Santa Cruz rail project carries $4.3B price tag and big expectations

Santa Cruz County is edging closer to a once-theoretical vision: a passenger rail system stretching 22 miles from Santa Cruz to Pajaro. A new report from the Santa Cruz County Regional Transportation Commission puts the construction price at $4.3 billion, with annual operating costs between $31 million and $41 million. While the report lays out ridership estimates and infrastructure plans, its financial and logistical demands continue to draw scrutiny.

Background on the Zero Emission Rail and Trail plan

At the heart of the proposal is the Zero Emission Passenger Rail and Trail Project. It pairs a battery-powered train line with a 32-mile bike and pedestrian path. The 22-mile rail portion would run from downtown Santa Cruz to Pajaro Station in Monterey County, a key connection point to Caltrain and Amtrak.

The project has been under study for more than a decade. In 2022, voters passed Measure D, endorsing long-term rail development. Since then, the commission has launched multiple feasibility and environmental assessments. The latest report outlines a system with 22 new train stops and modern Stadler FLIRT vehicles that operate with zero tailpipe emissions.

Financial roadmap

Of the $4.3 billion estimate, nearly $1 billion would go toward repairing or replacing 28 of 33 rail bridges along the route. Additional costs include track rehabilitation, stations, electrical systems, and vehicles.

Planners expect up to 80% of funding to come from federal sources. The remainder would rely on state grants and local revenue. But most of Santa Cruz County’s Measure D funds are already committed to other infrastructure, raising questions about how the local match will be raised. New taxes or future bond measures could be required.

What the new rail system promises

If built, the system would serve 3,500 to 6,000 riders per weekday. Travel between Santa Cruz and Pajaro is projected at 45 minutes, faster than most bus alternatives.

Trains would operate every 30 minutes during peak hours and hourly during off-peak. The proposed vehicles, manufactured by Stadler, are battery-electric, quiet, and accessible. Integration with Caltrain would allow seamless trips into Silicon Valley.

Public sentiment is divided. While the 2022 Measure D vote showed support for rail planning, more recent discussions have surfaced concerns about feasibility and cost. Some residents question whether the money could be better spent on other transit improvements, such as electric buses or road safety projects.

Others argue that the train offers a rare opportunity to commit to long-term climate goals and provide affordable alternatives to car travel for lower-income residents. The project is increasingly seen as a test of the county’s transportation priorities.

The transportation commission plans to vote on the draft report in August 2025. A formal environmental review and applications for federal funding would follow. If successful, construction could begin by 2032.

Sources:

• Santa Cruz Local – Report projects $4.3 billion for passenger rail