What you need to know: More than $2.2 billion total is going to support public transportation in communities throughout the state as part of the second wave of funding from the $5.1 billion transit recovery package in last year’s state budget. 

SACRAMENTO - California is sending billions of dollars to help boost public transit throughout the state.

Governor Gavin Newsom today announced the approval of an additional $343 million to support public transportation. The funding was approved by the California State Transportation Agency (CalSTA) and is the second wave of funding from the transit recovery package in the 2023-24 state budget. This is on top of the first wave of $1.9 billion in funding announced last month.

The Governor’s commitment to public transit is a key part of his build more, faster agenda delivering critical infrastructure upgrades throughout California. Find projects in your community at build.ca.gov.

“Our message to California’s transit agencies is clear: we have your backs. California is committed to investing billions of dollars in public transit because millions rely on this clean, safe and reliable way to get to their destinations.” - Governor Gavin Newsom

As part of Senate Bill 125, a total of $5.1 billion spread across multiple years is going to regional transportation planning agencies with the flexibility to pay for transit operations or capital improvements. The remaining SB 125 funds will be approved yearly through fiscal year 2027-28.

Examples of how transit agencies are using this funding includes:

- The San Joaquin Council of Governments (SJCOG) is using all of their first year allocation to maintain existing service levels in the region. They are receiving nearly $45 million in this disbursement using it all on operations expenditures. The Santa Cruz County Regional Transportation Commission (SCCRTC) is using more than $16 million of their first year disbursement to fund new transit priority infrastructure in their region’s highest ridership corridors as well as funding for transit service restoration and targeted service expansion, for an estimated 252,000 service hours.
- El Dorado County Transportation Commission (EDCTC) is using the entirety of their year 1 funding (more than $10 million) to purchase new zero-emission vehicles and implement a brand new micro transit service within their service area.
- The Council of San Benito County Governments (SBCOG) is investing nearly $4 million-representing their entire year 1 SB 125 amount-to construct a central transit hub that improves regional connections. This also includes the redevelopment of a bus storage yard, maintenance facility and dispatch center and they’ll purchase six new zero-emission buses to replace diesel buses. SBCOG is also committing to reinstating transit services to pre-pandemic levels and implement a new express bus service pilot.

“This critical funding demonstrates California’s continued commitment to public transit. Every dollar represents ongoing advancement of a more sustainable and equitable transit system for all Californians,” said California Transportation Secretary Toks Omishakin. “The targeted result of this funding is improved mobility for all, and we are grateful for the people-focused actions of Governor Newsom and our legislative leaders supporting transit in our state.”

The transit recovery package also includes accountability measures to help stabilize transit systems and retool their long-term operations to better align with the needs of the public. As part of that effort, CalSTA has convened the Transit Transformation Task Force to develop policy recommendations to grow transit ridership, improve the transit experience and address long-term operational needs.