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San Diego MTS: $60.4MM to Advance Modernization Projects

The San Diego Metropolitan Transit System (MTS) on March 27 announced that it has been awarded $60.4 million through the State of California’s competitive Transit and Intercity Rail Capital Program (TIRCP) to advance major light rail and electric bus modernization projects. TIRCP, funded by the Greenhouse Gas Reduction Fund, supports transit investments that “reduce emissions, expand mobility options and improve service in disadvantaged communities.”

As part of the funding, MTS received $48,315,000 for Phase 2 of the Orange Line Improvement Project, also known as Rail Ready. This project, the agency says, will deliver critical upgrades to the aging Orange Line corridor, “improving safety, reliability, and long-term state of good repair across approximately 18 miles of track.” Phase 2 focuses on enhancements from Massachusetts Station through El Cajon Transit Center, “building on prior investments and advancing system performance across the eastern segment of the line.” Project elements include:

  • Grade crossing safety enhancements.
  • New universal interlocking crossovers.
  • Replacement of aging signal interfaces.
  • Additional signal, track, and communications improvements.

This funding, MTS says, builds on earlier investments from a 2022 TIRCP award, which supported Phase 1 improvements from 32nd & Commercial Street Station through West Massachusetts Avenue Station. Phase 1 modernized track, signal, grade crossing, and variable message sign (VMS) systems. Infrastructure design for Phase 2 was completed on Dec. 18, 2025, and construction is anticipated to begin in July 2026.

As part of the grant process, MTS requested formal allocation of TIRCP funds from the California Transportation Commission (CTC) this month. Following approval at the March 20 meeting, the funds will be obligated to MTS, enabling construction to proceed as scheduled.

The funding allocated by the CTC is part of TIRCP’s Cycle 6 awards. In 2023, the California State Transportation Agency (CalSTA) allocated more than $3.4 billion statewide for initiatives that “enhance transit safety, increase ridership, modernize infrastructure and strengthen regional connectivity.”

“This investment from the State of California allows MTS to upgrade our transit network and make meaningful improvements for the communities that depend on us most,” said Stephen Whitburn, MTS Board Chair and San Diego City Councilmember. “The projects funded will strengthen safety, reliability and sustainability. These funds help ensure that our riders benefit from clean, efficient and future‑ready transportation for decades to come.”

“Public transit is a lifeline, and this investment in MTS reflects exactly that. These funds will mean more reliable service, cleaner vehicles, and better infrastructure for the San Diegans who depend on transit most to get to work, to school, to each other and home safely,” said Clarissa Reyes Falcon, Chair of the California Transportation Commission. “As both Chair of the California Transportation Commission and a proud San Diegan, I couldn’t be more pleased to see these dollars coming home. I look forward to seeing the difference firsthand alongside the riders this investment is meant to serve.”