A Santa Clara County civil grand jury report sharply criticized the Valley Transportation Authority\u2019s handling of the nearly $13 billion San Jose BART extension Wednesday, saying the agency has failed to control financial risks, weakened oversight and jeopardized public trust in one of the Bay Area\u2019s most consequential transit projects.<\/p>\n
The report lands as VTA prepares its final application for $5.1 billion in federal funding<\/a> \u2014 money the agency is counting on to fund nearly half of the project \u2014 and questions mount about whether it can contain costs.<\/p>\n The 6-mile, four-station BART extension, which will run from Berryessa Transit Center in North San Jose, through downtown and to Santa Clara, has been several decades in the making, with repeated delays and cost overruns fueling uncertainty. In 2014, the project was expected to cost $4.7 billion and open in 2026, but the latest estimates now peg the price tag at $12.75 billion with a 2037 opening.<\/p>\n \u201cThe VTA Board has failed in its responsibility to provide effective management, oversight and financial control of the BSVII Project,\u201d the report said, referring in shorthand to the BART to Silicon Valley project\u2019s second phase.<\/p>\n Campbell City Councilmember Sergio Lopez, who serves as the chair of VTA\u2019s Board of Directors, said they take the findings \u201cseriously\u201d and \u201cremain committed\u201d to improving transparency and accountability.<\/p>\n The grand jury said in the report that the lengthy timeline exposes VTA to financial risks, including the rising cost of labor and materials. The agency has not conducted an updated cost estimate since 2024, though it has been working on cost savings efforts. The $5.1 billion promised by the Federal Transit Administration was less than what VTA had hoped for, triggering a push to close a projected $700 million to $1.2 billion funding gap.<\/p>\n The grand jury said there is \u201cno realistic plan to deal with foreseeable financial risks,\u201d raising concerns about the agency\u2019s reliance on two local sales tax measures and and uncertainty about federal support for the rail project.<\/p>\n Some of the issues are part of a longer, institutional problem, the grand jury said. VTA not following the recommendation of a 2019 civil grand jury report to reform its governance structure has also led to a \u201cweakening\u201d of the board\u2019s oversight of the project.<\/p>\n The previous grand jury called the agency one of the \u201cmost expensive and least efficient transit systems in the country.\u201d It criticized its structure, where board members are appointed from local city councils and the Santa Clara County Board of Supervisors and serve two-year terms, which leads to frequent turnover. VTA has been resistant to moving to an elected board despite its governance being the subject of a state audit and several other critical reports.<\/p>\n The current grand jury said that during its investigation, \u201csources repeatedly raised concerns about the level of knowledge and decision-making ability of the full VTA Board.\u201d<\/p>\n Struggling Bay Area transit agencies could further complicate problems. In April, the state issued a $590 million bailout to Caltrain, Muni, AC Transit and BART in hopes of sustaining service ahead of the November election when voters will weigh in on a regional sales tax measure. The state tapped into a pool of money set for capital projects like San Jose\u2019s BART extension, raising concerns for people like state Sen. Dave Cortese<\/a> who worry it could put the project\u2019s finances at risk.<\/p>\n The grand jury also pointed to weak BART ridership, which has yet to return to pre-pandemic levels, as a future financial concern. The first phase of BART\u2019s extension into Silicon Valley, which is made up of the Milpitas and Berryessa stations, has lost an average of $69 million annually during its first five years in operation, according to calculations by the grand jury. In January 2026, ridership was 86% below what was previously projected for the two stations.<\/p>\n Beyond the financial risks, the report also took aim at oversight of the project and said the agency\u2019s board has \u201cfailed to hold VTA staff accountable for missing deadlines to provide analysis and information\u201d requested by an oversight committee that was formed in 2023.<\/p>\n