Gov. Newsom announces new funding for Bay Area public transit
By Carlos E. Castañeda
California Gov. Gavin Newsom announced on Thursday that he had signed legislation to extend additional funding for Bay Area public transit agencies.
Newsom said that he signed legislation extending a $590 million bridge loan to regional transit agencies. The funding is designed to avert major service cuts expected to begin during the summer.
The loans will need to be paid back in 12 years, with the first two years of payments being interest-free, Newsom said.
“This agreement will help protect transit service for more than three million monthly riders,” Newsom said in a prepared statement. “The benefits of a strong transit system are clear: growing ridership, cleaner air, and less congested roads. I’m 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.”
State Sen. Scott Wiener (D-San Francisco), who pushed for the transit loan along with Sen. Jesse Arreguin (D-Berkeley), issued a statement saying, “This 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’m immensely proud that we got it over the finish line.”
The $590 million loan is less than the $750 million that local lawmakers said Newsom had promised earlier.
In October 2025, Newsom signed legislation authorizing a 2026 ballot measure in which voters will decide on a regional sales tax to fund transit. The tax is expected to generate about $980 million annually across five Bay Area counties.
BART, San Francisco Muni, Caltrain, Alameda-Contra Costa County Transit, and other Bay Area agencies face staggering deficits in 2026 following the end of federal pandemic relief funding.
