CaliforniaAB 1172025-2026 Regular SessionHouseWALLET

Budget Act of 2025.

Sponsored By: Jesse Gabriel (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

State loan keeps Bay Area transit running

The law creates a temporary state loan to keep Bay Area transit service running. By July 1, 2026, up to $590 million from TIRCP goes to MTC. MTC can lend to BART, SFMTA, Caltrain, and AC Transit for operations, not construction. Money comes only from regional TIRCP awards not fully allocated by December 31, 2025. MTC repays quarterly over 12 years, with two years of interest‑only; the rate matches the Surplus Money Investment Fund. State Transit Assistance funds are pledged as backup security, and MTC can redirect an agency’s share if it misses payments. These loan rules end and are repealed after full repayment.

Local costs repaid if state mandates

If the Commission on State Mandates finds this law creates state‑mandated costs, local agencies and school districts get reimbursed. Reimbursement follows existing rules in state law.

Safety checks on Bay Area transit funds

The state tracks unallocated regional transit funds. If awarded‑but‑unallocated funds minus outstanding loans drop below $350 million, the CTC may set a plan that adjusts or delays future allocations during repayment. If a plan would harm a project, MTC and the state can prioritize state‑allocated funds to protect it. The state can then return to MTC loan repayments equal to those state funds used.

Sponsors & Cosponsors

Sponsor

  • Jesse Gabriel

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 146 • No: 47

Senate vote 2/19/2026

Item 76 — Senate SFLOOR

Yes: 28 • No: 9

House vote 2/19/2026

Item 1000 — Assembly AFLOOR

Yes: 54 • No: 17

legislature vote 2/17/2026

Vote in CS62

Yes: 11 • No: 4

House vote 3/20/2025

Item 47 — Assembly AFLOOR

Yes: 53 • No: 17

Actions Timeline

  1. Chaptered by Secretary of State - Chapter 6, Statutes of 2026.

    2/19/2026Senate
  2. Approved by the Governor.

    2/19/2026legislature
  3. Enrolled and presented to the Governor at 11:30 a.m.

    2/19/2026legislature
  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 54. Noes 17.).

    2/19/2026House
  5. Assembly Rule 63 suspended. (Ayes 53. Noes 16.)

    2/19/2026House
  6. In Assembly. Concurrence in Senate amendments pending.

    2/19/2026House
  7. Read third time. Passed. Ordered to the Assembly. (Ayes 28. Noes 9.).

    2/19/2026Senate
  8. Read second time. Ordered to third reading.

    2/18/2026Senate
  9. From committee: Do pass. (Ayes 11. Noes 4.) (February 17).

    2/17/2026Senate
  10. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F. R.

    2/13/2026Senate
  11. In committee: Hearing postponed by committee.

    2/4/2026Senate
  12. In committee: Hearing postponed by committee.

    6/25/2025Senate
  13. Referred to Com. on B. & F. R.

    4/2/2025Senate
  14. In Senate. Read first time. To Com. on RLS. for assignment.

    3/20/2025Senate
  15. Read third time. Passed. Ordered to the Senate. (Ayes 53. Noes 17. Page 721.)

    3/20/2025House
  16. Read second time. Ordered to third reading.

    3/18/2025House
  17. (Ayes 53. Noes 17. Page 643.)

    3/17/2025House
  18. Ordered to second reading.

    3/17/2025House
  19. Withdrawn from committee.

    3/17/2025House
  20. Referred to Com. on BUDGET.

    2/3/2025House
  21. From printer. May be heard in committee February 8.

    1/9/2025House
  22. Read first time. To print.

    1/8/2025House

Bill Text

  • Chaptered

    2/19/2026

  • Enrolled

    2/19/2026

  • Amended Senate

    2/13/2026

  • Introduced

    1/8/2025

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