California Plans $750 Million Short-Term Aid Bay Area Transit

California Governor Gavin Newsom has announced a $750 million short-term loan to support Bay Area transit agencies including BART, Muni, Caltrain, and AC Transit amid financial struggles caused by declining ridership and expiring pandemic emergency funds. The state’s Department of Finance and the California State Transportation Agency will collaborate with transit agencies to design flexible financing tools such as structured loans with clear repayment plans that align with operational needs and support fiscal reforms. This funding aims to prevent severe service cuts and protect transit as a vital resource for millions of Californians, while also advancing state climate and equity goals. Although the loan approval deadline was initially missed, the deal is being finalized with an extended timeline into early 2026 to ensure agencies’ financial stability. The Newsom administration emphasizes ongoing evaluation of assistance options to maintain sustainable, rider-first transit systems. Additionally, a potential half-cent sales tax will be on the 2026 ballot to generate further funding for regional transportation.