Bay Area Transit Agencies Secure $590 Million Loan to Avert Service Cuts

Loan will sustain operations at AC Transit, BART, Caltrain, and SF Muni until regional funding measure can be implemented.

Jan. 31, 2026 at 6:15pm

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The Office of Governor Newsom, the California Department of Finance, and the Metropolitan Transportation Commission (MTC) have reached an agreement on a $590 million loan for Bay Area transit agencies. This loan will help avert major service cuts at AC Transit, BART, Caltrain, and SF Muni during the 2026-27 fiscal year, sustaining operations used by hundreds of thousands of daily transit riders across the region.

Why it matters

The loan provides essential short-term financing to support Bay Area transit operations while the region works on long-term funding solutions. Public transit is crucial for the Bay Area's economy and communities, and this agreement will help maintain a stable and reliable system until a potential regional funding measure can be implemented.

The details

The loan will be funded no later than July 1, 2026, using money awarded but not yet allocated for Bay Area projects by the California Transportation Commission through the state Transit Intercity Rail Capital Program (TIRCP). The loan agreement includes a 12-year repayment term, with interest-only payments during the first two years, and the repayment will be secured by the 'revenue-based' portion of State Transit Assistance (STA) that goes directly to the transit agencies.

  • The loan agreement was reached on January 30, 2026.
  • The loan will be funded no later than July 1, 2026.
  • A potential regional funding measure may appear on the November 2026 ballot in Contra Costa, Alameda, San Francisco, San Mateo, and Santa Clara counties.

The players

Gavin Newsom

The Governor of California.

Metropolitan Transportation Commission (MTC)

The regional transportation planning and financing agency for the nine-county San Francisco Bay Area.

Scott Wiener

A California state senator representing San Francisco.

Jesse Arreguín

A California state senator representing Berkeley.

Sue Noack

The chair of the Metropolitan Transportation Commission and the mayor of Pleasant Hill.

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What they’re saying

“California is following through in our support for Bay Area transit and the riders who rely on it every day. This agreement between my Administration and the Metropolitan Transportation Commission provides essential short-term financing to support Bay Area transit operations while the region works together on long-term funding solutions. Public transit is essential to our economy and to communities across California, and through continued partnership with regional and local agencies, we are delivering a more stable and reliable system – now and for the future.”

— Gavin Newsom, Governor of California

“Today is a huge win for Bay Area transit and for both transit riders and drivers. For the past year, we've worked hard to craft a bridge loan to ensure BART, Muni, Caltrain and AC Transit are not forced to enact massive service cuts — potentially going into a death spiral — as we build toward a regional revenue measure to stabilize and strengthen these systems for the long run. I'm proud of our work with regional stakeholders and the Governor to make this loan a reality. Public transportation is part of the Bay Area's lifeblood, and we must do everything in our power to strengthen it and protect it from service cuts.”

— Scott Wiener, California State Senator

“I am grateful to the Governor and my legislative colleagues for supporting Bay Area transit with this loan. This agreement is a huge win to keep our transit agencies running and ensure that the Bay Area can continue as a major economic engine, while not compromising critical transit projects. At a time when we are at risk of significant service cuts that would grind the region to a halt, this additional funding will provide a vital lifeline to the Bay Area's major transit agencies and provide fiscal stability as we move forward on a broader regional self-help measure this year.”

— Jesse Arreguín, California State Senator

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This agreement highlights the critical importance of public transit for the Bay Area's economy and communities, and the need for long-term, sustainable funding solutions to maintain a reliable and efficient transportation system. The loan provides a crucial bridge until a potential regional funding measure can be implemented, demonstrating the collaborative efforts of state and local leaders to support the region's transit agencies and the riders who depend on them.