California grants Metrolink a $20M lifeline to avoid major service cuts

Major service cuts to Metrolink are on hold for now thanks to a $20 million grant from California’s State Transportation Agency. The Metrolink board of directors approved the agency’s $420 million budget on Friday.

The previous budget proposal included slashing a third of weekday trains and 40% of weekend trains.

“Thankfully, our customers were spared the disappointment and frustration of losing the service they rely on to travel the region for business and pleasure,” Tom Schamber, chief financial officer at Metrolink, said at the board meeting.

How did we get here? 

The Metrolink budget had been approved quarterly since June as staff worked out the annual budget.

Metrolink staff have worked on this year’s budget since last September. The agency has pointed to slowing fare revenue, rising costs due to inflation and low ridership numbers for its budget troubles.

“Fare box revenue ended the year $14 million under budget. This was sobering, and we realized that not only was fiscal [20]26 off, but our ridership expectations for fiscal year [20]27 would need to be recalibrated to this new baseline,” Schamber said.

A majority of Metrolink’s budget is funded by Orange, Los Angeles, Riverside, San Bernardino and Ventura counties’ transportation agencies. For more than a year, Metrolink officials have been building a budget that member agencies, like the Orange County Transportation Authority and L.A. Metro, would approve.

L.A. Metro and OCTA cut their subsidies to Metrolink by 3% and 10%, respectively.

“The challenges ahead of us were becoming more evident,” Schamber said at Friday’s board meeting. “In addition to disappointing fare revenue and funding limitations, we must absorb inevitable cost increases in several of our largest contracts.”

What we know about the grant

The $20 million grant from the state comes with the expectation that Metrolink will retain the same service levels provided today, Schamber added.

Metrolink CEO Darren M. Kettle said another expectation is that the agency must plan to maintain its services for the upcoming year.

“We don't have a plan. We're working on a plan to make sure we have the funding to deliver the same level of service at a minimum,” Kettle said. “With respect to these conditions, based on what we know now, as of last evening, our staff is confident that Metrolink will be able to meet these conditions.”

What’s next? 

Kettle said staff got a head start on next fiscal year’s budget through the state grant application. Officials said the rail agency is also gearing up for the 2028 Olympic Games.