Transit advocates called on Gov. Gavin Newsom early Monday morning to uphold his promise regarding a $750 million loan to Bay Area transit agencies, which was part of the state budget approved in June.
State Senator Scott Wiener announced on social media Sunday that the governor’s Department of Finance informed him the loan agreement will not be finalized before the state legislature concludes its session on Friday.
“We worked all summer to finalize this critical loan, Weiner posted on Bluesky. “It’s beyond disappointing that the Department of Finance has just pulled the plug.”
The loan to transit agencies will serve as bridge funding, allowing more time for Bay Area leaders to put a regional transit funding measure on the November 2026 ballot in Alameda, Contra Costa, San Mateo, San Francisco, and Santa Clara counties. San Francisco is also eyeing its own local transit funding measure by proposing a parcel tax.
There was promising news from San Francisco Mayor Daniel Lurie at the rally. Lurie said that since Thursday, he had been on the phone with Newsom’s office to reach an agreement. Lurie added that he will meet transit groups and the governor’s office either Wednesday or Thursday “to keep the momentum going.”
The governor’s office released the following statement on Monday regarding transit funding.
“We are working closely with all stakeholders on the parameters of a funding deal,” the statement read. “Our shared goal is to agree on the terms of a deal by this fall.”
The loan to transit agencies will serve as bridge funding, allowing more time for Bay Area leaders to put a regional transit funding measure on the November 2026 ballot.
Carter Levin, cofounder of the Transbay Coalition, a public transportation advocacy group, urged Newsom to act on the loan to Bay Area transit agencies.
“This emergency loan would stave off imminent service cuts that would devastate working people, seniors, students, families, and businesses. ”
At the rally at Civic Center Plaza, transit advocates recreated a familiar scene from 2023 with cardboard boxes shaped like AC Transit, BART, and Muni vehicles. Each transit vehicle was connected with IV bags, representing that the transit systems are on life support. In 2023, when transit advocates then requested funding from the state for transit, the transit vehicles were in make-shift coffins.
“This emergency loan would stave off imminent service cuts that would devastate working people, seniors, students, families, and businesses, Carter Lavin, cofounder of the Transbay Coalition, said at the rally.
While Bay Area transit agencies have been hit by lowered ridership and revenue caused by the pandemic, Wiener said that the issue of the lack of funding from the state has been ongoing since he was in office.
“People need to stop blaming the pandemic and work from home, Wiener said. “This is a longstanding problem because California has not done what it needs to do.”
Bay Area transit agencies, such as the San Francisco Municipal Transportation Agency, are facing a financial crisis at the start of the 2026–27 fiscal year, which begins on July 1 of next year.
The SFMTA is facing a budget deficit of $322 million, which transit advocates warn could lead to future cuts in Muni services. Transportation officials in San Francisco have already reduced some services this year, although some have been reinstated.
