A $7 million State Rail Assistance grant will make it possible for ACE to add a fifth commuter train between Lathrop/Manteca and San Jose.
The funding will help build the Agnew Siding in Santa Clara.
The siding will reduce delays for Capitol Corridor, Altamont Corridor Express (ACE), Amtrak Coast Starlight and freight trains and provide space to store trains for events at Levi's Stadium.
It also allows for a future introduction of a fifth ACE daily round trip.
The funding was part of $66.5 million in California State Transportation Agency grants awarded Thursday.
It comes as ACE is moving toward extending service into downtown Manteca, Ripon, Modesto and Ceres as well as to Sacramento with a current timetable of 2028.
Thursday’s largest award, $20 million, will help Metrolink avoid proposed cuts to nearly a third of its service and keep trains running for the Southern California riders who depend on them.
It will keep Southern California's regional rail network running ahead of the LA28 Olympic and Paralympic Games.
Another $10 million is going to Caltrain, including $6 million for signal, track and safety work and $4 million to support Caltrain's battery-electric train pilot between San Jose and Gilroy.
It builds on an $80 million state investment through the Transit and Intercity Rail Capital Program.
The remaining awards support safety, reliability and service improvements from the Capitol Corridor to the Central Coast and San Diego County.
Senate Bill 1, the Road Repair and Accountability Act of 2017, created State Rail Assistance program by dedicating a 0.5% sales tax on diesel fuel to California's commuter and intercity rail systems.
This round draws on SRA revenue available now and revenue expected to accrue through June 2030. Awards will be paid as funds become available.