Gov. Gavin Newsom’s office has reached a deal with Bay Area transit operators on a $590 million loan as the state scrambles to avert drastic service cuts to key train and bus lines.
What happened: Both sides finalized an agreement late Friday to tap into funding for future construction projects to offset severe budget deficits linked to pandemic-related ridership declines, such as the shift to remote work.
The agreement will fund the loan by the start of the new fiscal year on July 1, when BART and Muni officials warned that they would slash service by at least half.
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“California is following through in our support for Bay Area transit and the riders who rely on it every day,” Newsom said in a statement.
