Tempe Streetcar

Federal Transit Administration provides additional funding for Tempe Streetcar

On June 11, the Federal Transit Administration (FTA) announced a $17.4 million funding allocation for Tempe Streetcar from the American Rescue Plan. This amount is in addition to $75 million in CIG funds the project received in September 2019. In a release about the funding, U.S. Transportation Secretary Pete Buttigieg said, “Public transit opens new opportunities for people, and delivers environmental and economic benefits to communities. We are delighted to provide support for these projects, which will help communities recover from the pandemic and bring public transit to more people in the months and years to come."

Tempe Streetcar Vehicle Testing and Pre-Operations 

Six month vehicle testing and pre-operations outlook

Vehicle Delivery: The first and second streetcars has been delivered to the Valley Metro Operations and Maintenance Center. The next streetcar delivery is anticipated in Summer 2021. 

System Testing: Vehicle testing has begun on the existing light rail track. The streetcar is anticipated to begin testing on streetcar track in mid-June. 

Tempe is already one of the highest public transit ridership centers in the region and Tempe Streetcar will add another efficient transportation option. 

The project received a Finding of No Significant Impact (FONSI) from the Federal Transit Administration (FTA) in October 2015, which indicates that the project will have no significant environmental effect on the neighboring communities. The FONSI comes following the project’s Environmental Assessment (EA), which evaluates the potential impacts to the neighboring environment, including noise and vibration, traffic and parking, and historical and archaeological resources.

Streetcar Reaches Significant Milestone

On November 28, 2018, the Federal Transit Administration (FTA) announced that Tempe Streetcar has been allocated the full $75 million through the Federal Transit Administration (FTA) Capital Investment Grants (CIG). The project was allocated $50 million from the FTA in 2017 and with the approval of the final $25 million installment, it allows the project to move toward a fully funded grant.

“Tempe Streetcar is essential to our growing city,” said Tempe Mayor Mark Mitchell. “Today’s announcement shows we have a strong project with federal, community and regional support.” 

The competitive CIG Program provides funding for major transit infrastructure capital investments nationwide. Projects accepted into the program must go through a multi-year, multi-step process for funding consideration. 

In August 2018, Valley Metro received approval from the Federal Transit Administration (FTA) to begin the initial phase of significant construction on the Tempe Streetcar. With this approval, Valley Metro began work in fall 2018 to build the system’s rail trackway, power systems and street improvements. 

“This milestone would not have been possible without the support of our federal delegation and officials at FTA, for which we are grateful. With this approval, we can now move forward to keep this project on budget and on schedule,” said Tempe Mayor Mark Mitchell. “Many, including advocates in the local business community, have been working tirelessly to see this project come to fruition for the betterment of our community’s quality of life and economic sustainability.”

“The Tempe community has a long history of supporting public transit and is already one of the highest public transit ridership centers in the region,” said Robin Arredondo Savage, Tempe City Councilmember and Vice Chair of the Valley Metro Rail Board. “Streetcar will be a critical link in our total transit network, connecting strong neighborhoods, major business centers and regional events and destinations – supporting growing travel demand and business interest in Tempe and throughout the region.”

“This positive step demonstrates FTA’s favorable view of this project,” said Valley Metro CEO Scott Smith. “We look forward to working with FTA to receive our final grant agreement in the next few months. This project is unique because it is being built with a combination of local, regional and federal funds, and with $13 million in voluntary contributions from local property owners along the streetcar route.”  

On September 24, 2019, the Federal Transit Administration (FTA) signed the $75 million Capital Investment (New Starts/Small Starts) grant agreement, indicating its continuing investment in the valley's regional transit network.

Tempe Streetcar is on track to be operational in 2021. 

Shop local and save. 

The Shop On rewards program offers customers exclusive deals when you visit participating businesses along the Tempe Streetcar line. Get great deals on everything from coffee to carry-out, designer clothes to decadent dishes when you download the Shop On card!

Check out the businesses on our interactive map, and download the Shop On card here.

Click here to view tips for navigating the streetcar safety as a bicyclist, pedestrian, and motorist!