Metro - File #: 2026-0524

• File #: 2026-0524
• Type: Policy
• Status: Agenda Ready
• File created: 7/14/2026
• In control: Planning and Programming Committee
• On agenda: 10/14/2026
• Title: ADOPT the Metro Toll Credit/Transportation Development Credit Program Guidelines for eligible Los Angeles County local highway and transit projects that are programmed in the Federal Transportation Improvement Program (Attachment A).
• Sponsors: Board of Directors - Regular Board Meeting
• Indexes: Call For Projects, Congestion Mitigation And Air Quality Improvement Program, Enhanced Mobility of Seniors and Individuals with Disabilities Program, Federal Highway Administration, Federal Transit Administration, Fixing America’s Surface Transportation Act, Grant Aid, Guidelines, Housing, Multi County Goods Movement Action Plan, Policy, Program, Safety, Section 5307, Southern California Association Of Governments, Tolls, Transfers, Transportation policy

Meeting_Body
PLANNING & PROGRAMMING COMMITTEE
OCTOBER 14, 2026

Subject
SUBJECT: ADOPTION OF TOLL CREDIT/TRANSPORTATION DEVELOPMENT CREDIT PROGRAM GUIDELINES

Action
ACTION: APPROVE RECOMMENDATION

Heading
RECOMMENDATION

Title
ADOPT the Metro Toll Credit/Transportation Development Credit Program Guidelines for eligible Los Angeles County local highway and transit projects that are programmed in the Federal Transportation Improvement Program (Attachment A).

Issue
ISSUE

Until this year, Caltrans directly managed California’s Toll Credits (TC), also referred to as Transportation Development Credits (TDC). TC/TDC allow local agencies to use federal transportation grants without contributing their own matching funds. Caltrans held the statewide balance of credits, approved each agency’s request to use them, and tracked how they were used. With the remaining balance running low, Caltrans adopted a new policy in March 2026 that caps each region’s use and transfers responsibility for managing credits to the regions. The Southern California Association of Governments (SCAG), the region’s Metropolitan Planning Organization (MPO), in turn assigned that responsibility to each county transportation commission. As a result, Metro is now responsible for managing up to $91.6 million in TC/TDC for Los Angeles County during Federal Fiscal Years (FFY) 2026 through 2028 (October 2025 through September 2028). This new role includes deciding which projects receive credits, reviewing agency requests before they go to SCAG, and tracking usage so that credits are not lost to other counties. Board adoption of the proposed guidelines establishes how Metro will carry out this new responsibility.

Background
BACKGROUND

Most federal transportation grants pay for only part of a project. The agency receiving the grant must cover the rest with its own non-federal funds (local match), typically 11.47 percent of the cost for federal highway programs and 20 percent for most federal t...