Rep. Panetta Highlights Significant Federal Funding Secured for Capitola Traffic Safety Improvements Along Bay Avenue Corridor

Capitola, CA - United States Representative Jimmy Panetta (CA-19) joined Capitola city officials for a tour of intersections along Bay Avenue where the city is planning improvements to protect pedestrians, cyclists, and drivers. Rep. Panetta secured $250,000 in federal funding for the Capitola Traffic Safety Project through the U.S. Department of Housing and Urban Development in the Fiscal Year 2026 appropriations process.

During the tour, city officials highlighted long-standing congestion and collision concerns at several locations along Bay Avenue. The federal funding will support improvements at the intersection of Bay Avenue and Center Street, where the city is planning an enhanced pedestrian crossing with safety features that could include improved curb extensions and a pedestrian refuge median. In addition, plans include improved lighting at other intersections along Bay Avenue. The project is part of a broader effort to improve safety and traffic flow at three key intersections throughout Capitola.

"In Capitola, people love to walk, bike, and drive around town. However, there have been accidents along Bay Avenue which demonstrate that we can improve safety for pedestrians, riders, and drivers," said Rep. Panetta. "I'm proud to have secured a $250,000 federal investment to help Capitola with an enhanced pedestrian crossing and other critical upgrades that will put protections in place for people in and out of their cars. I'll continue making sure that Congress's power of the purse is felt right here in the 19th Congressional District to help make communities like Capitola safer."

"We're incredibly grateful to Congressman Panetta for securing this funding to help improve pedestrian safety along the Bay Avenue corridor," said Capitola Mayor Margaux Morgan. "This investment will help the City make it safer and easier for people of all ages to walk through one of our community's most important transportation corridors."

The Bay Avenue corridor has repeatedly experienced collisions involving pedestrians and cyclists. A serious collision involving a pedestrian in summer 2025 marked at least the sixth incident in which a pedestrian had been injured or killed in the area since 2017. In 2023, Capitola resident Debra Towne was tragically killed in a hit-and-run while walking near the crosswalk at Crossroads Loop and Bay Avenue.

The funding announced today is what Rep. Panetta worked for to be included in the most recent appropriations package. Rep. Panetta secured over $5.9 million in community project funding for local projects across Santa Cruz County, and a total of over $15 million to fund 14 local projects in California's 19th Congressional District.

Additional photos of the tour are available here.

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