Newsom signs AB 117, authorizing $590 million state loan to Bay Area transit agencies

Governor Gavin Newsom signed AB 117 at BART's Daly City yard, authorizing a $590,000,000 state loan intended to shore up Bay Area transit operations.

Speakers at the event framed the loan as short-term bridge funding aimed at averting service reductions while local leaders pursue sustainable, long-term funding. BART board president Melissa Hernandez said the Daly City facility "is where the magic happens" and cited BART's scale: "we dispatch 665 trains each weekday serving 55,000,000 trips last year," which she said helps sustain the region's economy.

Metropolitan Transportation Commission chair Sue Nowak described the legislation as regional cooperation to prevent service cuts, saying the agreement "represents the Bay Area at its best when we work together as a region and partner with the state." Assemblymember Lori Wilson, chair of the Assembly Transportation Committee, said AB 117 provides "temporary" bridge funding aligned with the 2025 budget act while local officials consider longer-term solutions. Ray Fields, vice president of SEIU Local 1021's BART chapter, emphasized equity and ridership, noting that "44% of BART riders do not own a vehicle."

Newsom outlined the loan's terms: "Just briefly, it's $590,000,000 loan. It will be paid back in 12 years. First 2 years will be interest free," and said subsequent interest would be tied to returns from the state's Surplus Money Fund so the general fund would not be used to repay the loan. He said the loan is secured against a transit capital program and that the California Transportation Commission will provide oversight and accountability for use of the funds.

Reporters asked several follow-up questions after the signing. In response to a question about an arrest reported at the High-Speed Rail Authority, Newsom said an independent investigation by the authority is underway and that the board will investigate related issues. On safety and immigration-related enforcement, he said agencies should avoid operational involvement by ICE and that agents "should be unmasked" and provide identification when operating around transit.

Newsom said the state's approach is intended to stabilize service while the region works on multi-county, long-term funding. He added that the signing was the first budget-related action since the January budget submission and said he would sign two additional bills later in the day related to administrative efficiency and promotion of state economic strengths.

The signing completes the immediate action authorized by AB 117; state and regional officials said the loan is temporary support while longer-term ballot and legislative measures are pursued to address operating shortfalls.