To provide operating assistance funding to santa cruz metro for the purpose of providing fixed-route bus public transportation to the communities of santa cruz county including the santa cruz and…

The Federal Transit Administration awarded Santa Cruz Metropolitan Transit District $24.356 million on July 20, 2026, under the Federal Transit Formula Grants program (CFDA 20.507) to provide operating assistance for fixed-route bus public transportation in Santa Cruz County.

The funding supports direct operating expenses including labor, fuel, tires, and overhead associated with provision of fixed-route bus service to the Santa Cruz and Watsonville urbanized areas. Expected outcomes include continuation of public transit operations that reduce traffic congestion, improve surface transportation mobility and efficiency, and lower greenhouse gas and particulate emissions from roadway transportation. The service benefits transit riders, commuters, persons without access to private automobiles, students from local primary and secondary school districts as well as Cabrillo Community College and University of California Santa Cruz, area employers, and residents of disadvantaged communities within Santa Cruz County and the two urbanized areas.

The award obligates $24.356 million with a period of performance ending June 30, 2027. Performance occurs in California. No sub-recipients are listed.

Activities

Operating assistance including direct labor material (e.g. fuel tires) and overhead expenses associated with provision of fixed-route bus public transportation services.

Expected outcomes

Provision of public fixed-route bus operations within santa cruz county santa cruz UZA and watsonville UZA is expected to continue providing benefits to the public including reducing traffic congestion on area roadways improving mobility and surface transportation efficiency in santa cruz county reducing greenhouse gas (GHG) and particulate emissions associated with roadway transportation.

Intended beneficiaries

Beneficiaries of santa cruz metro transit operations included transit riders including commuters persons who lack access to a private automobile students including students of local primary and secondary school districts cabrillo community college and the university of california santa cruz; area employers who may or may not subsidize employee commuter benefits; and persons living in disadvantaged communities (dacs) within santa cruz county and the santa cruz and watsonville uzas.