Transit Core Capacity Challenge Grants

MTC’s Transit Core Capacity Challenge Grants pay for capital improvements to the Bay Area’s three largest transit systems — investing transit dollars where they can make the biggest difference.

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Credit
Karl Nielsen

MTC is committed to investing the Bay Area’s limited transit dollars where they can do the most good.

In 2013, the Commission pledged $7.5 billion in federal, state and local funds over 15 years to a new Transit Core Capacity Challenge Grant program to finance capital improvements to the Bay Area’s three largest transit systems:

  • San Francisco Muni
  • Bay Area Rapid Transit District (BART)
  • Alameda-Contra Costa Transit DIstrict (AC Transit)

Together, these agencies account for more than 80% of our region’s transit riders, and 75% of low-income and minority riders.

Transit agencies can use Core Capacity Challenge grants to finance:

  • Vehicle replacement
  • Fleet expansion
  • Upgrades to key facilities

How to Qualify

To qualify for Core Capacity Challenge grants, transit agencies must use other funds to match at least 30% of the grant amount. They must also meet performance and efficiency targets identified in MTC’s Transit Sustainability Project.

Funding Sources

MTC will fund the Core Capacity Challenge grants with more than $3 billion in federal transportation money, as well as $875 million expected through the state Cap and Trade program and some $250 million in bridge toll revenue through 2028.

Commitment to Review

Guidelines for the Core Capacity Challenge Grant Program recommend that MTC staff review the program at least every five years to monitor project delivery and changes in investment priorities or revenue streams.