One Bay Area Grant 3 (OBAG 3)

The One Bay Area Grant, now in its third iteration, guides how MTC distributes federal transportation funding from the Federal Highway Administration to projects and programs that improve safety, spur economic development and help the Bay Area meet climate change and air quality improvement goals.

Noah Berger

The third round of One Bay Area Grant funding (OBAG 3) was adopted by the Metropolitan Transportation Commission in January 2022 and includes more than $750 million in federal funding for projects from 2023 to 2026.

The OBAG 3 program is divided into a Regional Program, managed by MTC, and a County & Local Program, managed by MTC in partnership with the nine Bay Area County Transportation Agencies (CTAs).

View MTC Resolution 4505 for complete OBAG 3 Program details.

Regional Program Details

  • $375 million over 4 years
  • Funds are targeted to address critical climate and focused growth goals of Plan Bay Area 2050, and used to coordinate and deploy strategies that are best suited for regional implementation, such as:
    • Climate Initiatives
    • Transformational Transit Action Plan near-term investments
    • Near-term multimodal operational improvements, such as Bay Bridge Forward
    • Priority Development Areas (PDAs), Priority Conservation Areas (PCAs), and other new growth geographies planning and implementation
    • Complete Streets Policy and Regional Active Transportation Plan
    • Regional Safety/Vision Zero Policy
    • Pavement Management Program

County & Local Program Details

In response to MTC’s regional call for projects in May 2022, County Transportation Agencies (CTAs) conducted countywide outreach and initial project prioritization and submitted a project nomination list for consideration by MTC (in September 2022). MTC staff evaluated CTA nominations using regional criteria and recommended a subset of projects for OBAG 3 funding to the Commission in January 2023. Key program features include:

  • $383 million over 4 years
  • Funding for local-priority projects nominated by CTAs and selected by MTC
  • Supports a wide range of project types, and projects in Priority Development Areas (PDAs)

Partner Agency Resources

The following resources are provided to assist program partners in understanding and complying with OBAG 3 policies and requirements. Additional resources will be added as program areas are developed.

OBAG 3 Funding Supports the Regional Growth Framework

Priority Conservation Areas (PCAs)

PCAs help protect natural habitats and preserve open space for future generations.

Child in field
Priority Development Areas (PDAs)

PDA transportation investments help build sustainable communities near public transit.

A man sits outdoors in the Bay Meadows Priority Development Area in San Mateo.

OBAG 3 grants advance affordable housing and anti-displacement policies.

Construction of a multifamily home.

OBAG 3 Funding Supports Climate Protection Programs

Safe Routes to School

These programs create safer routes for walking or biking to school, and offer education to students and parents.

A group of students using crosswalk
Climate Initiatives

MTC’s climate initiatives help reduce the transportation sector’s carbon footprint and meet emissions-reduction targets for the region.

Pedestrians and transit near housing

Staff Contact

Thomas Arndt, Funding Policy & Programs
Phone: 415-820-7983
Email: tarndt@bayareametro.gov