haven, Waltham, Ferrisburg, Charlotte, Shelburne, the cities of South Burlington, Burlington, and Winooski, the towns of Colchester, Milton, Georgia, St. Albans, the city of St. Albans, and the towns of Swanton and Highgate before ending at a dead end (since the customs is on I-89 and there was no need for 2 customs offices at one location).
Prior to the U.S. Highway system, the alignment of US 7 from Great Barrington, Massachusetts to the Canadian border north of Highgate Springs, Vermont was part of New England Interstate Route 4 (NE-4). When first commissioned in 1927, US 7 ran along the entire length of NE-4, continuing south from Great Barrington along current Route 41. Route 41 continues into Connecticut up to the town of Sharon. NE-4 then went west along Route 343 to the New York state line, where the road continues along New York State Route 343 to Amenia. US 7 originally extended further south of Amenia all the way to New York City along New York State Route 22 but was never signed within the city. By 1929, the southern terminus had been shifted to Norwalk, Connecticut. The previous designations of the new alignment south of Great Barrington were: New England Route 17 to North Canaan, State Highway 134 to New Milford, State Highway 128 to Danbury, New England Route 3 to Ridgefield, and State Highway 126 to Norwalk.