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California Transportation Commission Awards $325 Million to North Coast & North Bay for Major…

NORTH COAST— For the past decade, Senator Mike McGuire has been successfully fighting to secure funding for both Highway 37 in Marin and Sonoma counties and the Last Chance Grade on Highway 101 in Del Norte County.

Today, after years of partnership and advocacy, the California Transportation Commission (CTC) approved a major state investment to advance both transportation projects championed by Senator McGuire: $225 million to fully fund the design phase of the Last Chance Grade tunnel project in Del Norte County, making the project eligible for federal funding, and $100 million for critical improvements along the Highway 37 corridor in the North Bay.


$225 Million for Last Chance Grade

For decades, a 3-mile segment of Highway 101 just south of Crescent City has been in a losing battle with the elements—with some of the most geologically unstable soil on earth crumbling, sliding, and washing away during heavy winter storms. As the lifeline that connects Del Norte County to the rest of the state, this decades-long repair project is a critical economic investment for the North Coast.

With the CTC’s approval of $225 million to complete the design and right-of-way phase of the Last Chance Grade tunnel, the long-awaited permanent solution is finally moving forward. Once complete, the tunnel will replace the failing 3-mile stretch of Highway 101, providing a long-term solution to one of the North Coast’s most persistent transportation challenges.

“Today is a huge milestone for Del Norte County and the entire North Coast,” said Senator Mike McGuire. “With Caltrans now moving full steam ahead on the critical design phase, we’re seeing the light at the end of the tunnel! And this means that Last Chance Grade will now be shovel-ready for construction by 2031—huge news for all of us who call Northern California home. I’m grateful to Secretary of Transportation Toks Omishakin and Caltrans Director Dina El-Tawansy for listening to the needs of North Coast residents, and for the strong and consistent leadership of Congressman Jared Huffman and Caltrans North Coast Director Matt Brady who also helped get us to this momentous day.” 

$100 Million for Highway 37


The CTC also authorized $100 million to advance critical improvements along the Highway 37 corridor, a key North Bay route facing increasing threats from flooding and sea level rise, and major traffic congestion.

The immediate funding secured at the CTC today will address the painful bottleneck at the intersection of Highway 121 and convert shoulders into new vehicle lanes along a 10-mile one-lane stretch between Mare Island and Sears Point, likely shaving an hour from daily commutes. 

“Highway 37 is one of our most critical transportation corridors in the Bay Area. With flooding and gridlock already taking a toll on commuters and our regional economy, today’s $100 million investment will add vehicle lanes between Sonoma County and Vallejo, easing congestion during commute times, and raise critical portions of the corridor to prevent flooding,” said Senator McGuire. “This wouldn’t have happened without the steadfast partnership of Congressman Mike Thompson and county Boards of Supervisors from across the North Bay.”

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Mike McGuire is President pro Tempore Emeritus of the California Senate. He represents the North Coast of California, which stretches from the Golden Gate Bridge to the Oregon border, including Del Norte, Trinity, Humboldt, Lake, Mendocino, Sonoma, and Marin Counties. Website of Senator McGuire: https://sd02.senate.ca.gov/

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