Cities Try New Approaches to Fund Streetcars

As federal transportation funding grows increasingly uncertain, cities across the country are trying new approaches to generate funds for their planned streetcar projects.

1 minute read

June 17, 2011, 11:00 AM PDT

By Nate Berg


Cities like Seattle, Tempe, and Salt Lake City are moving forward with their own funding mechanisms, according to this article from Urban Land.

"Seattle is using one of the more innovative approaches Lee explored. About half of the $52 million capital costs for the city's South Lake Union Line streetcar project will be provided by property owners adjacent to the system through a local improvement district (LID), with the remaining costs being borne by the federal, state, and local government. Private sponsorship opportunities for the line and stations will account for about 25 percent of operating expenses.

Other approaches are more traditional. In Arizona, the Tempe Streetcar's $163 million capital costs will be provided by a mix of regional tax revenue from an approved bond measure and a matching grant from the Federal Transit Administration's New Starts Program. The system's annual $3.1 million operating costs will be the responsibility of the city. Salt Lake City's $56 million Sugar House Streetcar line received a hefty grant from the U.S. Department of Transportation's TIGER II program that will cover 70 percent of the project's capital costs. Despite a $5 million commitment from area governments, however, the line still faces a shortfall in local funding."

Wednesday, June 8, 2011 in Urban Land

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Aerial view of downtown San Antonio, Texas at night with rotating Tower of the Americas in foreground.

San Antonio and Austin are Fusing Into one Massive Megaregion

The region spanning the two central Texas cities is growing fast, posing challenges for local infrastructure and water supplies.

July 3, 2025 - Governing

White park shuttles with large Zion logo on side and red rock cliffs in background in Zion National Park.

Since Zion's Shuttles Went Electric “The Smog is Gone”

Visitors to Zion National Park can enjoy the canyon via the nation’s first fully electric park shuttle system.

4 hours ago - Reasons to Be Cheerful

Chart of federal transportation funding comparing Biden and Trump administration spending.

Trump Distributing DOT Safety Funds at 1/10 Rate of Biden

Funds for Safe Streets and other transportation safety and equity programs are being held up by administrative reviews and conflicts with the Trump administration’s priorities.

5 hours ago - Transportation for America

Close-up on yellow and black TAXI sign on top of beige car in central Munich, Germany.

German Cities Subsidize Taxis for Women Amid Wave of Violence

Free or low-cost taxi rides can help women navigate cities more safely, but critics say the programs don't address the root causes of violence against women.

6 hours ago - Bloomberg