Funding
Final Funding Secured to Complete Santa Barbara U.S. 101 Multimodal Corridor
July 21, 2025
$134 million award—the largest in California—completes funding for U.S. 101 through Santa Barbara and delivers major multimodal upgrades.
In the heart of Santa Barbara, local and state officials gathered Thursday at the Michael Towbes Library Plaza to announce the final $134 million secured to complete the Santa Barbara U.S. 101 Multimodal Corridor through the City of Santa Barbara.
The $134 million award, approved unanimously by the California Transportation Commission last month, was secured by the Santa Barbara County Association of Governments (SBCAG) and the Department of Transportation (Caltrans) through Cycle 4 of the competitive Senate Bill 1 (SB1) funding programs.
“I am proud that the state doubled the community investment to bring necessary highway improvements to our region,” said Senator Monique Limón. “This is the largest SB1 investment in the state, and I am grateful that the Central Coast will have the opportunity to benefit from reduced traffic congestion and better roadway safety.”
The investment completes the funding needed to construct the final Highway 101: Santa Barbara segment—advancing construction from Olive Mill Road and Hermosillo Road to Sycamore Creek—and includes peak-period carpool lanes, major interchange reconstruction at Cabrillo Boulevard, and multimodal improvements in the City of Santa Barbara.
“Senate Bill 1 is one of California’s most transformative infrastructure investments,” said Assemblymember Gregg Hart. “Without it, a project like this would have taken more than 50 years to complete. This funding delivers real results now—reducing congestion, improving safety, supporting over 14,000 local jobs, and strengthening the communities we serve.”
Since launching the first phase of the Highway 101 corridor project—from Milpas Street to Hot Springs Road—in 2008, SBCAG, Caltrans and their partners have led an effort to improve the safety and operations of Highway 101 and deliver the Central Coast’s first-ever carpool lane. The project also brings pedestrian, bicycle, transit, coastal access and local circulation improvements such as roundabouts to the Cities of Carpinteria and Santa Barbara, as well as the unincorporated communities of Summerland and Montecito.
With Thursday’s funding announcement, officials confirmed the full corridor—from Santa Barbara to Mussel Shoals—is on track for completion by 2028.
“As Mayor—and someone who has seen this project from the start—this truly feels like a full-circle milestone for Santa Barbara,” said SBCAG Chair and Santa Barbara Mayor Randy Rowse. “This moment belongs to the residents of Santa Barbara County. Their patience, their input, and their consistent support make it possible for us to reach the finish line—and to do so in a way that reflects our character and priorities.”
The SB1 award also funds new sidewalks and lighting in Santa Barbara’s Eastside, eight fast-charging electric vehicle stations, replacement of aging rail bridges, and safer, dedicated routes for walking and biking along Cabrillo Boulevard. The Ventura County Transportation Commission will use a portion of the funding to purchase three zero-emission buses for the Coastal Express, further improving sustainable connectivity between Ventura and Santa Barbara counties along the Pacific coast.
The announcement featured a ceremonial check presentation with California Transportation Commission Chair Darnell Grisby and Vice Chair Clarissa Reyes Falcon.
“The California Transportation Commission is proud to be a funding partner on this project,” said Commission Chair Darnell Grisby. “The Santa Barbara US 101 Multimodal Corridor Project is a wonderful example of how Senate Bill 1 dollars deliver the greatest return possible on investment by improving the movement of goods, preserving the environment, creating good-paying jobs, and reducing out-of-pocket costs for all Californians. Congratulations to the entire Santa Barbara region on this exciting achievement.”
Construction on the Highway 101 Montecito and Santa Barbara (South) segments is anticipated through 2026. The Highway 101: Santa Barbara (North) segment, from Hermosillo Road to Sycamore Creek, is expected to begin in May 2026.
The public is encouraged to find more information about construction and sign up for biweekly construction updates on the project’s website at www.SBROADS.com, or by calling (805) 845-5112, or emailing info@SBROADS.com.
