Silicon Valley BART expansion has multimillion-dollar shortfall

Federal funding is on its way to Silicon Valley to help advance the expansion of BART into Santa Clara, but the grant falls short of VTA’s request, leaving officials scrambling to cover the remaining shortfall.

On Friday, the Federal Transportation Agency awarded VTA a $5.1 billion grant for the second phase of BART’s Silicon Valley extension. This amount is approximately $1 billion less than VTA had requested, leaving a $700 million gap in the project’s $12.75 billion budget.

VTA officials marked the occasion with a news conference, celebrating the $5.1 billion grant as the second-largest award the agency has received for a transportation project. They highlighted it as a sign of federal confidence in the project, which saw early construction begin at the Newhall Maintenance Facility in Santa Clara in late April.

Despite the positive news, there is concern about how to bridge the $700 million funding gap. VTA board member and Santa Clara councilmember Suds Jain expressed anxiety over the rising costs, which have already surged from an initial estimate of $4.7 billion in 2014 to the current projection of $12.75 billion. Jain is worried that the funding shortfall could widen if costs continue to escalate.

“We have to explore all possible options to find that $700 million,” Jain told San José Spotlight. “I seriously doubt we’ll get additional federal funds, as we’ve exhausted our lobbying efforts. The remaining options are state or local funding.”

In June, local officials and labor leaders, including VTA Board Chair and Santa Clara County Supervisor Cindy Chavez, lobbied the federal government for the full $6.2 billion. Chavez warned that anything less could jeopardize the project’s completion.

The project’s budget has experienced several increases, including a $500 million rise in March due to updated construction estimates. Originally projected to cost $4.7 billion and open in 2036, the project is now expected to cost $12.75 billion and open in Spring 2037.

Despite these challenges, officials remained optimistic during Friday’s news conference. Chavez announced that VTA is taking steps to address the shortfall, such as implementing a 60-day freeze on professional expenditures related to the project and renegotiating existing contracts. “I am confident that our community will come together to ensure this project is completed,” Chavez said.

Jain mentioned that the VTA board and project oversight committee might explore cost-cutting measures, such as switching from single-bore to dual-bore tunneling for the more than 5-mile underground segment. He also expressed concerns about other project components, like the drill’s launch box, which has seen cost estimates rise from $150 million to over $500 million.

The project oversight committee will meet later this week to discuss strategies for closing the funding gap. San Jose Mayor Matt Mahan, also a VTA board member, expressed gratitude for the federal investment and emphasized the need for collective effort. “There’s still a shortfall,” Mahan said. “Everyone needs to contribute to ensure our goals align with our available resources.”

For more details, contact B. Sakura Cannestra at [email protected] or @SakuCannestra on X, formerly known as Twitter.