{"id":199425,"date":"2026-02-23T12:52:05","date_gmt":"2026-02-23T20:52:05","guid":{"rendered":"https:\/\/new.thepinetree.net\/?p=199425"},"modified":"2026-02-23T12:53:15","modified_gmt":"2026-02-23T20:53:15","slug":"governor-newsom-signs-legislation-authorizing-590-million-emergency-loan-to-bay-area-transit","status":"publish","type":"post","link":"https:\/\/new.thepinetree.net\/?p=199425","title":{"rendered":"Governor Newsom Signs Legislation Authorizing $590 million Emergency BART Loan"},"content":{"rendered":"
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Colma, CA…Governor Gavin Newsom, alongside state and community leaders, today signed AB\/SB 117, authorizing the California State Transportation Agency (CalSTA) to loan $590 million to the Metropolitan Transportation Commission (MTC) from the Transit and Intercity Rail Capital Program (TIRCP). The Bay Area Transit Loans measure will support and stabilize Bay Area transit services as the region continues emerging from the impacts of the pandemic and ridership continues to rebound.<\/p>\n<\/div>\n

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California is stepping up to support Bay Area transit\u2014this agreement will help protect transit service for more than three million monthly riders. The benefits of a strong transit system are clear: growing ridership, cleaner air, and less congested roads. I\u2019m proud of the progress the Bay Area transit service and operators are making on ridership recovery, and this loan will continue to build on that success as the region works together on long-term funding solutions.<\/p>\n

Governor Gavin Newsom<\/small><\/p>\n<\/div>\n<\/div>\n

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\u201cOur public transit connects people to jobs, schools, healthcare and opportunity,\u201d\u00a0said\u00a0California Transportation Secretary Toks Omishakin.<\/strong>\u00a0\u201cThis $590 million emergency loan helps ensure Bay Area communities continue to have reliable service as ridership returns and the region works towards a long-term funding solution. \u201cWe\u2019re committed to keeping transit strong for the riders that depend on it every day.\u201d<\/p>\n

\u201cTransit is essential for the Bay Area\u2019s future, and we must protect it and do everything in our power to avert devastating service cuts,\u201d\u00a0said State Senator Scott Wiener.<\/strong>\u00a0\u201cThis loan will avert a traffic catastrophe and save millions of Bay Area transit riders from losing their ride to work, family, and school. We spent much of the past year negotiating this loan with regional stakeholders and the Governor, and I\u2019m immensely proud that we got it over the finish line. This is the latest in a yearslong effort to shore up funding for our transit systems and make them even cleaner, safer, and more reliable than ever. While there is more work to do, today\u2019s announcement is a major win for securing a bright future for Bay Area public transit and the millions who rely on it every day.\u201d<\/p>\n

\u201cThis is a major victory for our region\u2019s transit operators, workers, and the communities that depend on public transit to get to work and school,\u201d\u00a0said\u00a0State Senator Jesse Arregu\u00edn.<\/strong>\u00a0\u201cI want to thank the Governor, my colleagues in the Legislature, and the many advocates who supported this effort to ensure the Bay Area can continue to be an economic engine to the state, while also advancing our efforts to fight climate change.\u201d<\/p>\n

\u201cAs Chair of the Bay Area Caucus, I know how important this funding is, and I\u2019m grateful for all my colleagues who helped with this agreement,\u201d\u00a0said State Senator\u00a0Josh Becker.<\/strong>\u00a0\u201cI\u2019ve long pushed to improve our transit in the Bay Area and move toward a seamless system and have seen much progress recently. Caltrain ridership is up 50 percent since electrification, BART has seen record high scores for safety, cleanliness, timeliness, and overall satisfaction, and more across our system. Public transit is a public good that so many rely on, and this funding will help us continue to make improvements and bridge us to a bright transit future in the Bay Area.\u201d<\/p>\n

\u201cAs Chair of the Assembly Transportation Committee, I commend Governor Gavin Newsom for signing AB 117 into law today,\u201d\u00a0said Assemblywoman Lori D. Wilson<\/strong>. \u201cThis responsible and temporary measure demonstrates California\u2019s ongoing commitment to providing safe, reliable public transportation. BART, as well as MUNI, Caltrain, and AC Transit, are vital assets for the entire Bay Area, playing a key role in advancing our state\u2019s climate goals and reducing congestion on our roads and highways.\u201d<\/p>\n

\u201cSan Francisco\u2019s recovery is essential to the success of our region and our state\u2014and our city cannot continue its comeback without a safe, reliable transit system,\u201d\u00a0said San Francisco Mayor Daniel Lurie<\/strong>. \u201cWith the signing of this bridge loan, we are securing necessary resources to sustain our recovery and ensure transit systems can continue serving the families, seniors, students, and workers who rely on them every day. We\u2019re already delivering greater accountability and efficiency for Muni, and ridership is continuing to climb toward pre-pandemic levels. Thank you to Governor Newsom for your commitment to our city and region\u2019s recovery, and to our partners at MTC and in the state legislature who worked to deliver this critical support.\u201d<\/p>\n

\u201cThis bill is a big win for the Bay Area. It keeps the transit system running smoothly next year\u2014supporting more than 900,000 daily trips\u2014so people can keep getting to work, school, family, friends, and events without disruption,\u201d\u00a0said Metropolitan Transportation Commission Chair\u00a0Sue Noack.<\/strong>\u00a0\u201cAnd for those who don\u2019t take transit, it means we avoid a surge of cars on the road and all the congestion that would come with it.\u201d<\/p>\n

Ridership recovery and regional progress<\/h2>\n

Like transit systems across the country, BART, Muni, Caltrain, and AC Transit were hit hard by the pandemic\u2014but all four operators have made strong progress in rebuilding ridership in recent years.<\/p>\n

This emergency loan is structured as a bridge to support agencies while the region pursues a long-term funding solution through a potential November 2026 regional sales tax measure authorized through the enactment of\u00a0 Senate Bill\u00a0 63 (Wiener, 2025). If approved by voters, that measure would provide new operating funding beginning in July 2027. This financing will help cover operating deficits and advance a strong, reliable, and financially resilient transit system.<\/p>\n

Loan structure and accountability<\/h2>\n

MTC would use the loan proceeds to provide short-term operating loans to four Bay Area transit operators and repay the loan in quarterly installments to CalSTA over a period of 12 years, with interest-only payments during the first two years.<\/p>\n

Key provisions include:<\/strong><\/p>\n