San Diego – The San Diego Metropolitan Transit System (MTS) has been awarded $60.4 million through the State of California's competitive Transit and Intercity Rail Capital Program (TIRCP) to advance major electric bus and light rail modernization projects. TIRCP, funded by the Greenhouse Gas Reduction Fund, supports transit investments that reduce emissions, expand mobility options and improve service in disadvantaged communities.
"This investment from the State of California allows MTS to upgrade our transit network and make meaningful improvements for the communities that depend on us most," said Stephen Whitburn, MTS Board Chair and San Diego City Councilmember. "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."
"Public transit is a lifeline, and this investment in MTS reflects exactly that. 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," said Clarissa Reyes Falcon, Chair of the California Transportation Commission. "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."
MTS received funding for two projects, which are outlined as follows.
Phase 1 of Electrification of Kearny Mesa Division – Award: $12,132,000
This project represents a major step in MTS's agency-wide 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. The improvements will establish the foundational infrastructure needed to scale up electric bus operations across MTS.
Phase 2 of Orange Line Improvement Project – Award: $48,315,000
Phase 2 of the Orange Line Improvement Project, also known as Rail Ready, 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
- Additional signal, track, and communications improvements
This 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, MTS requested formal allocation of TIRCP funds from the California Transportation Commission (CTC) this month. Following approval at the March 20 meeting, the funds will be obligated to 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 (CalSTA) allocated more than $3.4 billion statewide for initiatives that enhance transit safety, increase ridership, modernize infrastructure and strengthen regional connectivity.
About MTS
The Metropolitan Transit System (MTS) operates 93 bus routes and four Trolley lines in 10 cities and unincorporated areas of San Diego. MTS is a leader in advancing initiatives to create a greener, cleaner and better-connected transit system in San Diego. Each weekday, more than 250,000 passenger trips are taken throughout the MTS system, taking people to work, school, health appointments and other essential trips. In FY 2025, MTS served more than 81 million riders. For service schedule updates, news, alerts and more information on how you can use public transportation, go to www.sdmts.com.
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