LA to seek extension instead of forfeiting $100M in state transportation funds

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Background: The three projects were among a handful of L.A.-based projects that won money through the state’s Active Transportation Program, which funds capital projects that promote walking, cycling or other non-motorized ways to get around. Jurisdictions that win the funds have to adhere to strict timelines to retain the money.

Lack of city resources: On Feb. 13, City Council members Jurado and Tim McOsker presented a motion that said the city’s “staffing, funding and implementation constraints” meant it could not progress with the three projects on time. The request to cancel the grant award is now “on hold,” Jurado’s office said on Monday. Jurado said in a statement to LAist that Boyle Heights and Skid Row "have waited too long for these investments for them to slip away."

Extensions: The Bureau of Street Services, which is the lead agency for the three projects, is instead pursuing an extension on the deadlines. That decision is expected to be made in May 2026 by the California Transportation Commission, which administers the program. "In the interim, we will be working collaboratively with all project partners to identify a feasible path forward, mindful of the challenges related to resources, costs and timelines," Dan Halden, director of external relations for the Bureau of Streets Services, said in a statement.

The projects: According to city documents, the state approved funding allocations for the environmental review phases of each project in August 2023, and their status has remained at “0% Pre-design” ever since. In a January 2025 presentation to a city committee that tracks progress on street and transportation projects, officials said unsuccessful requests to increase budgets for departments that work on street improvement projects, fire relief efforts and preparing for the 2028 Games preparation have led to delays getting capital projects over the finish line.