California government to support Bay Area transit agencies with short-term financial assistance

Bay Area transit agencies will receive a loan of $750 million in short-term financial assistance from the state of California, Gov. Gavin Newsom announced.

“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. 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,” Gov. Newsom said.

Transit agencies and regional partners will work with the state’s department of finance and the California State Transportation Agency to create short-term financial tools that are designed to aid with operational needs, protect service and support fiscal reforms. This assistance will take the shape of structured loans or other financial mechanisms with clear repayment plans to meet the needs of each agency. The Newsom Administration notes that it will evaluate these options on a continual basis to make sure that agency needs are met while strengthening the financial security of these agencies in the long term.

The California Legislature and the Newsom Administration have made multi-year investments in public transit throughout the state, totaling more than $8 billion in addition to the baseline of support. This funding comes in addition to the sustained Cap-and-Invest program under the proposed reauthorization for this year. These resources aid agencies in supporting the state’s climate and equity goals, improve rider experience, protect service, push the zero-emission transitions forward and deliver capital upgrades.