Bay Area Headlines

Newsom promises loans for cash-strapped Bay Area transit agencies

KALW | By Sunni Khalid

Published September 10, 2025 at 2:06 PM PDT

One of CalTrain's new electric locomotives

Governor Gavin Newsom said earlier today (Wednesday) that 750 million dollars in state loans to Bay Area transit agencies will be finalized before the end of the legislative session on Friday.

For days, it’s been uncertain if state funding for public transportation would reach the Bay Area.

But the governor added that a deal has been reached and the loans will be made available. That means BART, Muni, CalTrain and AC Transit won’t have to cut services.

All Bay Area transit systems are running large budget deficits.

They say ridership declines that started during the COVID-19 pandemic have devastated their revenue.

In November 2026, voters will decide whether or not to approve a half-cent sales tax to help fund the transportation agencies. If approved, it’s estimated to generate about 560 million dollars annually for regional transportation.