A california road.

California allocates $1.5B for statewide transit, infrastructure upgrades

July 14, 2025

California is investing big in transportation with a $1.5 billion funding round for numerous projects across the state. The investment is intended to reduce congestion, enhance travel safety and improve freight and rail system efficiency.

The projects, which have total costs exceeding $17 billion, are expected to create more than 227,000 jobs statewide.

This is the fourth round of funding stemming from Senate Bill 1, the Road Repair and Accountability Act, passed in 2017. The law creates a series of competitive grant programs for projects related to transportation infrastructure. The current funding round covers two fiscal years and represents, along with previous investments, almost $1.7 billion in total grants for three major initiatives.

The first is the Solutions for Congested Corridors Program (SCCP), a competitive funding program that funds a balanced mix of community access, environmental and transportation projects. Its goal is to reduce congestion throughout the state by providing additional, environmentally safe alternatives for travel such as new bike lanes or emission-free public transit.

The current round of funding will grant SCCP $483 million in funds for seven projects. These projects include efforts to expand transit lines, improve bicyclist and pedestrian safety, upgrade rail and bus lines and provide more high-frequency transit options.

Eligible applicants for SCCP grants include regional transportation planning agencies, county transport commissions and the California Department of Transportation (Caltrans). Eligible projects within this scope may include improvements to highways, local streets, rail or public transit facilities, pedestrian facilities or environmental preservation work.

The next major program included in the current round of funding is the Trade Corridor Enhancement Program (TCEP). The program targets infrastructure improvements along key trade routes and high-traffic freight areas. These include federal Trade Corridors of National and Regional Significance and California’s portion of the National Highway Freight Network.

The TCEP will receive $995.5 million in funds for 24 new projects, along with two that were previously funded. The projects cover two main areas—shifting freight obligation from trucks to rail and increasing zero-emission infrastructure to promote more environmentally friendly freight options.

These efforts include $94.2 million toward zero-emission infrastructure, including refueling and recharging facilities. It will also add 509 medium-to-heavy duty charging ports, increasing state capacity by 25%.

Eligible applicants can apply for funds by nominating projects, though projects must be identified in an already-adopted regional transportation plan to be considered.

The third and final major initiative receiving grant funding is the Local Partnership Competitive Program (LPP). The program funds local and regional transit improvements designed to enhance commuter safety and experience.

The program will receive $201.7 million for 11 different projects. These include building and upgrading transit stations, purchasing new zero-emission buses and improving interchanges and overcrossings. The efforts focus on improving commuter safety and offering a more welcoming travel environment.

Eligible applicants must be in jurisdictions where the public has voted to approve taxes, tolls or other fees directly related to transportation infrastructure projects.

The funding addresses immediate infrastructure needs while supporting long-term environmental sustainability goals. Project implementation will begin in fiscal years 2025-26 and 2026-27, with the commission planning to announce the next competitive funding cycle in 2026.


Photo by Matt Hardy from Pexels

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