A Strategic Partnerships, Inc. ad for winning government contracts.
An aerial shot of California transportation infrastructure and highways in Los Angeles.

California approves $1.1B in transportation funding

December 16, 2025

California Gov. Gavin Newsom announced $1.1 billion in transportation funding earlier this month, advancing the state’s “Build More, Faster – For All” initiative. The California Transportation Commission (CTC) approved the allocation, which targets new zero-emission buses and charging infrastructure alongside a range of road and bridge improvements statewide. 

The funding addresses deteriorating bridges, roadway maintenance, backlogs and traffic safety issues in communities across California, according to state officials. The California Department of Transportation (Caltrans) says the continued investment strengthens the agency’s ability to manage weather-related damage and growing traffic volumes on state roadways. 

Clean transportation represents a significant share of the allocation. The largest single investment directs $53 million toward a dozen new clean energy locomotives for Southern California’s Metrolink commuter rail system, phasing out older diesel-powered engines. Santa Maria will also receive $9.5 million to build a transit hub designed to anchor regional bus service using clean-energy vehicles. 

Road and bridge rehabilitation also claimed substantial funding. Storm-damaged sections of State Route 1 near Lucia are slated for roughly $57 million in repairs following landslide activity in recent years. A $15 million allocation will replace Modesto’s aging Seventh Street Bridge, and $13 million is directed toward restoring fire-damaged portions of State Route 38 in San Bernardino County, where the 2020 El Dorado fire caused significant infrastructure damage. 

Highway capacity projects are also advancing through this funding cycle. A $50.94 million investment will transform a stretch of State Route 41 in Fresno County from two lanes to four between Lemoore and Elkhorn Avenue. Los Angeles County secured $55.2 million to double lane capacity on State Routes 138 and 18 near Llano. 

Bay Area bridge infrastructure also received several notable investments. Marin County’s Lagunitas Creek Bridge on State Route 1 near Point Reyes Station is set for replacement through a $28.48 million allocation. Crews will use $11.89 million to clean and repaint structural elements of the San Francisco-Oakland Bay Bridge’s western span, and $10.8 million will address column and foundation repairs at the Appian Way Overcrossing along Interstate 80 in Pinole. 

The funding also supports pedestrian and cycling improvements. A $6.3 million allocation will fund construction of a pedestrian underpass at Los Angeles County’s Chatsworth Metrolink Station, while Orange Cove in Fresno County secured $839,000 for sidewalk upgrades and new bike lanes along South Avenue. 

Storm damage repairs rounded out the funding package. Humboldt County received approximately $18 million for slope stabilization and pavement work on Route 36 east of Swimmers Delight, where consecutive winter storms in 2024 and 2025 caused extensive damage. Mendocino County will use $16.5 million for roadway reconstruction and retaining wall installation along Route 1 near Rockport. 

The allocation draws from two primary funding streams. Roughly $463 million originated from Senate Bill 1, the Road Repair and Accountability Act passed in 2017, while $190 million came through the federal Infrastructure Investment and Jobs Act (IIJA) of 2021. 

SB 1 generates approximately $5 billion annually for transportation work statewide, with funding divided between state and local agencies.  

Under IIJA, the state is positioned to receive roughly $42 billion over the program’s five-year span. Total federal infrastructure investment in California has approached $62 billion since the law’s enactment, supporting an estimated 170,000 jobs, according to state officials. The funding targets improvements to roads, bridges, rail systems, public transit, airports, ports and electric vehicle charging networks. 


Photo by RDNE Stock project from Pexels

For more of the latest from the expansive government marketplace, check Government Market News daily for new stories, insights and profiles from public sector professionals. Check out our national contracting newsletter here.

Don't Miss

Massive support, funding now available to improve supply-chain networks

New opportunities for multimodal freight, rail, and port projects are

New hospitals greenlit for Amarillo, Wichita Falls

The Texas Health and Human Services Commission (HHSC) is searching