The San Francisco Municipal Transportation Agency (SFMTA) in California, US, has approved the financial plan for the Central Subway in San Francisco, which involves the extension of the Muni Metro light rail system.
This is the second phase of the SFMTA's Third Street light-rail project.
The approval is a crucial step in submitting the plan in February to the Federal Transit Administration (FTA).
The SFMTA received $137m in federal, state and local government funding towards the project and plans to secure $942.2m from the FTA.
The total project cost is expected to be $1.57bn, with the federal government contributing close to $1bn.
When the Central Subway service begins, the 1.7-mile extension of the existing T Third rail line will connect communities from Visitacion Valley to Chinatown with a convenient light rail service, which will decrease transit travel times and relieve congestion.
The Central Subway has received $72m in New Starts federal funding to date.
The FTA granted approval to begin the final design in January 2010 and construction to relocate utilities under 4th street also began in January 2010.
SFMTA oversees all surface transportation in San Francisco including the Municipal Railway.