Description: We reviewed the progress of the California Department of Transportation (Caltrans), local road agencies, and transit operators in their use of American Recovery and Reinvestment Act (ARRA) funds in the months since the enactment of the federal stimulus programs and found that (1) Caltrans has made good progress in the use of almost $1 billion made available to the department, already putting out to bid contracts for 92 percent of the funds; (2) local road agencies have been slower to use their obligated ARRA transportation funds, with contracts for only one–third of their funds out to bid; and (3) the progress of transit system operators is unclear due to a lack of complete information. From the data we were able to compile, however, the operators appear to be making good progress. We recommend that the Legislature hold oversight hearings on the use of ARRA transportation funds to determine if any actions are necessary to ensure that California meets various ARRA deadlines.