Newsom Approves $590 Million Loan for Struggling Bay Area Transit Agencies

The funding aims to provide stability as commuters return to offices and voters consider tax measures to support transit.

Published on Feb. 26, 2026

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Gov. Gavin Newsom has authorized a $590 million loan to bolster struggling transit agencies in the Bay Area, some of which could collapse without an economic lifeline. The funding is less than the $750 million that state lawmakers had sought, but officials believe it's enough to provide stability as commuters return to offices and voters consider tax measures in November to fund agencies like BART, Muni, and Caltrain.

Why it matters

Bay Area transit operators are facing huge deficits and warning of drastic service cuts if voters don't approve new tax measures to support them. The loan from the state aims to prevent the collapse of major transit systems that millions of residents rely on to get to work and reduce traffic and emissions.

The details

The $590 million loan will be pulled from the Intercity Rail Capital Program and transferred to the Bay Area's Metropolitan Transportation Commission. BART faces a shortfall of up to $400 million a year and has plans to close between 10 and 15 stations if the tax measure fails, while Muni could suspend cable cars, stop regular bus service at 9 p.m., and cut up to 20 routes.

  • On Thursday, Gov. Gavin Newsom authorized the $590 million loan.
  • In June, state lawmakers passed a budget that included a $750 million request for transit agency funding.

The players

Gavin Newsom

The governor of California who authorized the $590 million loan to support struggling Bay Area transit agencies.

Scott Wiener

A California state senator who, along with other lawmakers, had tried to secure $750 million in funding for transit agencies.

Daniel Lurie

The mayor of San Francisco who is promoting a parcel tax to help shore up the city's bus and subway system.

Metropolitan Transportation Commission

The regional transportation planning and financing agency that will receive the $590 million loan from the state.

BART

The Bay Area Rapid Transit system that faces a shortfall of up to $400 million a year and has plans to close stations if a tax measure fails.

Muni

San Francisco's municipal transportation agency that could suspend cable cars, stop regular bus service at 9 p.m., and cut up to 20 routes if a tax measure fails.

Caltrain

The commuter rail system serving the San Francisco Peninsula that would be supported by a regional tax measure.

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What they’re saying

“California is stepping up to support Bay Area transit”

— Gavin Newsom, Governor (Press statement)

What’s next

Voters in five Bay Area counties will consider a sales tax measure in November that would fund agencies like BART, Muni, and Caltrain. In San Francisco, a parcel tax to support the city's bus and subway system is also on the ballot.

The takeaway

The $590 million loan from the state aims to provide a lifeline for Bay Area transit agencies facing massive deficits and the threat of drastic service cuts. However, the long-term stability of these systems will depend on voters approving new tax measures to support them, underscoring the critical role of public funding in maintaining essential transportation infrastructure.