Transit funding bill passes California Senate, heads to Gov. Newsom

California's Senate passed Senate Bill 105 unanimously, approving vital funding for transit agencies facing a financial crisis. The legislation allows the Department of Finance until January 10, 2026, to explore financing options to support local transit systems. Governor Newsom acknowledged the essential role of transit for millions of Californians and committed to developing flexible funding solutions. The bill's passage was influenced by pressure from Rep. Nancy Pelosi and San Francisco Mayor Daniel Lurie, who urged action before the legislative deadline.

BART's plans to secure a loan are crucial for maintaining service reliability through 2026, coinciding with a ballot measure that could generate additional funding. The proposed measure would implement a retail tax starting in 2027 if approved by voters. In 2023, the California legislature allocated $1. 1 billion over three years to transit agencies, with BART receiving significant funds for operations and expansion. This new funding approach aims to provide stability and reduce reliance on fluctuating ridership revenues.