State Funds $7M Agnew Siding Rail Project
California's transportation agency awarded the grant as part of $66.5 million in state rail and transit funding announced this week.
Updated on Nov. 6, 2026 in Financial Aid
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The California State Transportation Agency awarded a $7 million State Rail Assistance grant to the Altamont Corridor Express for the Agnew Siding in Santa Clara. The award is part of $66.5 million in grants distributed to rail projects across the state.
Why it matters
The siding is intended to reduce delays for Capitol Corridor, Altamont Corridor Express, Amtrak Coast Starlight, and freight trains, and to provide space for trains serving events at Levi's Stadium. The project also enables a future fifth daily ACE round trip for California commuters.
The $7 million award comes from a 0.5% sales tax on diesel fuel that funds the State Rail Assistance program, which was created by Senate Bill 1 in 2017. Payment timing depends on when revenue becomes available, with funds accruing through June 2030.
The players
California State Transportation Agency
The state agency that administers the State Rail Assistance program and awarded the grants in this round.
Altamont Corridor Express
A commuter rail service connecting the San Joaquin Valley with the San Francisco Bay Area and Silicon Valley.
Caltrain
A commuter rail service operating along the San Francisco Peninsula and into Santa Clara County.
Metrolink
Southern California's regional commuter rail system serving the Los Angeles area and surrounding counties.
The details
Caltrain received $10 million, including $6 million for signal, track, and safety work and $4 million for a battery-electric train pilot between San Jose and Gilroy. Metrolink received $20 million to avoid proposed cuts to nearly a third of its service.
Timeline
Thursday: California awarded $66.5 million in state transportation grants.
2028: Current timetable for ACE service extension to Manteca, Ripon, Modesto, Ceres, and Sacramento.
June 2030: Expected end of the revenue accrual period for State Rail Assistance funds used in this round.
Funding Context
The State Rail Assistance program was established by Senate Bill 1 in 2017 and is funded by a 0.5% sales tax on diesel fuel. This round draws on revenue that has accrued under that framework, extending its use to commuter and intercity rail projects.
Commuters on the Altamont Corridor Express, Capitol Corridor, and Caltrain could see fewer delays once the Agnew Siding is built. Planned service extensions would bring ACE to Manteca, Ripon, Modesto, Ceres, and Sacramento in 2028.
The takeaway
State rail funding is moving toward projects that reduce delays on shared corridors and expand commuter options. Riders planning around these services should watch for construction timelines and the 2028 ACE expansion schedule.
What happens next
Awards will be paid as funds become available, and planned ACE service extensions are scheduled for 2028.
Further reading
For more on how public funding supports the state's transit network, explore Financial Aid coverage.
Source note: This article includes information reported by Manteca Bulletin.
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