California Governor Gavin Newsom signed a bill loaning $590 million from the California State Transportation Agency (CalSTA) to Bay Area transportation services BART, Muni and Caltrain on Feb. 19.
The loan aims to combat recent financial struggles for the services, who are experiencing a combined $800 million annual deficit. After the COVID-19 pandemic, the train systems have faced a steep ridership decline, resulting in economic turmoil and threats of service cuts.
According to the San Francisco Bay Area Planning and Urban Research Association (SPUR), a nonprofit policy organization, the loan will last the transportation companies approximately six more months, at which time they will have to enact severe service cuts. This loan had been long anticipated by Bay Area residents…