California allocated $2.7 billion in funding for more than 150 transportation projects to improve highway safety, strengthen infrastructure against extreme weather, and expand transit access, Governor Gavin Newsom announced August 28, 2026.
The investment brings total transportation allocations under the Newsom administration to approximately $81.1 billion since 2019, supporting the creation of more than 800,000 jobs, the Governor's office said.
Notable projects include $267 million to rehabilitate the Caldecott Tunnel in Orinda, including upgrades to ventilation, pavement, and electrical systems; $76.5 million for a wildlife crossing and fencing along Interstate 5 near Dunsmuir in Shasta County; and $33.5 million for three fish passage projects on the South Fork of the Eel River in Humboldt County. The funding also includes $63 million to add two High Occupancy Vehicle lanes to State Route 37 in Sonoma County, and $2.45 million in safety upgrades to four transit stations in Los Angeles County ahead of the 2028 Summer Olympics.
Of the combined total, nearly $1.6 billion is funded by President Biden's Infrastructure Investment and Jobs Act, and another $542 million from California's Senate Bill 1. California has invested approximately $21.5 billion in infrastructure projects under the federal law, according to the state.