California Transit Association Urges Gov. Newsom to Release $2.4 Billion Temporarily Frozen in Critical Funding for Public Transit Agencies Statewide


(Sacramento, CA) – The California Transit Association has submitted a formal letter to Governor Gavin Newsom and issued the following statement today in response to the Administration instituting a discretionary 60-day spending freeze impeding the release of $2.4 billion for public transit agencies approved in last year’s State Budget (Fiscal Year 2023-24, AB 102 / SB 125) and billions more in state investments approved in the previous year. The investments approved last year were set to be released no later than April 30:

“The current spending freeze on funds that were supposed to be appropriated for California’s transit agencies no later than April 30 could have a catastrophic ripple effect,” said Michael Pimentel, Exectuive Director. “This funding was part of a critical lifeline to keep public transit moving in our state. Agencies have made fiscal plans based on a prescribed timeline for when these funds would flow in order to keep their services running, operations funded, and major sustainable transportation and rail capital projects on track. Without the release of this funding, communities across the state will see delays in service restoration and the construction of major transit projects. Our state also risks jeopardizing billions of dollars in one-time federal funding, impacting our state’s climate goals.

“We are urging the Newsom Administration to immediately lift the current spending freeze on FYs 2023-24 and 2021-22 transit funding to meet the needs of agencies and regions across the state. We recognize this is an especially difficult budget year for FY 2024-25 and applaud the Administration and the Legislature on their early budget actions to address the fiscal challenges our state faces.”


The California Transit Association (Association) is the leading advocacy organization and champion for public transit in California. The Association’s more than 220 member organizations include transit operators, commuter rail agencies, transit support groups, national and international transit suppliers, and government agencies. With a motivated and informed membership base, the Association actively engages State decision makers to shape transit-friendly policy, secure increased transit funding and promote the benefits of a balanced transportation system. The Association represents transit's interests before the California State Legislature, the Governor, and regulatory agencies on the local, state and federal levels.

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