Encinitas secured $33.6 million in federal funding for three railroad corridor projects that will add new track crossings, build a pedestrian tunnel and silence train horns along a stretch of downtown, City Manager Jennifer Campbell announced at the Thursday, Aug. 20, City Council meeting.

The grant, from the Federal Railroad Administration's Federal-State Partnership for Intercity Passenger Rail Program, covers 80% of the estimated $42 million total cost. Encinitas must provide a 20% local match of roughly $8.4 million. North County Pipeline described the award as preliminary; the city has not specified what steps remain before a formal grant agreement is executed.

"When you look at return on investment, we spent $77,000 (on consulting work to obtain the grant money) … and that yielded $33.6 million," Campbell told the council, according to the San Diego Union-Tribune. "I've never really seen a return on investment that large."

The three projects span the city's roughly six-mile rail corridor between Cardiff and Leucadia.

Verdi Avenue pedestrian tunnel

The largest piece is an underground crossing at Verdi Avenue in Cardiff connecting residents to San Elijo State Beach. The San Diego Union-Tribune reported the estimated cost at $16 million; city records cited by North County Pipeline put the figure between $17 million and $18 million.

The city first identified the location in 2008. Final design is complete, and the next step is California Public Utilities Commission approval. Campbell said staff "definitely feel we will get (that approval) in time" to meet federal grant spending deadlines.

Two other undercrossings, at Santa Fe Drive and El Portal Street, were completed in 2013 and 2022.

Leucadia at-grade crossings

Two new pedestrian crossings at Grandview Street and Phoebe Street would fill a 1.3-mile gap in Leucadia between La Costa Avenue and Leucadia Boulevard where no legal crossing currently exists. Estimated cost: $6 million.

Design work is approximately 70% complete. The CPUC issued a preliminary ruling in January 2026 approving the crossings, and the city's May 2026 project schedule targets final design and permitting by December 2026, with construction beginning six months after funding is fully secured.

The City Council approved $300,000 in design funding for the crossings during the April 2026 budget process. Community opinion has been divided, according to Union-Tribune reporting on the April budget discussions: longtime advocates say the crossings are overdue, while opponents have raised concerns about increased train horn noise from adding new crossing points.

That concern ties directly to the third project.

Quiet zone: E Street to Leucadia Boulevard

The $13.4 million quiet zone would eliminate mandatory train horns at existing crossings at E Street, D Street and Leucadia Boulevard. Approximately 50 passenger trains and four freight trains pass through Encinitas each weekday.

The city is coordinating with the CPUC and FRA to obtain waivers for a new warning system similar to one used in San Clemente. Once installed, trains would no longer sound horns between E Street and Leucadia Boulevard. Permitting and design completion are both targeted for late 2026, according to a city community meeting presentation from January 2026.

This would be Encinitas's second quiet zone. The first was established near Chesterfield Drive in Cardiff as part of the San Elijo Lagoon Double Track project.

What comes next

Councilman Jim O'Hara praised the award, saying he was thrilled for residents and cited the grant's public safety impact in an Aug. 18 North County Pipeline report.

The City Council approved submitting applications for all three projects in October 2025. The city plans to connect the two new Leucadia crossings to pathways and bike routes in the Leucadia Streetscape project on Coast Highway 101.

Residents can track project updates at encinitasca.gov/government/city-projects-initiatives.