Recently, the Obama Administration renewed its commitment to the Downtown Riverfront Streetcar Project, designating $75 million in federal funding in the President’s proposed budget for Federal Fiscal Year 2017. If approved by Congress, the Small Starts Federal Transit Administration (FTA) grant would provide 50 percent of the funding for the $150 million project.

The cities of Sacramento and West Sacramento, along with Sacramento Regional Transit District and Yolo County Transportation District have been working with the Sacramento Area Council of Governments (SACOG) over several years to secure this federal funding. The streetcar was identified in the President’s Fiscal Year 2016 budget for accelerated project delivery and the streetcar met a number of significant milestones in 2015, including full clearance under the California Environmental Quality Act and completion of 30 percent of the project’s design and engineering. In 2015, the FTA also awarded the Sacramento Area Council of Governments a $1.1 million grant to study and promote transit-oriented development along the streetcar route. The funds will help the cities of West Sacramento and Sacramento create a toolkit for land use development that focuses on revitalization and increased density in the region’s urban core. Coordinated land use and transportation planning and investment are integral to a thriving urban core, which also supports housing and transportation choices in the Sacramento region’s suburban and rural communities.

“Bringing streetcars back to our city is a vital part of my vision for a more connected Sacramento,” said Congresswoman Matsui. “[This recent] announcement of substantial federal funding means we are one step closer to the realization of the Downtown Riverfront Streetcar Project, which will not only spark economic development by efficiently linking Sacramento businesses, residents, and major landmarks, but will also provide Sacramentans with an environmentally friendly public transportation option as our region continues to grow. I want to thank FTA Acting Administrator Therese McMillan for her continued partnership, and I look forward to cooperation at the state and local level on a project that is so critical for the people and economy of Sacramento.”

In the near term, the project planning team will meet with local property owners and project partners to explore options to secure the final local financing commitment. “I am happy with the announcement that the Downtown Riverfront Streetcar has been included in the President’s budget. This award, coupled with the $1.1 million for transit-oriented development along the streetcar route, is key to broadening the place-making investments that property owners, like myself, have been making for years. Public-private partnerships are key to the continued smart growth and economic success of our region’s urban core,” said David Taylor, President and Founder of David S. Taylor Interests and Chair of the Board for the Downtown Sacramento Partnership.

The public-private partnership for the streetcar project supports implementation of the Metropolitan Transportation Plan/Sustainable Communities Strategy (MTP/SCS) and the Sacramento Region Blueprint. Within the next 60 days, the streetcar planning team will announce the consultant selected to lead the final design and engineering portion of the Streetcar.

West Sacramento Mayor Christopher Cabaldon said, “With the largest funding commitment for any streetcar project in the nation, this is the strongest possible shot in the arm for our project, following two years of intensive evaluation of ridership projections, economic impact, and need. We’re on track!”

Sacramento City Council Member Steve Hansen, whose district includes Downtown Sacramento upon hearing the news said, “We are elated to be included in the President’s Budget. This is not only a significant milestone for the project, but it is a reflection of the streetcar's broad support from private and public partners. The streetcar is an essential urban planning tool for our urban core that promotes cleaner air, new housing, and allows people to go car free.”

Project planning for the Downtown Riverfront Streetcar is a partnership of the cities of West Sacramento, Sacramento, Sacramento Regional Transit, Yolo County Transportation District and SACOG. The streetcar remains on schedule to begin construction in late 2017, and serve passengers in 2020. U.S. Department of Transportation Budget Highlights are online.

SACOG develops the region’s long range transportation plan and serves as a forum for innovative and integrated regional collaboration to preserve a high quality of life for residents. In addition to long-range transportation planning, SACOG researches a variety of issues, including land use, air quality, water, and rural sustainability. SACOG works to ensure the Sacramento region receives its fair share of state and federal funding for transportation infrastructure.