California State Governor, Gavin Newsom, is committed to provide much needed stability to the Bay Area’s transit systems
Gov. Gavin Newsom has signed legislation authorizing a $590 million emergency loan to stabilize Bay Area transit systems, including Bay Area Rapid Transit (BART), San Francisco Bay Area Municipal Transportation Commission (MTC), Caltrain and Alameda-Contra Costa Transit District (AC) Transit.
The measure allows the California State Transportation Agency to loan funds to the Metropolitan Transportation Commission to help cover operating deficits as agencies continue recovering from steep pandemic-related ridership losses.
“California is stepping up to support Bay Area transit. This agreement will help protect transit service for more than three million monthly riders,” Newsom said. He added that growing ridership, cleaner air and less congestion demonstrate “the benefits of a strong transit system.”
State Transportation Secretary Toks Omishakin called the loan an emergency bridge to maintain reliable service while the region works toward a long-term funding fix.
“This $590 million emergency loan helps ensure Bay Area communities continue to have reliable service as ridership returns,” he said.
State Sen. Scott Wiener (D-San Francisco) said the funding would “avert a traffic catastrophe” and prevent devastating service cuts, describing the agreement as “a major win for securing a bright future for Bay Area public transit.”
Sen. Jesse Arreguín (D-Berkeley) called it “a major victory for our region’s transit operators, workers, and the communities that depend on public transit.”
According to regional leaders, Bay Area commuters take 900,000 daily trips on the transit network.
MTC Chair Sue Noack said the loan “keeps the transit system running smoothly next year,” helping commuters avoid increased congestion.
The loan is structured as a temporary bridge while the region pursues a potential November 2026 ballot measure that would generate new operating funds starting in 2027. Under the agreement, MTC will repay the loan to the state over 12 years, with interest-only payments during the first two years. Repayment will be backed by State Transit Assistance revenues.
The legislation also directs state officials to ensure existing capital projects are not disrupted and requires monitoring of regional transportation funds.
Officials say the emergency financing is designed to stabilize service now while laying groundwork for a more financially resilient transit system in the years ahead.
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Bo Tefu, California Black Media, contributed to this report.
