The rail corridor runs by Twin Lakes State Beach near El Dorado Avenue. (Nik Altenberg — Santa Cruz Local file)

SANTA CRUZ >> Following an executive order from President Donald Trump, a major grant to fund the Coastal Rail Trail could be in limbo.

On Jan. 20, the Unleashing American Energy order instructed federal agencies to “immediately pause the disbursement of funds” from two Biden-era infrastructure bills until the spending is reviewed by the U.S. Office of Management and Budget. 

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Santa Cruz County Regional Transportation Commission staff said Jan. 31 that they were trying to determine whether the order could slow or stop a $19.5 million grant awarded in January for trail construction from Santa Cruz to Rio Del Mar. A formal funding agreement for the project has not yet been approved. 

The Jan. 20 order is separate from another executive order that mandated a widespread spending freeze, which has been temporarily blocked by a federal court. 

Sarah Christensen, executive director of the Santa Cruz County Regional Transportation Commission, said she had not received any word whether the money is endangered “We think that it’s a slight possibility” that “federal funds could be in jeopardy if they haven’t been authorized yet,” she said.

A representative from the Department of Transportation’s Federal Highway Administration was scheduled to speak at a Jan. 30 meeting of the California Transportation Commission, but did not attend. 

“The situation with the executive orders is evolving by the day,” Christensen said. “We don’t know how it’s going to play out.”

The $19.5 million grant awarded in January includes about:

  • $2.8 million for trail Segments 8 and 9 from Beach Street, Santa Cruz to 17th Avenue, Live Oak. The trail for these segments was estimated to cost $58.3 million in 2024, but staff are studying ways to cut costs. Updated estimates are expected in June.
  • $8.3 million for trail Segments 10 and 11 from 17th Avenue, Live Oak to State Park Drive, Aptos. The trail was estimated to cost $111.7 million in 2024. Updated estimates with potential cost-saving measures are expected in June.
  •  $8.3 million for trail Segment 12, from State Park Drive to Rio Del Mar Boulevard. The project, including part of the Highway 1 expansion, is estimated to cost $231.8 million.

Read Santa Cruz Local’s map of rail trail updates.

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Reporter / California Local News Fellow |  + posts

Jesse Kathan is a staff reporter for Santa Cruz Local through the California Local News Fellowship. They hold a master's degree in science communications from UC Santa Cruz.