A massive $750 million loan to prevent severe service cuts to Bay Area public transit was extended on Tuesday, just before it was set to fail. Leaders now have more time to finalize the details of the loan, but if they cannot come to terms, it could cause a major impact for the San Francisco area.The state legislature approved funding the loan as part of this year's budget. However, Gov. Gavin Newsom's staff before Tuesday not reached an agreement with the legislature and transit agencies on the loan's details. Those details need to be made public on Tuesday so the legislature can vote before the session ends. On Tuesday afternoon, officials said the loan was extended, and the Department of Finance now has until Jan. 10, 2026, to finalize the loan.If both sides can't reach a deal, the loan is dead, potentially leaving agencies like BART, SF Muni, Caltrain, and others having to drastically cut down their service. "In the case of BART, that would mean cutting as much as 85% of their trains," said Sebastian Petty, transportation policy advisor for SPUR. "That could be lines taken away, stations closing, and service potentially stopping at 9 p.m."Both BART and SF Muni face budget gaps of over $300 million, and federal relief money from the pandemic is dwindling away. "There could be up to 50% of Muni lines that could get cut," Petty said. "Huge reduction in lines and a huge reduction in frequency."San Francisco Mayor Daniel Lurie said his staff has been meeting hourly with Gov. Newsom's staff to try and reach a deal. Petty says cutting transit could drastically hurt the Bay Area's economic rebound.“If you walk out of the SPUR building, you will see dense, tall buildings," he said. "Those buildings can’t get to full occupancy without transit. There is not enough parking in San Francisco."Others fear for people with disabilities and the low-income community who can't drive or afford a car. “You should be able to go to the hospital, to the library," said Carter Lavin, a transit advocate and co-founder of the Transbay Coalition advocacy group. "You should be able to take the bus and transit to get there and take it back." SPUR says transportation is the second most expensive cost for Californians. They say many in San Francisco choose to live without a car to help afford the expensive housing. "They now have to go out and buy a vehicle, they have to find parking and pay for the parking," Petty said. "It could really upend a lot of people’s lives.”Gov. Newsom's office said in a statement: "We are working with all stakeholders on the parameters of a funding deal. Our shared goal is to agree on the terms of a deal by this fall."See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
SAN FRANCISCO —
A massive $750 million loan to prevent severe service cuts to Bay Area public transit was extended on Tuesday, just before it was set to fail.
Leaders now have more time to finalize the details of the loan, but if they cannot come to terms, it could cause a major impact for the San Francisco area.
Advertisement
The state legislature approved funding the loan as part of this year's budget. However, Gov. Gavin Newsom's staff before Tuesday not reached an agreement with the legislature and transit agencies on the loan's details. Those details need to be made public on Tuesday so the legislature can vote before the session ends.
On Tuesday afternoon, officials said the loan was extended, and the Department of Finance now has until Jan. 10, 2026, to finalize the loan.
If both sides can't reach a deal, the loan is dead, potentially leaving agencies like BART, SF Muni, Caltrain, and others having to drastically cut down their service.
"In the case of BART, that would mean cutting as much as 85% of their trains," said Sebastian Petty, transportation policy advisor for SPUR. "That could be lines taken away, stations closing, and service potentially stopping at 9 p.m."
Both BART and SF Muni face budget gaps of over $300 million, and federal relief money from the pandemic is dwindling away.
"There could be up to 50% of Muni lines that could get cut," Petty said. "Huge reduction in lines and a huge reduction in frequency."
San Francisco Mayor Daniel Lurie said his staff has been meeting hourly with Gov. Newsom's staff to try and reach a deal.
Petty says cutting transit could drastically hurt the Bay Area's economic rebound.
“If you walk out of the SPUR building, you will see dense, tall buildings," he said. "Those buildings can’t get to full occupancy without transit. There is not enough parking in San Francisco."
Others fear for people with disabilities and the low-income community who can't drive or afford a car.
“You should be able to go to the hospital, to the library," said Carter Lavin, a transit advocate and co-founder of the Transbay Coalition advocacy group. "You should be able to take the bus and transit to get there and take it back."
SPUR says transportation is the second most expensive cost for Californians. They say many in San Francisco choose to live without a car to help afford the expensive housing.
"They now have to go out and buy a vehicle, they have to find parking and pay for the parking," Petty said. "It could really upend a lot of people’s lives.”
Gov. Newsom's office said in a statement: "We are working with all stakeholders on the parameters of a funding deal. Our shared goal is to agree on the terms of a deal by this fall."
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
