Menlo Park Struggles to Fund Costly Rail Crossing Project

Estimated costs for an underground pedestrian and bike crossing have nearly doubled, leaving the city scrambling to secure additional funding.

Published on Feb. 4, 2026

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After the estimated cost to build an underground pedestrian and bike crossing under Caltrain tracks near Middle Avenue in Menlo Park ballooned from $23-35 million to over $60 million, city officials are now grappling with how to pay for the project or whether to cancel it altogether. The city has already spent $6.5 million on the project, including $4 million to acquire land, and has secured $22.8 million in funding from various sources, but is still facing an estimated shortfall of $38-43 million.

Why it matters

This project has been in the works for over 10 years and is seen as vital infrastructure to support major new development projects in the area, like the Parkline mixed-use development. However, the significant cost increase has put the future of the crossing in jeopardy, raising questions about the city's ability to fund important transportation projects.

The details

The Menlo Park City Council was presented with three options: prepare plans to get the project 'shovel ready' and seek additional grant funding, proceed with phasing the project while seeking more funding, or cancel it altogether. Following the recommendation of Caltrain and city staff, the council decided to prepare the plans further while searching for more funding sources. However, some council members expressed skepticism about the prospects of securing additional funds given current federal and state budget constraints.

  • The project's preliminary cost estimate was $23-35 million.
  • The current cost estimate has jumped to over $60 million.
  • The city has spent $6.5 million on the project so far, including $4 million to acquire land.
  • The city has secured $22.8 million in funding from various sources, but is still facing an estimated shortfall of $38-43 million.
  • The city council directed staff to come back with a contract amendment to spend an estimated $7.4 million to get the project to the 90% planning phase.

The players

Menlo Park City Council

The governing body of the city of Menlo Park, California, which is responsible for making decisions about the future of the rail crossing project.

Caltrain

The commuter rail system that operates the tracks that the proposed crossing would go under.

Parkline

An approved mixed-use development project at SRI International's headquarters across from Burgess Park, which is expected to rely heavily on the proposed rail crossing.

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What they’re saying

“I'm worried about the feeling that the money will be there and it will be freed up because I don't feel like that's the environment that we're in over the next few years.”

— Jeff Schmidt, Councilmember (almanacnews.com)

“Parkline specifically has a lot of their development built around biking in mind and this project specifically. I think that this will be heavily used and really worthwhile for all ages if we can get the funding and get it through.”

— Betsy Nash, Mayor (almanacnews.com)

What’s next

The Menlo Park City Council is expected to consider a contract amendment to spend an estimated $7.4 million to get the project to the 90% planning phase within the next few weeks.

The takeaway

This project highlights the challenges cities face in funding critical infrastructure projects, especially when costs balloon unexpectedly. Menlo Park must now weigh the value of the crossing against the significant financial burden it would place on the city, underscoring the difficult tradeoffs local governments often have to make.