As California transportation agencies race to line up projects for delivery in early 2026, regulators have approved a $1.1 billion funding package that pushes new money into zero-emission transit fleets, rail infrastructure and long-delayed repair work with just weeks left in the year.
The action comes as state and regional agencies finalize year-end capital plans and position projects for procurement and construction, giving contractors and designers clearer visibility into where transit, rail and related infrastructure work is likely to move forward.
Because much of the funding is distributed through formula-based programs, approved dollars are expected to move more quickly to vehicle orders, facility upgrades and construction activity rather than a protracted discretionary review.
The California Transportation Commission approved the funding at its Dec. 4-5 meeting, allocating money to several programs that support transit fleet modernization, freight infrastructure, rail equipment and road repair.
The package draws on both state and federal funding sources and is largely structured under state Senate Bill 125, the 2023 law that provides capital and operational support to transit agencies still working to stabilize service after pandemic-era ridership losses.
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Gov. Gavin Newsom framed the funding as part of the state’s broader infrastructure and climate strategy.
“Donald Trump is asleep at the wheel of America’s infrastructure,” Newsom said in a statement announcing the approvals. “Meanwhile, California is moving forward. We’re investing in zero-emission transit, safer roads and resilient infrastructure. That’s what Build More, Faster is all about: good-paying jobs and investments in our communities while meeting our world-leading climate goals.”
Projects move from politics to procurement
Among the most prominent allocations in documents reviewed by ENR is $53 million to buy 12 clean-energy locomotives for Southern California’s Metrolink rail system, replacing older diesel units.
Although the rolling stock will be purchased separately, the investment is expected to generate additional work related to rail yard modifications, power systems and maintenance facilities as the new equipment is integrated into service.
Elsewhere, roughly $57 million was approved to repair a landslide-damaged section of State Route 1 near Lucia, work that will require slope stabilization, road reconstruction and drainage improvements along one of the state’s most environmentally sensitive corridors.
In Santa Maria, $9.5 million will fund the construction of a new multimodal mobility center that will support regional clean energy bus operations, including charging infrastructure, utility upgrades and passenger facilities.
California Transportation Secretary Toks Omishakin said the combination of projects reflects an effort to combine decarbonization with system reliability.
“Today’s investments show what it looks like when California chooses to lead with both urgency and intent,” Omishakin said. “By expanding zero-emissions options and strengthening infrastructure in every corner of the state, we’re fulfilling Governor Newsom’s vision to build a modern and sustainable transportation system for everyone.”
Beyond the marquee projects, the funding package includes dozens of smaller but construction-intensive awards that move through regional transportation planning agencies.
SB$125 is being allocated to electric bus charging depots, hydrogen facilities, traffic maintenance yard improvements, microgrids, station improvements and right-of-way work needed to modernize aging assets.
Several regions are also using funds to replace diesel buses with electric or fuel cell vehicles, prompting ancillary civil, electrical and utility work.
Caltrans Director Dina El-Tawansy said the investments are meant to address growing pressures on transportation infrastructure across the state.
“The significant investments made today and throughout the year support Caltrans’ continued response to the effects of weather conditions on key assets, increased demand on the transportation system and our continued efforts to improve mobility for all riders,” he said.
The approvals come as Caltrans told commissioners this month that about a third of the state’s $11.3 billion allocation capacity for fiscal 2025-2026 has already been committed, reflecting both the pace of project delivery and competition for remaining funds.
Commission materials reviewed at the December meeting show hundreds of projects across the state moving through allocation, time extension and right-of-way phases, pointing to a broad portfolio of active and near-term design and construction work.
California Transportation Commission Chairman Darnell Grisby said the funding is intended to support affordability and competitiveness while advancing environmental goals.
“We are pleased to partner with Caltrans to improve our state’s economic competitiveness and make commuting more affordable, while protecting our environment,” he said.
The $1.1 billion package indicates sustained near-term opportunities related to transit fleet electrification, charging and power infrastructure, rail equipment integration, right-of-way work and construction in good repair, even as agencies balance climate mandates with ongoing fiscal constraints.
