Silicon Valley BART expansion has multimillion-dollar shortfall

Federal funding will be flowing into Silicon Valley to help expand BART service to Santa Clara, but the revenue is just short of VTA’s request, leaving officials looking for ways to plug the shortfall.

VTA announced a $5.1 billion grant on Friday from the Federal Transportation Agency for the second phase of BART’s expansion into Silicon Valley. That’s about $1 billion less than what was requested, and officials are looking to close a $700 million gap in the $12.75 billion project.

VTA officials celebrated the funding at a news conference on Friday. The $5.1 billion marks the agency’s second largest award for a transportation project, and officials said it marks the federal government’s interest and confidence in the project. Early construction began in late April at the Newhall Maintenance Facility in Santa Clara.

Still, some are worried about finding a way to fill the final $700 million hole in revenue., Suds Jain, a VTA board member and Santa Clara councilmember, said he was nervous about the project’s costs when it jumped to more than $12 billion and is still concerned costs could go higher, which would make the funding gap even harder to meet.

“We have to look at all the options, whatever it takes to save $700 million,” Jain told San José Spotlight. “I sincerely doubt we’re going to get it from the feds, because we did all the lobbying we could. The only other options are the state or local taxpayers.”

Local officials and labor leaders, including VTA Board Chair and Santa Clara County Supervisor Cindy Chavez, gathered in June to put pressure on the federal government to provide the full amount. At the time, Chavez said anything less than the requested $6.2 billion could threaten VTA’s ability to finish the project.

The project’s costs have jumped a few times, including a $500 million jump in March from updated construction figures. In 2014, the project was estimated to cost around $4.7 billion and anticipated to open in 2036. Now, the most recent estimate puts the project at $12.75 billion, and it’s expected to open in Spring 2037.

Officials were optimistic about the project’s finances and future at Friday’s news conference. Chavez said VTA is taking steps to address the shortfall, such as a 60-day freeze on any professional spending related to the project and renegotiating existing contracts.

“I have to say, I am so confident that as a community, we’re going to be able to wrap our arms around this project and make it happen,” Chavez said.

Jain said the VTA board and project oversight committee may explore other avenues to cut costs within the project, including switching to dual bore tunneling rather than single bore for the more than 5-mile stretch underground. He added he’s been worried about increasing costs for other parts of the project, like the drill’s launch box, which he said was initially projected to cost $150 million but recent cost estimates put at more than $500 million.
The project oversight committee will meet later this week, and Jain said he expects a discussion on how to resolve the funding gap.

San Jose Mayor Matt Mahan, also a VTA board member, said at the news conference he’s grateful for the federal government’s investment, and that it mirrors residents’ support and belief in how the project will help local communities.

“There’s still a shortfall,” Mahan said. “Everyone has to come to the table, like any family in our community, like any small business in our community, we have to make sure that what we want matches the resources we have.”

Contact B. Sakura Cannestra at [email protected] or @SakuCannestra on X, formerly known as Twitter.