This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
2/20/2026
California Gov. Gavin Newsom yesterday signed a bill authorizing the California State Transportation Agency (CalSTA) to loan $590 million to the Metropolitan Transportation Commission (MTC) from the Transit and Intercity Rail Capital Program.
The loan will support and stabilize San Francisco Bay area transit services as the region continues emerging from the impacts of the pandemic and ridership continues to rebound, according to a press release issued by Newsom's office.
Bay Area Rapid Transit, San Francisco Municipal Transportation Agency's Muni rail system, Caltrain and Alameda-Contra Costa Transit District were hit hard by the pandemic. But all four operators have made strong progress in rebuilding ridership in recent years, state and transit agency officials said.
The emergency loan is structured as a bridge to support agencies while the region pursues a long-term funding solution through a potential November 2026 regional sales tax measure authorized through the enactment of Senate Bill 63. If approved by voters, that measure would provide new operating funding beginning in July 2027. The financing would help cover operating deficits and advance a strong, reliable and financially resilient transit system, according to the press release.
MTC will use the loan proceeds to provide short-term operating loans to the four Bay Area transit operators and repay the loan in quarterly installments to CalSTA over a period of 12 years, with interest-only payments during the first two years.