1-4-2017

LOS ANGELES – The U.S. Department of Transportation (DOT) today announced approximately $1.6 billion in federal grant funds and a loan agreement toward the Westside Purple Line Extension Section 2 Project, continuing vital federal support for expanding subway service farther west in one of the Los Angeles area’s busiest corridors.

"The Obama Administration is making an important investment in the future of the Los Angeles region," said U.S. Transportation Secretary Foxx. "Thanks to a strong local vision and federal support, Los Angeles will continue its transformation from the nation’s car capital to one that embraces sustainable, multimodal solutions that increase access to opportunity."

The 2.6-mile extension through the cities of Beverly Hills and Century City will greatly improve transit access to jobs, educational centers, and other opportunities in West Los Angeles and throughout the region. U.S. Transportation Secretary Anthony Foxx and Federal Transit Administration (FTA) Acting Administrator Carolyn Flowers joined local officials in Los Angeles for a ceremonial signing of the funding agreements.

DOT is providing approximately $1.6 billion to the Los Angeles County Metropolitan Transportation Authority (LACMTA) for the second phase of the Westside Purple Line Extension. Federal funds include a construction grant agreement for $1.187 billion through FTA’s Capital Investment Grant (CIG) program, a loan agreement for up to $307 million through DOT’s Transportation Infrastructure Finance and Innovation Act (TIFIA) program, and $169 million through the Congestion Mitigation and Air Quality program.

"FTA is awarding highly competitive grant funds for this project because, as Los Angeles residents and visitors well know, there is a clear need for alternatives to traffic-congested corridors like Wilshire Boulevard," said FTA Acting Administrator Carolyn Flowers. "The Purple Line extension will offer Angelenos better options for getting to and from their jobs, classrooms, and all that the area has to offer."

Section 2 of the project will bring rapid underground rail transit to more areas along Wilshire Boulevard between Downtown Los Angeles and Century City, a corridor which currently experiences both extensive traffic congestion and high demand for increased transit capacity.

This phase of the Purple Line extension will add two new stations at Wilshire/Rodeo and Century City/Constellation, serving the popular residential, employment, and commercial centers of Beverly Hills, the Golden Triangle, and Century City. The stations are expected to open in 2026 and account for over 36,000 daily trips by 2035.

The signing of the construction grant agreement with LACMTA means that FTA is committing $1.187 billion in funding through its CIG program toward the $2.5 billion total project cost. The federal funds will be provided over the course of 12 years on an annual payment schedule, subject to Congressional appropriations.

The first section of the Purple Line extension, which also received a construction grant agreement as well as a DOT TIFIA loan in 2014, is currently under construction between Wilshire/Western and Wilshire/La Cienega. The third and final section, which will bring the Purple Line to UCLA’s Westwood campus and the Veteran’s Administration Hospital, is currently in the local planning process.

The CIG Program is the nation’s primary grant program for funding major transit capital investments. Projects accepted into the program must go through a multi-year, multi-step process according to requirements in law in order to be eligible for and receive program funds. For more information about the program, please visit FTA’s CIG web site.

The TIFIA loan program is administered by the Build America Bureau, which was launched by Secretary Foxx earlier this year as a "one-stop shop" to help streamline credit and grant opportunities for communities as they work to fund infrastructure improvements. The Bureau also provides technical assistance and encourages innovative approaches to project planning, financing, delivery, and monitoring.

Since its inception, the Bureau has closed $4 billion in financings and supports nearly $9.1 billion in rail, highway and transit projects across the country. The Bureau has 16 projects in creditworthiness review for a total potential loan amount of over $5.5 billion. The Bureau also includes the Private Activity Bondsprogram, the Outreach and Project Development functions that originated under the Build America Transportation Investment Center, and the Fostering Advancements in Shipping and Transportation for the Long-term Achievement of National Efficiencies (FASTLANE) grant program.

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