Haney Bill to Save At-Risk Downtown San Francisco Transit Project Heads to Governor

SACRAMENTO, CA - A major push to revitalize downtown San Francisco took a big step forward today. Assemblymember Matt Haney's (D-San Francisco) bill to keep The Portal - a key part of a broader downtown transit and revitalization project - moving forward passed the Legislature and now heads to the Governor's desk.

AB 2308, the San Francisco Transit Neighborhood Act, protects a critical funding source for the project, which will expand transit access, support new housing and downtown recovery, and create thousands of good-paying union jobs.

"This is about bringing people back to downtown San Francisco," said Haney, who chairs the State's Committee on Downtown Recovery. "San Francisco is about to host some of the biggest events in the country, and we need transit that makes it easy for people from across the Bay Area to get here. The Portal will connect more people to our restaurants, small businesses, hotels, neighborhoods, and major events."

San Francisco is preparing for major events including Vogue World, the 2027 WNBA All-Star Weekend, and the 2028 MLB All-Star Game, bringing huge crowds into the city at a critical moment for downtown recovery.

The Portal will extend Caltrain from Fourth and King streets to the Salesforce Transit Center, creating a direct regional rail connection into downtown. It is the second phase of the Transbay Program, which has already delivered the Salesforce Transit Center and helped redevelop approximately 40 acres downtown.

But the pandemic and changes in San Francisco's development market dramatically reduced expected revenue. According to the TJPA, the project has lost $275 million in borrowing power needed to provide the local match for approximately $3.38 billion in federal funding. Without that match, billions in federal investment - and the project's future - could be at risk.

AB 2308 addresses the shortfall by extending already-approved Net Tax Increment from former state-owned parcels for 25 years, from 2050 to 2075. The extension is expected to restore approximately $188 million in borrowing power, helping keep The Portal financially viable and protect its federal funding.

The bill creates no new tax, redirects no funding, and does not change the existing financing structure.

"Assemblymember Haney's leadership on AB 2308 has been critical to protecting the future of The Portal and ensuring we can maximize the local funding needed to leverage billions in federal investment," said Adam Van de Water, Executive Director of the Transbay Joint Powers Authority. "We are incredibly grateful for his partnership and commitment to delivering this transformative transit project for San Francisco, the Bay Area, and California."

The bill's passage comes just weeks after the Assembly Committee on Downtown Recovery, chaired by Haney, brought together transit leaders and experts from across California to examine transit's role in downtown recovery. Their message was clear: downtowns need reliable transit to bring back workers, residents and visitors, while transit systems need active downtowns to rebuild ridership.

"Downtown recovery isn't just about getting office workers back five days a week," said Haney. "It's about making downtown a place where people come to live, eat, shop, see a game, or go to a concert. Connecting downtown directly to the rest of the Bay Area by rail is one of the biggest investments we can make in that future."

The bill now sits on the Governor's desk awaiting a signature.

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