Caltrain plans for possible funding shortfall, pushes for regional funding measure
Caltrain could face significant service cuts and operational impacts if the proposed regional transit funding measure fails in 2026 and no new external funding becomes available for the transit agency.
Transit agencies across the Bay Area are facing budget shortfalls as post-pandemic travel patterns continue to impact ridership. Caltrain has worked to address its budget woes on three fronts: cutting costs, monetizing resources and adapting service. The agency has implemented cost-cutting strategies, including FTE freezes, crewing efficiencies, reductions in professional services and other non-labor expenses. The agency is also working on monetizing available resources, including expanded advertising, property leasing, selling fiber optic cable and implementing transit-oriented developments. Finally, Caltrain has modernized its service—boosting train frequency, improving reliability and enhancing the rider experience following electrification. The agency reports that preliminary fiscal year (FY) 2025 budget end results are showing positive impacts from the cost efficiencies and more revenue than budgeted.
The shifted focus is paying off: ridership has risen 55% compared to September of 2024, with weekend ridership doubling and four consecutive months of over one million riders. Riders’ satisfaction is also high, with 91% of riders approving of the agency in a recent poll. Further, results from a recent rider satisfaction rating are the highest they have been ever since the agency started surveying Caltrain riders.
The regional funding measure would establish a source for Caltrain and other Bay Area transit systems to maintain reliable, accessible service. If the measure fails, Caltrain would have to work to reduce the structural funding gap, unless new external funding sources are identified.
If the measure isn’t implemented, potential impacts include:
- Closing more than one-third of stations
- No weekend service
- Reducing service to once an hour
- Ending operations by 9:00 p.m.
- Cutting segments of service
The agency says these impacts would undermine progress it has made to rebuild ridership since the COVID-19 pandemic, improve service reliability and support clean air goals through electrification.
“Caltrain has made tremendous strides in improving service, expanding ridership and earning the trust of our riders and communities,” said Caltrain Executive Director Michelle Bouchard. “The regional funding solution would provide a sustainable funding source to continue those efforts, but should it fail to pass we will face a number of scenarios that will affect years of progress, affect tens of thousands of daily riders who depend on Caltrain, increase traffic and adversely affect the Bay Area’s economy.”
Caltrain says it will continue to work through budget scenarios with its board in early 2026, with additional details on savings that can be made.