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SB 125 Transit Program

Overview

SB 125 (Chapter 54, Statutes of 2023) guides the distribution of $4 billion through the Transit and Intercity Rail Capital Program on a population-based formula to regional transportation planning agencies, which will have the flexibility to use the money to fund transit operations or capital improvements. The transportation budget trailer bill also establishes the $1.1 billion Zero-Emission Transit Capital Program to be allocated to regional transportation planning agencies on a population-based formula and another formula based on revenues to fund zero-emission transit equipment and operations. SB 125 includes an accountability program to govern the distribution of these funds, on which there is more detail below.

Further, AB 173 (Chapter 53, Statutes of 2024), SB 108 (Chapter 35, Statutes of 2024), and SB 109 (Chapter 36, Statutes of 2024) amended the Budget of Act of 2024 adjusting the timing of the availability of funds for both the TIRCP and the ZETCP. For the TIRCP, $2,000,000,000 of General Fund and GGRF funding was made available for the 2023–24 fiscal year, $1,000,000,000 of General Fund and GGRF funding is made available for the 2024–25 fiscal year, and $1,000,000,000 of General Fund and GGRF funding is made available for the 2025–26 fiscal year. For the ZETCP, $190,000,000 of PTA funding was made available for the 2023-24 fiscal year, $220,000,000 of GGRF funding is made available for the 2024-25 fiscal year, $0 is made available for the 2025-26 fiscal year, $230,000,000 of GGRF funding is made available for the 2026-27 fiscal year, and $460,000,000 of GGRF funding is made available for the 2027-28 fiscal year.

In addition, SB 125 establishes a Transit Transformation Task Force led by the California State Transportation Agency to develop policy recommendations to grow transit ridership, improve the transit experience and address long-term operational needs.

SB 125 Program Allocations (NEW)

As of August 30, 2024, CalSTA has approved more than $2.2 billion to support public transportation as part of the first wave of SB 125 funding. This funding – totaling $2.238 billion with amounts varying based on regional population – is going to 40 planning agencies, with more than $600 million initially requested to support transit operations.

CalSTA anticipates approving additional Initial Allocation Packages for remaining planning agencies, covering the first year of funding on a rolling basis totaling $166 million. The remaining SB 125 funds will be approved yearly through fiscal year 2027-28 with the second year of SB 125 funding for fiscal year 2024-25 already available for distribution.

Accountability and Program Development

SB 125 requires CalSTA to develop and administer an accountability program to govern the distribution of funds. On January 10, 2025, CalSTA released final guidelines governing the distribution of the second year of SB 125 funding as well as a final annual reporting template. Each RTPA that has not yet submitted an Initial Allocation Package (or that submitted an Initial Allocation Package that excluded the Short Term Financial Plan) please refer to the requirements for funding allocations outlined in the Final SB125 Guidelines dated September 29, 2023. To be eligible to receive funding from year 2 of these programs, RTPAs must submit a regional short-term financial plan if not already submitted in year 1, an updated SB 125 Fund Request Form, and a completed Annual Reporting Template, as outlined in the SB 125 Cycle 2 Guidelines.

SB 125 Program Reference Material

Transit Transformation Task Force

SB 125 requires CalSTA to establish and convene the Transit Transformation Task Force on or before January 1, 2024, and include representatives from the department, various local agencies, academic institutions, nongovernmental organizations, and other stakeholders. The task force is required to solicit and develop a structured, coordinated process for engagement of all parties to develop policy recommendations to grow transit ridership and improve the transit experience for all users of those services. CalSTA, in consultation with the task force, is required to prepare and submit a report of findings and policy recommendations based on the task force’s efforts to the appropriate policy and fiscal committees of the Legislature on or before October 31, 2025. The report must include a detailed analysis of specified issues and recommendations on specified topics, including, among others, reforming the Transportation Development Act.

CalSTA announced the 25-member task forceon December 8, 2023.CalSTA anticipates the task force will hold in-person meetings every two months beginning in February 2024.

Meetings