Bay Area transit agencies facing financial challenges will receive state financial support, though the exact amount of funding is uncertain.
Governor Newsom said Wednesday in a statement that the state will offer short-term funding relief for Bay Area transit agencies “with hundreds of millions of dollars.” The announcement comes as Bay Area transit agencies were left with uncertainty over the weekend as state lawmakers said a $750 million loan in the state-approved budget was in limbo.
There were no details about the amount of funding that Bay Area transit agencies would receive from the state.
“Transit is a lifeline to millions of Californians — and after billions in state investment, we’re continuing to back Bay Area agencies with ongoing support tailored to their needs,” Newsom said in a statement. “We’ll keep partnering with them now and into next year — aligning flexible financing tools to their timelines — so we can deliver a sustainable, rider-first transit system together.”
His office continued, adding that the Department of Finance and the California State Transportation Agency will work with transit agencies to develop financing tools and structures that allow for the repayment of loans to the state.
Ahead of the Wednesday announcement, city leaders and transit advocates held an emergency rally at Civic Center Plaza, calling on the governor to approve the loan. San Francisco Mayor Daniel Lurie, who attended the rally, said his office was in talks with the governor’s office on an hourly basis since last Thursday.
“I thought the loan was dead over the weekend. I think we may have put it back onto life support.”
— Senator Scott Wiener
State Senator Scott Wiener, who posted on social media that $750 million was in limbo, appeared more optimistic on Monday at the rally.
“I’ll tell you, the end of last week, I thought the loan was dead over the weekend, the state senator said. “I think we may have put it back onto life support.”
BART and the San Francisco Municipal Transportation Agency are facing steep deficits over the next several years. The SFMTA, which oversees Muni, is projected to face a $322 million deficit at the start of the next fiscal year on July 1, 2026. BART is facing a projected $350 million deficit the following year.
The $750 million is intended to act as bridge funding for transit agencies as they seek to place a regional sales tax measure in the November 2026 election. If passed, revenue from the measure will not begin to flow to the transit agencies until 2027.
Wiener and state Senator Jesse Arreguin are cosponsors of the Senate Bill 63, which would authorize the ballot measure if passed in the state legislature.
Lurie is also looking at a parcel to support funding Muni operations in the city. A report from the Muni Funding Working Group estimated that a parcel tax could generate $85 million annually.
