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Transit and Intercity Rail Capital Program Cycle 8 2026

This funding opportunity provides financial support for public transit agencies and municipalities in California to develop major projects that reduce greenhouse gas emissions, enhance public transit services, and improve connectivity, particularly benefiting disadvantaged communities.

$4,000,000,000
Active
CA
Recurring
Grant Description

The Transit and Intercity Rail Capital Program (TIRCP) is a transformative funding initiative established by Senate Bill 862 and further refined by subsequent legislation, including SB 9 and SB 125, with its authority codified in Sections 75220–75225 of the California Public Resources Code. Administered by the California State Transportation Agency (CalSTA) with implementation support from the California Department of Transportation (Caltrans), TIRCP allocates grant funding from the Greenhouse Gas Reduction Fund (GGRF) and other sources to advance major transit capital projects that reduce greenhouse gas emissions, increase public transit ridership, and improve rail and bus connectivity across California. With the program now continuously appropriated through 2045 under the renamed Cap-and-Invest program (formerly Cap-and-Trade), the 2026 Cycle 8 Guidelines mark a significant investment period aligned with broader state goals under the Climate Action Plan for Transportation Infrastructure (CAPTI) and other strategic frameworks. TIRCP supports intercity rail, commuter rail, urban and bus transit, vanpool services, and ferry systems. Eligible projects include service expansions, acquisition of zero-emission vehicles, network integration, fare system enhancements, and capital upgrades that increase ridership and reduce greenhouse gas emissions. Clean fleet projects are also eligible, including supporting infrastructure such as hydrogen fueling or charging stations. Preference is given to projects that align with CAPTI actions, including those that promote infill housing, zero-emission transportation, and digital infrastructure improvements such as GTFS-Real Time data and contactless payments via the California Integrated Travel Project (Cal-ITP). Network integration and seamless service coordination across agencies are emphasized. Projects must demonstrate quantifiable benefits in greenhouse gas reductions using CARB’s calculator tools and methodologies. A minimum of 25% of program funding must benefit disadvantaged communities, with further requirements under AB 1550 to ensure benefits for low-income populations and geographies. Projects must also align with regional Sustainable Communities Strategies or equivalent greenhouse gas reduction planning frameworks. Applications are evaluated based on primary criteria such as GHG emissions reductions, ridership increases, network integration, and safety improvements. Secondary criteria include alignment with housing policies, promotion of active transportation, clean vehicle deployment, workforce development, displacement mitigation, and consistency with the California State Rail Plan. Projects will also undergo an evaluation using the CAPTI-aligned Caltrans System Investment Strategy (CSIS) metrics. The 2026 Cycle 8 application schedule includes the release of draft guidelines on January 9, 2026, and a call for projects on February 20, 2026. Virtual workshops for applicants were held on February 11, 2026, and the comment period on draft guidelines closed on February 18, 2026. Optional project concept meetings are available between March 2–13, 2026. Final applications must be submitted by May 14, 2026. CalSTA anticipates announcing awards no later than September 18, 2026. Projects selected in this cycle will receive funding for the period covering fiscal years 2026–27 through 2030–31. Projects not fully allocated by the end of 2025–26 may also be programmed in this cycle. Applications must include a detailed scope, budget, quantification of benefits, and supporting documentation. Required components include mapping of project benefits (including disadvantaged and low-income communities), cost breakdowns, timelines, letters of support, and evidence of stakeholder engagement. Applicants must submit an Electronic Project Programming Request (ePPR) and comply with CARB’s Benefit Assessment Tool and Funding Guidelines. Caltrans and CalSTA offer technical assistance before and after award to support applicants, especially small and rural agencies, and to help applicants model ridership and emissions benefits. Post-award, quarterly reporting and a Final Delivery Report are required, including metrics like daily ridership and emissions reductions. Eligible applicants include public transit agencies, transportation authorities, municipalities operating transit services, and joint powers authorities. Private companies may partner with public agencies but cannot apply directly. Projects must be scalable or separable where feasible, and funding leverage is encouraged though not mandatory. While there is no formal matching requirement, applicants must be able to absorb cost overruns and sustain operations over the useful life of the investment. Letters of support from stakeholders, including MPOs, community organizations, and regional agencies, are strongly recommended. Applications will be publicly posted prior to award, and selected projects will be listed in a 5-year Program of Projects published by CalSTA.

Funding Details

Award Range

Not specified - Not specified

Total Program Funding

$4,000,000,000

Number of Awards

Not specified

Matching Requirement

No

Additional Details

No cap; awards based on project scope and geographic equity.

Eligibility

Eligible Applicants

Public and State controlled institutions of higher education
County governments
City or township governments
Special district governments

Additional Requirements

Eligible applicants are public agencies, including joint powers agencies, that operate or have planning responsibility for intercity rail, commuter rail, bus, vanpool, ferry, or related transit systems. Private companies may participate as partners but may not apply directly.

Geographic Eligibility

All

Expert Tips

Clearly show GHG reductions, integration with housing/transit systems, support from planning authorities, and benefits to disadvantaged communities. Prioritize scalability and readiness.

Key Dates

Application Opens

February 20, 2026

Application Closes

May 14, 2026

Contact Information

Grantor

California State Transportation Agency (CalSTA)

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Categories
Transportation
Environment
Infrastructure
Workforce Development
Community Development

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