Transit and Intercity Rail Capital Program: loans: transit operating purposes: San Francisco Bay area.

Removed the phrase 'relating to the Budget Act of 2025' from the bill's short title, which is redundant since Section 75227(g) already declares the relationship to the Budget Act.

Deleted a standalone section stating 'It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2025,' which was redundant with the existing declaration in Section 75227(g).

Standard chaptering formatting changes: page numbers updated from 98 to 96, headers changed from 'AB 117' to 'Ch. 6', committee introduction details removed, and the vote/appropriation/fiscal committee line replaced with the standard 'Appropriation: yes' notation in the digest.

Header changed from 'Assembly Bill No. 117' with blank signature lines to 'STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGAL MATERIAL' with the chapter number (Chapter 6) and approval date (February 19, 2026) filled in.

Page headers changed from 'AB 117' format to 'Ch. 6' format, reflecting the bill's assignment as Chapter 6 of the Statutes.

Requires the Transportation Agency to loan up to $590,000,000 from the Transit and Intercity Rail Capital Program to the Metropolitan Transportation Commission by July 1, 2026.

Limits the loan to funding awarded to Bay Area projects that, as of December 31, 2025, have not been fully allocated by the California Transportation Commission.

Requires MTC to use loan proceeds to make loans to four specified transit entities (BART, SF MTA, Peninsula Corridor JPA, AC Transit) strictly for public transit operating purposes, excluding capital construction costs.

Sets a 12-year repayment period with quarterly installments; the first two years are interest-only, followed by amortized principal and interest payments. Interest rate is tied to the Surplus Money Investment Fund.

All provisions become inoperative upon full repayment of the MTC loan, and the section is repealed on January 1 following notification to the Joint Legislative Budget Committee.

Requires State Transit Assistance Program revenues to be pledged as security of last resort for the MTC loan, and requires each transit entity to use its own STA funding share as security for its sub-loan. MTC may redirect a delinquent entity's STA funds as repayment.

Requires the California Transportation Commission to monitor unallocated project balances. If awarded-but-unallocated funds minus outstanding loan balance falls below $350 million, CTC must establish an allocation plan that can adjust or defer future allocations during the repayment period.

The bill now makes an appropriation (changing the purpose for which continuously appropriated funds may be expended), imposes a state-mandated local program on MTC, and takes effect immediately as a budget-related bill, whereas the original had no appropriation or mandate.