Phoenix Council Cancels Capitol Light-Rail; Halts Federal Grants

Phoenix City Council cancels Capitol light-rail extension, halting federal grants. Transit resources redirect to Indian School Road, with two transit options under review.

Phoenix Council Cancels Capitol Light-Rail; Halts Federal Grants
February 10, 2026 1:31 pm | Last Update: February 10, 2026 1:34 pm
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📉 Market Brief:
  • Event: Phoenix City Council cancels Capitol light-rail, prioritizes new corridor.
  • Key Data: All development and federal grant processes for Capitol Extension halted.
  • Impact: Public transit agency must redirect planning resources to Indian School Road.

A Phoenix City Council vote has re-evaluated public transit expansion plans for the western part of the city, resulting in the termination of the proposed light-rail extension to the Arizona State Capitol. Municipal resources will now be directed toward developing a new transit route along the Indian School Road corridor. The decision effectively realigns the city’s capital project pipeline for public transportation.

The city’s transit agency has been formally instructed to halt all development work on the Capitol Extension (CapEx) project. This directive includes the immediate cessation of the federal grant funding application process, which was a critical component of the project’s financial plan. The suspension of this process removes the project from near-term federal infrastructure funding consideration.

With the CapEx project canceled, the transit agency’s new priority is the Indian School Road corridor. The initial phase of this new undertaking involves gathering input from area stakeholders and residents. This consultation process will inform the selection of the transit modality for the corridor.

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The choice of transit technology for Indian School Road has not been made. Planners will consider two primary options: a light-rail line or a bus-based system. According to verification data, specific technical details, engineering specifications, project timelines, and cost estimates for the new transit route are currently under review and have not been finalized.

The canceled CapEx line was designed to connect the downtown Phoenix core with the government complex at the Arizona State Capitol. The project’s removal from the transit master plan signals a strategic shift in how the city intends to serve west Phoenix communities and major employment centers.

The transit agency must now begin the preliminary scoping and public outreach for the Indian School Road project. The outcomes of these early-stage activities will determine the technical and financial requirements for the new priority corridor.