California: Governor Newsom announces nearly $900 million for cutting-edge transportation systems of the future

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Mar 25, 2026

Governor Newsom announces nearly $900 million for cutting-edge transportation systems of the future

While Donald Trump hands China the keys to the 21st-century economy, California is investing in the future

What you need to know: The California Transportation Commission allocated nearly $900 million to modernize mass transit, expand freight capacity, and deploy next-generation transportation technology across the state. The Commission also approved the 2026 State Highway Operation and Protection Program, committing $17.9 billion over four years to safety upgrades, bridge and pavement repairs, and expanded access for pedestrians and cyclists. As the Trump administration pulls back from federal infrastructure commitments and cedes technological leadership to competitors like China, California, the world's fourth-largest economy, is stepping up.

SACRAMENTO – As the Trump administration cedes America's economic and technological edge to China and other global competitors, Governor Gavin Newsom today announced the California Transportation Commission (CTC) has allocated nearly $900 million to advance mass transit systems, expand pedestrian and bicycle options, and improve freight movement. The world's fourth-largest economy is not waiting for Washington to catch up — guided by Governor Gavin Newsom's Build More, Faster – For All infrastructure agenda, these improvements will bolster local transportation options and California's economy.

While Donald Trump surrenders America's technological future to China, California is claiming and building it. The world's fourth-largest economy isn't waiting for a president who has chosen to look backward while our global competitors race ahead. We are making the investments in world-class transit, freight, and transportation technology that will keep California workers and communities at the forefront of innovation and ahead of our competition.

Governor Gavin Newsom

The Commission also approved plans for new investments in California's transportation infrastructure in the coming years. The CTC approved the 2026 State Highway Operation and Protection Program (SHOPP), which invests $17.9 billion over the next four years in the state highway system for new safety features, more access for bicyclists and pedestrians, and repairs of pavement and bridges.

"These investments modernize transit, strengthen freight and expand safe travel options," said California Transportation Secretary Toks Omishakin. "This reflects a continued hallmark of Governor Newsom's administration—strengthening and improving critical infrastructure throughout California's communities."

"The significant allocations made support a sensible balance between immediate project needs with funding for long-term improvements that continue to shape the future of our transportation system," said Caltrans Director Dina El-Tawansy.

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"Transportation is ultimately about people — how we get to work, to school and to each other," said CTC Chair Clarissa Falcon. "The investments we're making improve safety, strengthen mobility, and connect communities across California. The Commission is proud to partner with Caltrans and regional agencies to deliver projects that make a real difference in people's daily lives."

California's transportation investments, California's commitment

This announcement includes investments funded by two proven, bipartisan sources. The funding includes $47 million from the federal Infrastructure Investment and Jobs Act of 2021 (IIJA) and $405 million from California Senate Bill 1 (SB 1), also known as the Road Repair and Accountability Act of 2017.

California has received an annual investment of approximately $16.7 billion in infrastructure funding since IIJA's passage. That includes investments to upgrade the state's roads, bridges, rail, public transit, airports, electric vehicle charging network, ports, and waterways. Approximately 11% of today's total funding comes from this landmark law.

The remaining investments are supported by SB 1, which has provided nearly $5.5 billion annually for transportation projects since 2017. SB 1 calls for splitting the money between state and local agencies. Road projects progress through construction phases more quickly based on the availability of funds, including projects that are partially funded by SB 1.

Notable project investments

• Next-generation tail technology – Bay Area & Southern California | $273 million to deploy cutting-edge technology to rail systems currently under construction, including an expansive tunnel connecting downtown San Jose to Santa Clara as part of BART's regional expansion.
• Port of Long Beach freight expansion | $33 million to expand rail freight operations, strengthening California's position as the nation's premier gateway for trade and commerce.
• Los Angeles rail power stations | $35 million to complete the design and construction of rail power infrastructure in Los Angeles.
• Sacramento EV charging facility | $33 million to build a major public-access electric vehicle charging facility on a 118-acre parcel, advancing California's clean transportation future.
• Del Mar Bluffs stabilization | $3 million to protect eroding coastal bluffs in San Diego County, building upon prior investments to secure critical coastal rail infrastructure from the impacts of climate change.
• Vehicle collision prevention technology | $1.5 million in seed funding for an automated communications system that tracks moving vehicles to prevent collisions — a next-generation solution modeled on air traffic control technology.

For more information about transportation and other infrastructure projects funded with state and federal investments, visit build.ca.gov.

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