San Diego MTS receives $60.4 million in TIRCP funding

The funding will help advance electric bus and light rail modernization projects.
March 30, 2026
3 min read

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

"This investment from the state of California allows [San Diego] MTS to upgrade our transit network and make meaningful improvements for the communities that depend on us most," said San Diego MTS Board Chair and San Diego City Councilmember Stephen Whitburn. "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." 

The agency received funding for two projects: 

  1. Phase 1 of Electrification of Kearny Mesa Division – $12.1 million: The project will help the agency transition to a 100% zero-emission bus fleet by 2040. Phase 1 includes the construction of a new overhead charging system to support the first 30 battery-electric buses at the Kearny Mesa Division. Construction is anticipated to start in June 2026. 
  2. Phase 2 of Orange Line Improvement Project – $48.3 million: Phase 2 of the Orange Line Improvement Project 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 and additional signal, track and communications improvements. 

"Public transit is a lifeline, and this investment in [San Diego] MTS reflects exactly that,” said California Transportation Commission (CTC) Chair Clarissa Reyes Falcon. “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. 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." 

San Diego MTS says the funding 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, San Diego MTS requested formal allocation of TIRCP funds from the CTC this month. Following approval at the March 20 meeting, the funds will be obligated to San Diego 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 allocated more than $3.4 billion statewide for initiatives that enhance transit safety, increase ridership, modernize infrastructure and strengthen regional connectivity. 

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