San Luis Obispo County Infrastructure Projects To Get $2.25 Million in Federal Funding

Two infrastructure projects in San Luis Obispo County are set to receive federal funding secured by U.S. Representative Salud Carbajal.

Carbajal announced on March 9, 2026, that he secured funding for projects to improve the Shell Beach Road shared-use path and the City of Morro Bay’s stormwater system.

The federal investments will boost the safety and quality of life for residents of the county, Carbajal said in a statement. 

“Extending the Shell Beach shared use path will give residents and visitors a safer, more accessible way to move along our coastline, while Morro Bay’s storm drain upgrades will help protect homes and businesses from the kind of devastating flooding we’ve seen in recent years,” he said.

The funding was secured through the Community Project Funding initiative, which was launched in 2022. 

Carbajal had championed the funding during last year’s federal budget negotiations, and it was signed into law as part of the annual government appropriations process, according to Carbajal’s office. 

In spring 2025, he began to push for funding for the projects through formal requests to the House Appropriations Committee for Fiscal Year 2026.

Carbajal requested about $4.17 million for the Shell Beach Road project and $2 million for the storm drain improvements, according to the funding requests. He submitted requests for 15 community projects for fiscal year 2026.

Shell Beach Road Extension 

The San Luis Obispo Council of Governments (SLOCOG) will receive $2 million to extend the shared use path two miles north to the intersection of Shell Beach Road and Avila Beach Drive, according to Carbajal’s office.

The extension is projected to improve safety for bicyclists and pedestrians, upgrade local and regional mobility, and increase access to retail and commercial services, coastal access points, and trails along the corridor. 

The multimodal pathway will be a key regional connection through one of the most congested neighborhoods in San Luis Obispo County, said SLOCOG Executive Director Pete Rodgers. 

The pathway will also provide connectivity to the new roundabout on the Avila Beach Drive and Highway 101 intersection near the Bob Jones pathway to points south in Pismo Beach and beyond in South County, Rodgers added. 

Storm Drain Upgrades

The City of Morro Bay will receive $250,000 to repair and upgrade storm drains, improve resilience against floods by rerouting lines, and build new drains, according to the statement. 

Heavy flooding hit the Main Street business and residential corridor on January 9, 2023, and March 10, 2023. During those storms, the city’s storm drain system failed to clear water from the flood zone and surrounding areas.

“This funding is vital for maintaining and improving our storm drainage system, which is essential to protecting our community from flooding and ensuring the safety of our residents,” said Morro Bay Mayor Carla Wixom. 

Thanking Carbajal for securing the investment, Wixom added that the funding will strengthen the city’s resilience against future floods.