As emergency Covid funds expire and fare revenue covers only about a quarter of operating costs, states are stepping in with conditions. California’s governor conditioned temporary financing for the Bay Area’s systems on state oversight of spending, signaling a shift from blank‑check subsidies to monitored aid. This approach aims to confront rising labor costs while backfilling ridership‑driven shortfalls.
— Conditioned bailouts could reshape transit governance and union negotiations nationwide by making state oversight the price of continued subsidies.
Steven Malanga
2025.09.26
100% relevant
Newsom’s demand for state oversight tied to temporary financing for BART/SF Muni/Caltrain amid a $750 million shortfall and BART running at ~45% of pre‑Covid capacity.
← Back to All Ideas