Octa's transportation blog

Updated OC Streetcar Funding Plan Approved

OCTA has approved an updated funding plan for the OC Streetcar project, bringing the total project cost to $407.76 million.

The new funding plan brings the project one step closer to receiving a $148.96 million full-funding grant agreement from the Federal Transit Administration (FTA). The agreement is expected to be finalized in the coming months.

Since the approval of the original funding plan in May 2017, the project has experienced delays that, along with higher construction bid prices, have impacted the project’s cost estimate. In Southern California and around the nation, a strong economy and increased construction activity, rising material costs, skilled labor shortages and inflation have led to increasing prices in major infrastructure projects.

To accommodate for the increase, the OCTA Board of Directions approved the use of additional funds from Measure M (also known as OC Go), Orange County’s half-cent sales tax for transportation improvements. Overall, approximately 40 percent of the project will be funded through OC Go and the remaining 60 percent will be funded with federal and state dollars.

OC Streetcar construction is expected to kick off later this year, with testing and operations scheduled to begin in 2021. Find more information about OC Streetcar here.


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