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4w ago

Bay Area Transit Loan in Limbo as Newsom Team Targets Fall Deal

The governor’s office says negotiations continue on a $750 million bridge loan that transit leaders say is needed to avert service cuts before longer-term funding arrives.

A coalition of groups representing public transit riders and workers gather outside of the State Office Complex for a rally to demand state funding for Bay Area transit in San Francisco on Monday.
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Mayor Daniel Lurie speaks at a rally on transit funding at Civic Center Plaza on Sept. 8, 2025. Photo by Kelly Waldron.
Coalition groups representing public transit riders and workers brought miniature models of iconic Bay Area transport to a rally urging the state to provide a $750 million emergency loan for Bay Area transit at Civic Center Plaza in San Francisco on Monday.

Overview

  • California’s Department of Finance told lawmakers it would not finalize loan terms before adjournment, leaving a $750 million stopgap for BART, Muni and others unresolved.
  • Transit agencies warn of steep reductions without the bridge funding, with estimates that Muni could cut frequency by about 50% and BART could reduce service by 65–85%, including earlier nightly shutdowns and hourly trains.
  • Riders, unions and elected officials rallied in San Francisco on Monday as Mayor Daniel Lurie said he has been in hourly talks with the governor’s office and expects stakeholder meetings this week.
  • Gov. Gavin Newsom’s office issued a statement saying it is working with stakeholders on a funding deal with the shared goal of agreeing on terms by this fall, while Sen. Scott Wiener said the loan is "on life support."
  • Separately, SB 63 advanced with an Assembly Transportation Committee vote, moving a 2026 regional transit sales-tax measure toward the floor while noting those revenues would not begin until 2027.