CA: New California budget could slash $1.5 billion from transit

California leaders are poised to cut $1.5 billion in funding for public transit from a state greenhouse gas emissions program, a move that could cripple agencies already devastated by COVID.

The funds at issue come from California's Cap-and-Invest plan, which collects fees from oil and fossil fuel companies and distributes them among projects and agencies that reduce pollution. Some of that money goes toward transit infrastructure, and over the past two years lawmakers have also dedicated a portion toward basic service.

But Gov. Gavin Newsom removed that economic life raft in the 2025-2026 budget proposal he rolled out last week, at a moment of economic austerity. Many programs could be scaled back as the state faces a $12 billion shortfall. Newsom's draft budget did not fulfill a request from state Sen. Jesse Arreguin, D- Berkeley, to set aside $2 billion for transit operations.

With roughly a month left in the budget process, agencies and advocates are vying for the governor's ear, and scrambling to convey their importance. Legislators must pass a budget for Newsom to sign before the next fiscal year starts on July 1.

"Throughout their history, California transit agencies have been partners with the state in combatting climate change and addressing air quality issues by inciting mode shift, incubating and deploying near-zero and zero-emission vehicle technologies, and facilitating sustainable growth patterns throughout California," wrote Michael Pimentel, executive director of the California Transit Association, in a letter to Newsom, State Assembly Speaker Robert Rivas, and state Senate President Pro Tem Mike McGuire.

The letter called for $1.6 billion in continuous appropriations for transit, along with $1.1 billion in one-time funding.

State Sen. Scott Wiener, a San Francisco Democrat and longtime steward of public transportation, fervently objected to what he sees as the gutting of an emergency bailout. Wiener had pushed Newsom and his legislator colleagues to commit money in 2023 so that bus and rail agencies could keep running a reasonable amount of service. He's worried those funds will evaporate in the next budget.

On Thursday, Wiener voiced objections on social media to the governor's "proposed sweep of $1.5 billion from cap and trade funds." He predicted drastic ripple effects, including a $290 million cut from BART, $200 million slashed from Muni and $250 million from Los Angeles Metro. Projects in San Diego, Orange County, Sacramento, the Central Valley and the Inland Empire could all be imperiled, among them high-speed rail and the BART extension to downtown San Jose.

Spokespeople for Newsom were not immediately able to comment.

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