THE ECONOMIC IMPACT OF THE LA METRO SEPULVEDA TRANSIT CORRIDOR

Download

Version
Download 113
File Size 2.34 MB
File Count 1
Create Date January 14, 2026
Last Updated January 14, 2026

The Sepulveda Transit Corridor (STC) Project is a major transportation investment led by the Los Angeles County Metropolitan Transportation Authority (Metro) to address severe congestion between the San Fernando Valley and the Westside, with a future extension to Los Angeles International Airport (LAX). Travel between the Valley and the Westside is constrained by the Santa Monica Mountains, making Interstate 405 one of the most congested corridors in the nation, with more than 400,000 daily trips and substantial travel delays. The proposed high-capacity rail line would provide a fast and reliable alternative to driving, improve access to major destinations such as UCLA, Westwood, and Century City, and strengthen regional connectivity through links to multiple Metro rail lines and regional transit services.

Metro released the Draft Environmental Impact Report (DEIR) for the STC Project in June 2025, evaluating five project alternatives with varying technologies, alignments, and station locations. These include monorail and heavy-rail options, ranging from primarily aerial to fully underground configurations. Alternative 6, a fully underground heavy-rail line, is identified as the Proposed Project for the purposes of the DEIR, although any alternative may ultimately be selected as the Locally Preferred Alternative. Demand for travel in the corridor is projected to grow significantly through 2057, highlighting the importance of the STC Project in improving mobility, supporting economic development, and enhancing long-term system resiliency.

Across the five STC alternatives, projected daily ridership ranges from approximately 62,000 to 124,000 boardings, with Valley-Westside travel times reduced to 18 to 33 minutes, substantially faster and more reliable than current automobile travel. The project is also expected to attract 20,000 to 42,000 new daily transit riders and reduce vehicle miles traveled by an estimated 342,000 to 775,000 miles per day, contributing to reduced emissions, improved air quality, and enhanced public health.

The STC Project is primarily funded through Measure M, which allocates $9.5 billion (2015 dollars) for the corridor, including a future extension to LAX. Because total project costs are expected to exceed this allocation, Metro anticipates pursuing additional funding sources, including federal grants and other partnerships.

The LAEDC Institute for Applied Economics is commissioned to conduct an economic impact study of the STC Project, estimating the economic activity generated by the construction and long-term operation of each alternative, as well as visitor spending associated with transit ridership. The analysis evaluates impacts at both the City of Los Angeles and Los Angeles County levels, highlighting the project’s potential to support jobs, income, business activity, and public revenues over both the short and long term.