CALIFORNIA - Muni's Central Subway and its Van Ness Avenue rapid bus project, plus AC Transit's bus rapid transit project, were recommended to receive tens of millions of dollars in federal funding this week.

The Department of Transportation plans to award Muni $20 million for the Central Subway project, which is to run from Fourth and King streets to Chinatown. The Van Ness project expects to get $15 million. AC Transit's project, to run from San Leandro to Berkeley, is projected to get $15 million.

The money, which was proposed in President Obama's budget, still needs approval and would come from the highly competitive New Starts and Small Starts programs, which help fund major transportation projects.

The $1.6 billion Central Subway would travel at street level from Fourth and King to the Interstate 80 skyway, then underground to Stockton and Jackson streets, with stations near the Moscone Convention Center, Union Square and in Chinatown. Construction is expected to begin this year with service starting in 2018.

The Van Ness project would add dedicated bus lanes, stations, ticket machines and traffic signals that give buses priority on a 2-mile stretch of Van Ness Avenue between Mission and Lombard streets. It is expected to cost $120 million, with construction starting in 2011 or 2012. Service would begin a year later.

"The Central Subway and Van Ness bus rapid transit projects are tremendous investments in San Francisco's transportation future," said Mayor Gavin Newsom.