Bay Area transit will get a bailout, Newsom says. But it may not be the $750M they wanted

"After Bay Area lawmakers raised alarm bells earlier this week that the governor was reneging on a deal to provide a $750 million loan to the region's struggling transit agencies as part of an earlier budget agreement, Gov. Gavin Newsom announced Wednesday that the financial support from the state will indeed materialize. It just might not be $750 million. Or a loan. And exact details won't be decided this Legislative session, as the budget deal earlier this summer stipulated, but rather sometime this fall."

"Newsom's announcement was light on details he intends to provide hundreds of millions of dollars in the form of loans or other mechanisms to the transit agencies, he said. But the statement also implied that Newsom is hesitant to provide a loan without baking in greater oversight over how funds are spent. He said that any state funding would align with operational needs, protect service, and support fiscal reforms, with clear and reliable repayment plans."

State funding for Bay Area transit agencies is forthcoming but will be finalized this fall rather than by the end of the Legislative session. The governor signaled hundreds of millions in support could come as loans or other mechanisms, with an emphasis on oversight, alignment with operational needs, service protection, and clear repayment plans. Pandemic-era ridership declines left agencies reliant on emergency funds that end this year, creating major funding gaps beginning June 2026. Without additional support, agencies such as BART, Muni, and AC Transit say they would need to cut lines and reduce frequencies.

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