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California Governor Gavin Newsom approved a $590 million loan to help Bay Area Rapid Transit address budget shortfalls it has faced in recent years due to declining ridership due to the pandemic.
For years, the agency’s BART service has been funded primarily by passenger fares and parking fees, but ridership has plummeted since the pandemic and the rise of remote work. The agency says these sources currently cover about a quarter of the agency’s current expenses, resulting in a significant budget shortfall.
Earlier this month, the BART agency announced a “replacement service plan” that would close many lines and trains if new funding is not available.
The loan will provide the BART agency with enough funds to address its $400 million deficit, while also investing in the agency’s services to the region.
“For too long, we have underfunded public transportation, and we are making a step change to that,” said California Congressman Scott Wiener. “The funding challenges facing Bay Area public transit agencies are not new. This challenge has been with us for a very long time.”
“We have a funding problem. If we coast and do nothing, we will lose public transit.”
Last year, Congressman Weiner proposed a $750 million state loan to address the deficit facing the BART agency, but the governor was initially hesitant to accept the loan.
Since late 2025, Newsom, Weiner and other agencies have been working together to address BART’s financial problems, Weiner said.
“This (loaning) is not just about transportation, it’s about economic development, it’s about our heritage, and frankly we’ve been living off of our inheritance. We’ve taken a lot of these systems for granted and haven’t invested in them for decades,” Newsom said.
“This is the first action the state has taken on the budget since the January budget was introduced.”
The state is providing BART agencies with a 12-year, $590 million loan. The first two years of the loan will be “interest-free,” Newsom said, and the interest for the next 10 years will be tied to the state’s surplus funds.
BART officials say ridership has rebounded across the city so far this year, reaching “70% of pre-COVID levels.”
“These trips are what drives the economy and keeps the Bay Area moving,” said BART Board Chair Melissa Hernandez. “So many people in our community rely on BART for affordable transportation, and we cannot afford to let this system fail.”
Noe Padilla is a Northern California reporter for USA Today. To contact him, npadilla@usatodayco.comX Follow him at @1NoePadilla or Bluesky @noepadilla.bsky.social.. Sign up for the TODAY Californian newsletter or follow TODAY Californian on Facebook.
