Caltrain has received USD 38.8 million federal pandemic relief through the American Rescue Plan (ARPA) which will be used to keep company’s operations running to serve workers, students and families while the agency continues to work towards the electrification programme.
The Californian commuter rail operator, serving the San Francisco Peninsula and Santa Clara Valley region, has faced unprecedented financial challenges as a result of the pandemic. Caltrain losses in fare revenue were significant as ridership decreased to 5% in the early days of the pandemic and remains at approximately 20% of previous levels. The loss in fare revenue is especially impactful to Caltrain because pre-pandemic, over 70% of the operating funds came from fares.
“Covid-19 has posed a serious challenge to public transit, especially commuter railway transport. This federal support ensures that, as the Bay Area continues to reopen and riders return to the system, Caltrain will be ready to get them where they need to go,” Caltrain Board of Directors Chair Steve Heminger said.
Funding provided by the Federal Government through ARPA, as well as the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act has allowed Caltrain to maintain service throughout the pandemic. The funding received will help to balance projected deficits through financial year 2023.
In March 2021, Caltrain also was awarded a USD 39.75 million federal pandemic relief through the Coronavirus Response and Relief Appropriations Act (CRRSAA) to recover from revenue losses due to the Covid-19 crisis.
Caltrain is also facing financial challenges due to the increase of electrification programme costs by USD 462 million from USD 1.98 billion to USD 2.44 billion and is collaborating with relevant financial partners to cover the total cost of the project. At the end of January 2022 company’s electrification project has achieved a milestone with the completion of the foundations for the new catenary system.
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