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Caltrain could close one-third of stations if it can't find funding

Caltrain could close one-third of stations if it can't find funding

Noe Padilla, USA TODAYThu, April 2, 2026 at 11:09 PM UTC

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Caltrain could be the next transit system in the San Francisco Bay Area to experience significant service cuts if it cannot secure additional funding through a potential taxpayer referendum.

The Peninsula Corridor Joint PowersBoard of Directors released a plan on April 2 outlining what service could potentially be cut if Bay Area voters do not approve a 2026 ballot measure, which would create a 14-year regional transportation sales tax that is expected to generate millions annually to support and improve the Bay Area Rapid Transit agency and other local transit systems.

The measure will go before voters in Alameda, Contra Costa, San Francisco, San Mateo, and Santa Clara counties on November's ballot.

Like BART, Caltrain is facing an operating cost shortfall. This has left Caltrain with what the company says is a projected "average annual deficit of approximately $75 million" from fiscal years 2027 to 2041 after the transit system experienced a sharp drop in ridership due to the pandemic.

A photo of one of Caltrain's Electric Trains leaving the station.

Although Caltrain says it saw an increase in ridership by "47% in 2025," it is struggling to meet its operational costs to maintain its new electric infrastructure and "state-of-the-art fleet."

“Caltrain is delivering more frequent, faster, and more reliable service for riders up and down the Peninsula," said Caltrain Executive Director Michelle Bouchard in a press release.

“But, as discussed in today’s meeting, we are facing a structural funding challenge that cannot be solved through cuts or efficiencies alone. Without a stable, long-term funding solution, we will be forced to make difficult decisions that would significantly reduce service and impact the communities that rely on Caltrain every day.”

Among the potential service cuts, the Caltrain board was presented with the option of closing more than one-third of stations; eliminating all weekend service; reducing train frequency to once an hour; ending service by 9 p.m.; and cutting segments of service.

The potential cuts would not take effect until 2027, initially beginning with the elimination of weekend services and a reduction in train frequency. If Caltrain continues to face funding shortages, it will then evaluate the need for cutting long-term services by closing stations.

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Currently, Caltrain has 31 stations that serve areas between the San Francisco Peninsula and the Santa Clara Valley. The train can reliably take travelers on a 79-mile trip from Oracle Park in San Francisco to Gilroy, California.

A photo of one of Caltrain's Electric Trains leaving the station.

Earlier this year, California Gov. Gavin Newsom authorized a $590 million loan to help address a budgetary shortfall that BART would be responsible for repaying over 12 years. However, this funding was strictly for the BART system and did not provide any assistance to Caltrain and other regional transit services.

Caltrain has attempted to implement cost-cutting measures to reduce its overhead costs by pausing new hires, improving crew efficiency, and reducing professional services and other non-labor expenses.

The agency is also attempting to raise funds through other sources that aren't operating costs, such as advertising and naming rights, and by monetizing its real estate.

“The public has made it clear that frequent, reliable service was exactly what they needed to get back on board,” said Caltrain Board Chair Rico E. Medina in a press release.

“We are gaining riders and getting people where they need to go, every day. But the reality is that the service that has been such a success will be in jeopardy if our funding picture does not improve this year.”

More: BART commuters see fare increases in 2026 as budgetary shortfall looms

Noe Padilla is a Northern California Reporter for USA Today. Contact him at npadilla@usatodayco.com, follow him on X @1NoePadilla or on Bluesky @noepadilla.bsky.social.

This article originally appeared on USA TODAY: Caltrain could close one-third of stations if it can't find funding

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