In an effort to help municipal and local transit operators access federal, state, and local funding, the Los Angeles County Metropolitan Transportation Authority board approved $2.9 billion in Fiscal Year 2026 transit fund allocations.

“The $2.9 billion in Fiscal Year 2026 transit fund allocations represents almost 30% of the metro’s budget and will ensure continued mobility improvements throughout Los Angeles County, including those areas, such as Avalon, Lancaster, and Santa Clarita, that LA Metro doesn’t currently serve directly,” said LA Metro Board Chair and Whittier City Council Member, Fernando Dutra.

As the Regional Transportation Planning Agency for Los Angeles County, LA Metro provides oversight and distributes state and federal pass-through grants.

These grants along with funding from locally imposed and collected sales taxes provide an immediate infusion of resources to 66 transit operators and 89 local jurisdictions for a wide range of local transportation improvements.

Countywide Transit and Mobility Upgrades

The board approval allows the continued funding of transportation projects, programs, and services throughout Los Angeles County, including:

• California Transportation Development Act (TDA) Article 4, State Transit Assistance & SB1 Funds: These programs provide much-needed operating and capital funding for 17 municipal transit operators throughout LA County.

• California TDA Article 3 Funds: These funds are allocated to all 89 jurisdictions based on population and fund the maintenance of regionally significant Class I bike paths, pedestrian enhancements, and other bike improvements.

• California TDA Article 8 Funds: Allocations for areas within Los Angeles County but outside the LA Metro service area. This includes allocations to Avalon, Lancaster, Palmdale, Santa Clarita, and portions of unincorporated areas of Los Angeles County for transit, street, and road projects.

• Clean Fuel Bus Capital Facilities and Rolling Stock Fund: The Measure R ordinance also provides a lump sum allocation of $150.0 million over the life of the ordinance for clean fuel and bus facilities. This fund is allocated to the authority and LA County Municipal Operators at $10 million every even year.

• Local Return Funding: Over $800 million is estimated to be awarded in FY26 to all LA County jurisdictions from the local sales tax measures to support local transportation within their jurisdictional boundaries.  Examples include transit services, roadway improvements, bicycle and pedestrian infrastructure, traffic signal coordination, and senior dial-a-ride services.

• Measure R 20% Bus Operations: Measure R, approved by voters in November 2008, allocates 20% of the revenues for bus service operations, maintenance, and expansion.

• Proposition C (Prop C) Municipal Operators Service Improvement Program (MOSIP): The program is intended to provide bus service improvements to the transit-dependent in Los Angeles County by reducing overcrowding and expanding services.

• Prop C Transit Service Expansion Program (TSE): Created in 1990 to increase ridership by providing funds for additional services to relieve congestion, the TSE Program continues for eight Municipal Operators, including Culver City, Foothill Transit, Gardena, Long Beach, Torrance, Antelope Valley, Santa Clarita, and LADOT, for expansion or introduction of fixed-route bus service in congested corridors.

“LA Metro strives to ensure that all people, regardless of where they live in LA County, can benefit from healthier, stronger, and safer communities,” LA Metro CEO Stephanie Wiggins said. “Thanks to the LA Metro Board’s action, $2.9 billion will be distributed throughout Los Angeles County to ensure local street, sidewalk, bike lane, and active local transportation improvements can continue without delay.”

Fund dispersal will begin in July 2025 and continue throughout Fiscal Year 2026.