California Gov. Gavin Newsom on Thursday afternoon signed legislation that involves a $590 million loan for Bay Area public transportation.
Speaking before reporters in San Mateo County, Newsom said the loan will be paid back in 12 years. The first two years will be interest-free.
“This is not just about transportation. It’s about economic development. And it’s also about our inheritance, and we have been frankly living off our inheritance,” the Democratic governor said at the news conference and signing ceremony, which featured other elected officials. “We’ve taken a lot of these systems for granted. We haven’t invested in them over the course of many decades, and I say this knowingly as a former representative of the Parking and Traffic Commission, a county supervisor, and mayor of the city and county of San Francisco.”
The governor said people need public transportation. In some cases, Newsom said there are folks in one part of San Francisco whose property values are attached to the success of these transit systems.
“So this is about all of us; this is our identity. It’s not just about moving people. It’s about goods movement, it’s about regional vitality, and it’s about the energy that is our great export here in the Bay Area,” said Newsom.
State Sen. Scott Wiener was also at the bill signing.
He said the funding challenges that public transportation systems in the Bay Area face now are not new.
“They’ve been with us a long time,” said Wiener, a Democrat whose district includes San Francisco and portions of San Mateo County.
“The pandemic did not cause them. The pandemic made it worse and more obvious. But for far too long, we have not adequately funded our public transportation systems, and we are step by step changing that,” said Wiener, who’s running for the U.S. House seat held by former Speaker Nancy Pelosi. Pelosi, D-San Francisco, decided against seeking reelection this year.
Assemblymember Lori Wilson, D-Suisun City, said the measure signed by Newsom authorizes a temporary loan, which will serve as a bridge funding. Wilson said it aligns with the 2025 Budget Act.
“Public transit is not optional for many Californians,” said Wilson. “It connects workers to jobs, students to schools and families to essential services. And transit is also critical to achieving our climate goals and to reducing congestion on our roads.”
Wilson added that the bill provides flexibility while local leaders consider long-term solutions and engage stakeholders and constituencies.