Over $250 million in grants awarded to modernize California transportation infrastructure

January 21, 2025

The U.S. Department of Transportation (DOT) is unveiling a flurry of grants to support transportation infrastructure projects across California communities. 

The DOT will invest a combined $258 million in grants to upgrade the state’s transportation infrastructure and improve safety, economic growth opportunities and access to essential services.  

The transportation grants come from three federal grant programs designed for improving transportation’s efficiency, safety and operations – the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Grant Program, the Reconnecting Communities Pilot (RCP) Grant Program and the Rural Surface Transportation Grant (Rural) Program. 

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The federal support will be distributed to a variety of projects throughout the state and address transportation barriers in communities in need of reconnection, enhance multimodal access for residents and improve connectivity and transportation systems’ efficiency. The grants will also support projects that fix aging roadways, expedite rail projects and assist rural communities. 

The DOT’s first funding initiative, the RAISE program, advances federal efforts to enhance the transportation sector’s safety, environmental sustainability, mobility, economic competitiveness and innovation. In this fiscal year (FY) 2025 round, RAISE will fund ten California projects that seek to reinvigorate transportation infrastructure around the state.  

RAISE’s largest grant in California, $25 million, will support the San Francisco Bay Area Rapid Transit (BART) Project, a substantial rail initiative that looks to expand transit options for residents in the Bay Area. San Francisco’s new BART system will highlight other statewide initiatives to connect all Californians to a fully zero-emissions, interconnected rail network by 2050. 

After BART, the highest funded RAISE grants are listed below: 

  • City of Palmdale – $23 million to construct a railroad grade separation, also known as an overpass, at both Sierra Highway and the at-grade crossing of Metrolink and UPRR tracks. 
  • Santa Cruz County Regional Transportation Commission – $19.5 million to construct approximately 32 miles of universally accessible multi-use trail along the unused Santa Cruz Branch Rail Line. 
  • City of Hanford – $15.5 million to conduct engineering design, public outreach and construction activities for a corridor improvement project in Downtown Hanford. 
  • California Department of Transportation – $14.9 million to reconstruct the existing US 101 and Sunset Avenue interchange with two roundabouts. 
  • Sacramento Regional Transit District – $9.6 million to develop a new interconnected Dos Rios Light Rail Station along North 12th Street between Richards Boulevard and Sunbeam Street. 

The DOT will deliver approximately $60 million in grants to 13 California infrastructure projects through the RCP program, a federal funding initiative that seeks to reconnect communities and improve residents’ access to jobs, education, healthcare, food, nature and recreation. Overall, the program’s goal is to restore the connectivity of communities that were fragmented by major infrastructure initiatives of the past, ensuring access to vital needs in historically disadvantaged communities. 

The highest funded projects in this round of FY 2025 grants include: 

  • Housing Authority of the City of Los Angeles – $26.6 million to three projects that address inequitable pedestrian infrastructure and safety in Watts. 
  • City of Goleta – $11.1 million to build a separated and dedicated multipurpose underpass through US 101, the Union Pacific Railroad Tracks and State Road 217 to eliminate a barrier for communities. 
  • City of Richmond – $9.5 million to fund a complete streets improvement project that mitigates barriers to mobility and connectivity in Richmond’s historically disadvantaged communities. 

The DOT’s final funding initiative, the Rural program, will award nearly $77 million in grants to support two road improvement projects in California’s rural communities. The program, which specifically targets the nation’s rural communities, operates as an extension of the urban-oriented Surface Transportation Grant Program, funded by the Bipartisan Infrastructure Law. 

For the larger of California’s two projects, DOT will deliver a $41.3 million grant to the City of Tracy for a multipronged roadway improvement project. Through three elements, the project will conduct improvements to the I-580 and Corral Hollow Road interchange, widen the existing two-lane Corral Hollow Road to a divided four-lane roadway and enhance infrastructure at the Corral Hollow Road and Linne Road intersection, including upgrades to traffic signals, turn lanes and an at-grade crossing. 

The Rural program will also support the Plumas Lake Boulevard expansion and rail connectivity project in Yuba County. The initiative seeks to extend Plumas Lake Boulevard eastward by constructing two bridges over two railroads, connecting Plumas to Arboga Road. In addition to eliminating an at-grade crossing, the project will serve as a proposed location for the new North Valley Rail Stop. 

“Far too many communities across California have been cut off by old highway construction projects or are struggling with aging transportation infrastructure in their own neighborhoods,” Senator Padilla said. “These major transportation investments through the Bipartisan Infrastructure Law will reduce historical barriers to economic and educational opportunities and create a safer, cleaner commute for millions of Californians.” 


Photo courtesy Myriam Thyes, CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0, via Wikimedia Commons

Brady Pieper

written for various daily and weekly publications in Texas and Colorado, specializing in the government market and in-depth bill coverage. Graduating from the University of Texas at Austin with a degree in Journalism, Pieper has been at the forefront of public and private sector communications and government initiatives. Pieper recently joined the Government Market News team as a content writer and anticipates continuing SPI’s long-standing tradition of delivering timely, accurate and significant government news to our readers and partners.

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