LA poised to lose $100 million in state grants to fund transportation projects

LOS ANGELES - Los Angeles appears poised to lose in its attempt to keep $100 million in state grant funding for transportation projects in some of the neediest neighborhoods after a state commission declined to hear the city's appeal for an extension.

The state grants came with deadlines for work to be completed, which city officials have said they were unable to meet because of budget and staffing cuts in the city's engineering, transportation and other departments. City officials said they sought an extension, which the state transportation commission didn't consider at its meeting this month.

Mayor Karen Bass' office said the problem dates back to before her election in 2022.

"This issue is emblematic of the failed and broken systems that Mayor Bass inherited and is fixing with comprehensive solutions like her Capital Infrastructure Program (CIP)," her office said. "Once fully implemented, Mayor Bass' CIP will enable Los Angeles to properly plan, track, fund and deliver on multi-year projects like Active Transportation Projects with greater accountability, clarity, and purpose."

California Transportation Commission officials didn't immediately respond to requests for comment on the denial of the extension, which was reported earlier by LAist.

The grant money would have funded projects in Boyle Heights, the Skid Row area of downtown Los Angeles and Wilmington.

"Opportunities like this come once in a generation," said former City Councilmember Kevin De Leon, who helped secure the funding when he was on the council. "To lose that funding because deadlines were missed and shortage of staffing is nothing short of political malpractice."

State Assemblymember Mark González, D-Los Angeles, said he has been working with the state and the city in hopes of restoring the grant funding.

"Over the last couple of months, I have spent countless hours coordinating with the city and the CTC, fighting to find ways to let the City keep the money," he said in a statement on Thursday. "I have heard that the extension was not approved, and that's extremely frustrating. Without this extension, critical infrastructure will be even further delayed."

Gonzalez said he would try and see "if there is a path forward for the CTC to restore these funds."

City Councilmember Ysabel Jurado, whose district includes the Boyle Heights and Skid Row projects, said she also hopes to see funding restored for the projects.

"This decision is still new, and our office is taking the time to fully understand what it means for each project, the affected communities, and the options still available," Jurado said in a statement. "Boyle Heights and Skid Row have waited far too long for safer, more accessible streets, and the residents who organized for these improvements deserve more than a setback and a closed door."

The project in Boyle Heights would enhance bike lanes and pedestrian-level lighting and improve shading by planting more than 300 shade trees.

In Skid Row, the funding would have funded an effort to connect existing bike and pedestrian pathways through downtown L.A. to schools, health facilities and job centers.

The third project in Wilmington, near the Port of Los Angeles, would have fixed crumbling sidewalks and added high-visibility crosswalks. In a statement, Councilmember Tim McOsker said improving sidewalks and transportation infrastructure remains a priority.

"We will continue exploring funding opportunities and other available options to advance as much of the project as possible," he said in a statement.

The city's efforts to complete the projects were delayed by staffing shortages at key departments, including the Bureau of Engineering, the Bureau of Street Services and Department of Transportation, said Michael Schneider, founder and CEO of Streets for All, an advocacy group, "to the point where we can't really deliver many projects."

The departments recently faced budget cuts as the city attempted to close the gap of a $1 billion budget shortfall and avoid mass layoffs.

The program is a highly competitive process, and L.A. has a good track record of successfully winning the money, Schneider said.

The California Transportation Commission "is fed up, and you know what, I don't think I blame them," Schneider said. "They want the dollars to go to projects that will actually get built."

Estela Lopez, executive director for the L.A. Downtown Industrial District Business Improvement District, called the latest development "an embarrassment."

"What an embarrassment that we have to give money back, at a point where we don't have enough resources," said Lopez, who, along with other organizations, sent letters in support of the extension. "We're so broke that we can't even keep the gift of money that we're given."

Skid Row, she said, is a community that needs more than others following years of neglect and lacks the amenities of other L.A. communities.

"This would not have fixed all of that, but it would at least have given some hope that we're not as abandoned as a community as we feel we are," she said.

Copyright 2026 Tribune Content Agency. All Rights Reserved.

This story was originally published June 19, 2026 at 10:15 AM.