RTC Receives $128.7 Million from State for Multimodal Projects Connecting Watsonville and Santa Cruz

The Santa Cruz Regional Transportation Commission (RTC) was awarded $128.7 million in grant funds from the California Transportation Commission (CTC) for its Watsonville to Santa Cruz Multimodal Corridor Program for the implementation of several multimodal projects throughout the county. Funded projects include Highway 1 auxiliary lanes and bus-on-shoulder facilities between State Park Drive and Freedom Boulevard, Coastal Rail Trail Segment 12 in Aptos, Soquel Drive Multimodal improvements, and infrastructure to support Santa Cruz METRO RAPID service between Watsonville and Santa Cruz.

This funding is part of $684.7 million in Senate Bill (SB) 1 funds allocated by the CTC this week through its 2024 Solutions for Congested Corridors Program (SCCP) and 2024 Local Partnership Program (LPP) to repair and improve transportation infrastructure throughout the state. Statewide, the RTC was one of only seven projects to receive SCCP funding ($103.7M) and one of 11 projects to receive LPP funding ($25M).

“This investment from the CTC is a major win for our community,” said Sarah Christensen, Executive Director of the RTC. “This project will transform how people travel across our county—connecting residents to schools, jobs, and essential services with more reliable transit, safer bicycle and pedestrian infrastructure, and a better overall experience for all travelers. Together, these improvements will enhance the quality of life for residents, while also advancing equity, decreasing congestion and emissions, and creating a more connected and sustainable future for Santa Cruz County.”

This grant award provides full funding for construction of the following improvements:

• Northbound and southbound auxiliary lanes and bus-on-shoulder facilities on Highway 1 between State Park Drive to Freedom Boulevard, completing the final phase of the eight-mile facility;
• Coastal Rail Trail Segment 12 along the Santa Cruz Branch Rail Line right-of-way between State Park Drive and Rio del Mar Boulevard, including four bicycle and pedestrian overcrossings over Highway 1 (x2) and Soquel Drive (x2);
• Multimodal improvements on Soquel Drive between State Park Drive and Freedom Boulevard, including buffered and protected bike lanes, signal upgrades, sidewalk gap closures, ADA curb ramps, and enhanced crosswalks for pedestrians; and
• Improvements for Santa Cruz METRO bus routes envisioned in their 2024 RAPID study, including in-lane boarding platforms, transit signal priority at 60 traffic lights, shelters, real time displays, and more.

“This $128.7 million investment marks a transformative moment for Santa Cruz County,” said Eduardo Montesino, Chair of the RTC. “These funds will deliver long-overdue improvements to the Watsonville to Santa Cruz corridor. It’s a huge step toward a more equitable and climate-friendly future, and I’m proud of the regional collaboration that made this possible.”

Improvements include addressing what’s locally referred to as the “Aptos Strangler” where Highway 1, the Santa Cruz Branch Rail Line, and Soquel Drive all converge near Aptos Village, with the waterways of Aptos Creek, Valencia Creek, and Trout Gulch acting as major barriers to transportation. The project includes dedicated bicycle and pedestrian overcrossings over Highway 1, Aptos and Valencia Creeks, and Soquel Drive that provide a direct and safe connection between communities like Seacliff and Rio del Mar to Aptos Village. It also addresses a regional pinch point on Highway 1 by extending the auxiliary lane and bus-on-shoulder improvements already under construction another 3 miles south through the most constrained section of the highway.

“I’m thrilled to see this grant come to Santa Cruz County, with the majority of these investments directly benefiting District 2,” said Santa Cruz County Supervisor Kimberly DeSerpa, who also serves on the RTC board. “The safety improvements along Soquel Drive—especially those enhancing routes to Aptos schools—are vital for protecting our kids, supporting families, and encouraging safe walking and biking.”

The Watsonville to Santa Cruz Multimodal Corridor Program is composed of innovative projects that improve all modes of travel through Santa Cruz County – Highway 1, Soquel Avenue/Soquel Drive/Freedom Boulevard, and the Santa Cruz Branch Rail Line – that will address vital transportation needs of the community. A number of projects identified in the corridor program are already completed or currently under construction, including:

• Highway 1 auxiliary lanes and bus-on-shoulder facilities between 41^st Avenue to Soquel Drive (completed) and between Bay/Porter to State Park Drive (under construction);
• New bicycle and pedestrian overcrossings at Chanticleer Avenue (completion estimated in July) and Mar Vista Drive (under construction);
• New Capitola Avenue overcrossing with sidewalks and bicycle lanes (under construction); and
• Soquel Avenue/Drive improvements, including over five miles of buffered/protected bike lanes, 46 green bike boxes, 100 ADA ramps, 96 crosswalk upgrades, sidewalk gap closures, crosswalk warning devices at 10 mid-block locations, adaptive signal control at 23 intersections (under construction with completion estimated in late summer 2025).

The projects funded by this grant are expected to go to construction as soon as 2026. Refer to the project fact sheet for more information.

SB 1 provides approximately $5 billion in transportation funding annually that is shared equally between the state and local agencies. For more information about transportation projects funded by SB 1, visit https://catc.ca.gov/programs/sb1.