Federal Funding

Federal Transportation Improvement Program (FTIP)

The California Department of Transportation (Caltrans), in cooperation with California’s 18 Metropolitan Planning Organizations (MPOs) and rural Regional Transportation Planning Agencies (RTPAs), has prepared California’s Draft 2027 Federal Statewide Transportation Improvement Program (FSTIP) for public review and comment.  The 21-day public review period for California’s Draft 2027 FSTIP begins on October 9, 2026, and ends on October 30, 2026.

The FSTIP is a federally mandated, statewide, multi-year program of transportation projects.  California’s Draft 2027 FSTIP will cover four Federal Fiscal Years (FFYs) from 2027 through 2030.  Each of California’s 18 MPOs develops its own Federal Transportation Improvement Program (FTIP), which identifies a financially constrained, prioritized program of transportation projects.  The Draft 2027 FSTIP incorporates projects within all 18 MPOs’ boundaries, as well as transportation projects in rural areas beyond the MPOs’ boundaries.  The FSTIP includes funding phases of capital and support (non-capital) as well as fiscal year of allocation for the transportation projects.

During the public review period, all public comments received by Caltrans will be documented and addressed in Exhibit IX, the Response to Public Comments section in the Final 2027 FSTIP document.  Following the 21-day public review period, Caltrans will submit the final FSTIP to the Federal Highway Administration (FHWA) and the Federal Transit Administration (FTA) by November 13, 2026. Once approved, the 2027 FSTIP will replace the previously approved 2025 FSTIP.

California’s Draft 2027 Federal Statewide Transportation Improvement Program (FSTIP) is available for public review and comment.

Please submit your comments via email to Caltrans’ Office of Federal Programming and Data Management at FSTIP@dot.ca.gov.

2027 FTIP

Public review of SBCAG’s draft 2027 Federal Transportation Improvement Program (FTIP) began Wednesday, August 5 and concluded on September 4, 2026. Below is the SBCAG Board adopted 2027 FTIP adopted on September 17, 2026..

Every year the Federal Government provides states, counties, cities and transit agencies with funding for transportation projects. The funding is received by the federal government through federal gas taxes. The Federal Transportation Improvement Program (FTIP) is adopted by SBCAG every two years and serves as a single reference document that the public and government agencies can review to understand where, when and how federal funding will be spent within Santa Barbara County. An accurate project description, including project scope and funding allocated, must be listed in SBCAG’s FTIP before federal funds can be expended on the projects.

The Santa Barbara County Association of Governments is the designated Metropolitan Planning Organization (MPO) for Santa Barbara County and its incorporated cities and must carry out transportation planning and programming responsibilities specified in federal regulations. Among SBCAG’s many responsibilities include the preparation and adoption of a multi-year FTIP once every two years.

The FTIP serves as a short-term program for the use of anticipated federal transportation funds to maintain, operate and improve the region’s multi-modal circulation system. The FTIP identifies all federally funded highway, transit and other surface transportation projects in the county (along with their funding sources) that are scheduled for implementation in the following four years, Fiscal Year 20267/27 to Fiscal Year 2029/30. It also includes projects are subject to federally required action or are regionally significant. The FTIP must be financially constrained by year. This means that the amount of funding devoted to projects must not exceed the amount of estimated funding available. Only projects listed in the FTIP are eligible to receive federal transportation funding.

2025 FTIP

Amendments:

Infrastructure Investment and Jobs Act (IIJA)

IIJA (also known as the Bipartisan Infrastructure Law) provides approximately $350 billion over a five-year period. Some of the funding is apportioned to States based on formulas, and IIJA also provides funding through various competitive grant programs. SBCAG is eligible for multiple IIJA programs including:

Federal Transit Administration 5307 – Urbanized Area Formula Grants

Federal Transportation Administration (FTA) Section 5307 funding is apportioned to SBCAG by the FTA for transit operators in urbanized areas with a population of 50,000 or more. Any public agency with public transit capital and operating funding needs within, to\from, or between urbanized areas in Santa Barbara County may apply for FTA 5307 funding.

The below table lists the urbanized areas in Santa Barbara County that qualify for FTA 5307 funding and designated grantees:

Federal Transit Administration Section 5311 – Intercity Bus Program

Under Section 5311 of the Federal Transit Act, funds are made available annually for transit projects in non-urbanized areas to provide capital, planning, and operating assistance. In California, the Section 5311 program is administered by Caltrans Division of Mass Transit with funds apportioned to each region based on non-urbanized area population.

The below table lists the non-urbanized areas in Santa Barbara County that applied for and received FY2021/22 and 2022/23 FTA 5307 funding and designated transit operators:

The following links provide additional information:

Federal Transit Administration Section 5339 – Bus and Bus Facilities

Section 5339 grant program provides capital funding to replace, rehabilitate, and purchase buses, vans, and related equipment, and to construct bus-related facilities. Caltrans Division of Rail and Mass Transportation administers a small urban (population 50,000 to 199,999) formula component to transit agencies in Santa Barbara County’s Small Urbanized Areas. In addition to the formula allocation, Federal Transportation Administration (FTA) 5339 includes two discretionary components: the Bus and Bus Facilities Discretionary Program and the Low or No Emissions Bus Discretionary Program.

The below table lists the Small Urbanized areas in Santa Barbara County that received FY 2022 FTA 5339 formula funding and designated transit operators:

The following links provide additional information:

Surface Transportation Program (STP)

The Regional Surface Transportation Program (RSTP) was established by California State Statute utilizing Surface Transportation Program Funds that are identified in Section 133 of Title 23 of the United States Code.  Eligible projects include construction, reconstruction, rehabilitation, resurfacing, restoration, and operation improvements on select transportation and transit infrastructure.

Each year, the Federal Highway Administration (FHWA) apportions flexible funding to Metropolitan Planning Organizations under the Surface Transportation Program (STP). SBCAG exchanges these funds as allowed by State statute for state gas tax funds to replace the administrative costs to project sponsors. State law requires that STP funds be shared with local agencies.

Regional Surface Transportation Program/ Local Surface Transportation Program Claim Tracker (updated 10/28/2025) Regional Surface Transportation Program/ Local Surface Transportation Claim Form