Governor Gavin Newsom announced that $2.5 billion has been approved to fund over 150 transportation projects across California. 

California’s infrastructure received a “C-” in the 2025 Report Card as published by the American Society of Civil Engineers (ASCE). A “C-” grade indicates that the state’s built environment lacks the resources to keep pace as one of the largest economies, especially given the diverse environmental challenges affecting its infrastructure.

The California Transportation Commission (CTC) will use the funding to improve state highway systems, improve travel time, increase multimodal options, and strengthen state infrastructure against severe weather and climatic conditions. The newly approved funding package brings the Newsom administration's total transportation allocation for FY 2025-26 to $13.8 billion.

Governor Newsom stated, “Through repairing aging roads and bridges, creating world-class transit and freight systems, expanding public transit, and leading technological innovation — we are ushering in the golden age of transportation. Investments like these drive our economy while creating good-paying jobs across the state.”

The source of the latest funding includes $547 million from the IIJA (Infrastructure Investment and Jobs Act), $736 million from the State Senate Bill (SB 1), the Road Repair and Accountability Act of 2017, and the remaining $1.1 billion from the State Highway Account, the general fund, and other state and federal programs.

Some key projects include:

• $257 million for the Southwest LA County mobility hubs to improve connectivity ahead of the LA 2028 Olympic Games 
• $99 million for Whiskey Creek Bridge renovation to replace the historic bridge on State Route 299
• $64 million to rehabilitate pavement and safety elements on Interstate 215
• $60 million for building a new interchange on SR 156
• $6.7 million for creating a high-visibility crosswalk along Milpas Street in Santa Barbara, one of the city’s most hazardous
• $727,000 for fixing gaps in Joe Rodota Bike Trail
• $518,000 for improving the signal and crossings at Marysville Boulevard in Sacramento

California has invested $21.5 billion in infrastructure projects since IIJA’s inception, leading to the creation of approximately 280,000 jobs. 

“These investments fuel the state’s mission to deliver a transportation system that is evolving and continuing to serve all Californians, regardless of their travel mode," California Transportation Secretary Toks Omishakin explained. "The [funding] supports Governor Newsom’s vision to improve the state’s infrastructure and further prepare and equip us against the current and future effects of climate change.” 

Under Governor Newsom, the state has one of the most ambitious transportation projects. The California State Transportation Agency oversees over $12 billion in annual transportation funding across eight state agencies.