California Transit Association Statement on Final GGRF Legislative Action

**PRESS RELEASE**

(Sacramento, CA) - Today, following months of advocacy by the California Transit Association leading an 80-member strong stakeholder coalition, the Legislature took final action on AB 113. The bill includes supplemental investments to the SB 125 program as well as various Greenhouse Gas Reduction Fund (GGRF) supported Tier 3 programs, which are expected to see significant funding cuts beginning this year.

While the bill makes progress toward the California Transit Association's request to honor the state's funding commitments to the SB 125 program and protect Tier 3 programs, it does not ultimately address the full expanse of funding cuts anticipated to Tier 3 programs.

Relative to public transportation, the Budget Bill Jr.:

• Fully honors the state's commitment of $230 million for FY 2026-27 made to public transit agencies in SB 125 (Committee on Budget and Fiscal Review, 2023)
• Assumes higher baseline GGRF funding for the Transit and Intercity Rail Capital Program (TIRCP) of $95 million (up from the $76 million projection in FY 2026-27 budget)
• Assumes higher baseline GGRF funding for the Low Carbon Transit Operations Program (LCTOP) of $48 million (up from the $38 million projection in FY 2026-27 budget)

The Budget Bill Jr. does not provide supplemental investments for TIRCP, LCTOP, or the Affordable Housing and Sustainable Communities Program (AHSC).

"California's Greenhouse Gas Reduction Fund has long been a cornerstone of the state's climate strategy, delivering critical investments in affordable housing near transit, public transit capital projects and operations, and community clean air programs," said California Transit Association Executive Director, Michael Pimentel. "The Association thanks state leaders for their efforts to protect GGRF investments in Tier 3 programs in a challenging fiscal environment.

"While important progress was made this year, several Tier 3 programs remain significantly underfunded, underscoring the need for the state to fully meet its funding commitments in the years ahead. We look forward to partnering with legislative leaders and the next Administration to advance sustainable, long-term solutions that ensure transit operators statewide receive funding needed to keep Californians moving," concluded Pimentel.

For more on the Coalition's efforts over the past year, visit caltransit.org/cap-and-invest.

The California Transit Association represents more than 220 organizations, including public transit, commuter rail, transit allies, and support organizations statewide. Our organization advocates for budget and regulatory action that benefits transit-friendly policies, increased funding, and a balanced transportation system.

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