OCTA Approves $2 Billion Budget for FY 2026-27, Prioritizing Transit Investments

The Orange County Transportation Authority (OCTA) board has approved a balanced budget of approximately $2 billion for fiscal year 2026-27, continuing investments in transit, highways, local roads, and mobility projects while emphasizing fiscal stability amid ongoing economic uncertainty.

The spending plan, which takes effect July 1, allocates funding across all transportation modes and supports projects funded through Measure M, Orange County’s half-cent sales tax for transportation improvements.

Transit remains the agency’s largest investment category, accounting for 52% of the budget. Funding will support OC Bus operations, Metrolink commuter rail service, local rail operations, and transit programs funded through Measure M. Freeway-related investments represent 25% of the budget, while street and road projects account for 8%.

“At OCTA, we are focused on making strategic investments that improve the way people move today while preparing Orange County for the future,” said OCTA Chair Jamey M. Federico. “This balanced budget demonstrates our commitment to responsible stewardship of taxpayer dollars while continuing to enhance transit service, improve our roads and freeways, and deliver on the promises made to Orange County voters.”

Transit Remains Largest Budget Priority for OCTA

Of the agency’s total budget, 34% is dedicated to bus operations and services, 13% to regional rail service, 2% to local rail, and 2% to Measure M transit programs. Additional funding supports the operation of the 91 Express Lanes and 405 Express Lanes, freeway improvement projects, and local street and road enhancements.

Key priorities for the coming fiscal year include maintaining and improving transit service, advancing freeway and roadway projects, supporting regional transportation partnerships, and ensuring the continued operation of Orange County’s express lane network.

Public Transit’s Focus on Financial Stability

The approved budget reflects a trend among transportation agencies seeking to maintain balanced spending plans while navigating uncertain economic conditions and closely monitoring revenue streams. OCTA officials said the agency will continue to “prudently manage” reserves and resources while tracking sales tax and other revenues that support transportation investments.

The agency noted that careful financial planning remains a central component of its strategy as it continues delivering transportation projects and services throughout Orange County.

The FY 2026-27 budget encompasses all transportation services, capital projects, and programs approved by the OCTA board and administered by the agency. According to OCTA, the spending plan positions the agency to continue investing in mobility improvements while maintaining long-term financial stability.