BART’s Silicon Valley Phase II Project will create 75,000 jobs
and support the business competitiveness of the region
SAN JOSE, CA (July 2, 2024) – The Silicon Valley Leadership Group (SVLG), the leading business association representing the innovation economy and its ecosystem, today called on U.S. Transportation Secretary Pete Buttigieg to approve full federal funding for the BART Silicon Valley Phase II Project, a once-in-a-generation investment in the Bay Area’s infrastructure.
In a letter to Secretary Buttigieg, SVLG requested that the Federal Transit Administration accept the project into the Capital Investment Grant Program New Starts Engineering phase with a federal funding share of $6.296 billion, representing 49.4% of the total project cost.
“A federal match at the requested amount is the final piece needed to advance the project and to realize its significant economic multiplier benefits at the local, regional, state and national levels,” writes SVLG CEO Ahmad Thomas.
Phase II will be the largest single public infrastructure project ever constructed in Santa Clara County and is estimated to carry 55,000 passengers each weekday to destinations throughout the Bay Area by 2040. The project is projected to generate 75,000 jobs, promote more equitable transit connections in Silicon Valley, and yield important environmental benefits. The state and region have long prioritized this project, which is evident from the more than $1.8 billion in state and regional funding that have already been committed to the project. Over the last two decades, the residents of Santa Clara County have demonstrated extraordinary support for Phase II by generating $4.6 billion in funding via local tax measures to construct the project.
This investment will catalyze a high ROI project for all stakeholders, supporting the advancement of crucial transit-oriented development, including housing, and reduce greenhouse gas emissions by 19.5 tons each year.
Thomas notes that without the full federal funding commitment, the project will face indefinite delays and cost escalations.
“The negative economic repercussions would not only be felt by our region’s employers, but by so many of our residents – who have already invested directly over multiple decades to fund this important project. The fiscally prudent path is clear and to this end we request the U.S. Department of Transportation’s commitment as close to $6.296 billion as possible to bring this project to reality for the residents of San José and the greater Bay Area.”
The full letter text is below:
July 2, 2024
The Honorable Pete Buttigieg
Secretary, United States Department of Transportation
Office of the Secretary of Transportation
1200 New Jersey Ave. SE
Washington, D.C. 20590
Subject: Support for FTA’s Capital Investment Grant (CIG) Program New Starts Engineering process request for Santa Clara Valley Transportation Authority’s BART Silicon Valley Phase II Project (BSVII)
Dear Secretary Buttigieg,
On behalf of the Silicon Valley Leadership Group, I am writing in support of a vital infrastructure project for our region and for the broader innovation ecosystem. Specifically, we request that the Federal Transit Administration accept the Santa Clara Valley Transportation Authority’s BART Silicon Valley Phase II Project (Phase II) into the Capital Investment Grant (CIG) Program New Starts Engineering phase with a federal funding share of 49.4% of the project cost ($6.296 billion), as previously requested.
A federal match at the requested amount is the final piece needed to advance the project and to realize its significant economic multiplier benefits at the local, regional, state and national levels.
The Silicon Valley Leadership Group (SVLG) is a dynamic business association that represents hundreds of Silicon Valley’s most innovative companies on issues that affect the economic health and business competitiveness of our region. Supporting a robust, world-class public transportation system is critical to the sustainability and well-being of Bay Area communities and to the continued economic growth of the Bay Area and California as a whole.
The state and region have long prioritized this project, which is evident from the more than $1.8 billion in state and regional funding that have already been committed to the project. Over the last two decades, the residents of Santa Clara County have demonstrated extraordinary support for Phase II by generating $4.6 billion in funding via local tax measures to construct the project.
Phase II will be the largest single public infrastructure project ever constructed in Santa Clara County and is estimated to carry 55,000 passengers each weekday to destinations throughout the Bay Area by 2040. The project is projected to generate 75,000 jobs, promote more equitable transit connections in Silicon Valley, and yield important environmental benefits. This investment will catalyze a high ROI project for all stakeholders, supporting the advancement of crucial transit-oriented development, including housing, and reduce greenhouse gas emissions by 19.5 tons each year.
Furthermore, pre-construction activities for the project have progressed over the past two years, including purchasing the largest tunnel boring machine in the United States. Phase II is both shovel-ready and shovel-worthy, as evidenced by the inclusion of $500 million of project funds in the President’s FY 2025 budget.
Without the full federal funding commitment, the project will face indefinite delays and cost escalations.
The negative economic repercussions would not only be felt by our region’s employers, but by so many of our residents – who have already invested directly over multiple decades to fund this important project. The fiscally prudent path is clear and to this end we request the U.S. Department of Transportation’s commitment as close to $6.296 billion as possible to bring this project to reality for the residents of San José and the greater Bay Area. SVLG respectfully requests FTA fully meet the CIG request for VTA’s BART Silicon Valley Phase II Project (Phase II).
If you have any questions regarding this important project, its economic impact, or importance to our business community, please do not hesitate to contact me directly.
Thank you in advance for your support.
Sincerely,
Ahmad Thomas
CEO
Silicon Valley Leadership Group
cc: Veronica Vanterpool, Acting Administrator, Federal Transit Agency
Matthew Welbes, Executive Director, Federal Transit Administration
About the Silicon Valley Leadership Group:
The Silicon Valley Leadership Group (SVLG) is the leading business association representing the innovation economy and its ecosystem. Founded by David Packard of Hewlett-Packard, SVLG has worked for 45 years to address issues that affect the region’s economic health and quality of life. Today, SVLG Is focused on accelerating the next era of Silicon Valley leadership, activated by our three new Centers of Expertise (COE). Innovation & Technology, Sustainable Growth, and Inclusion & Belonging. SVLG members collectively provide nearly one of every three private sector jobs in Silicon Valley and contribute more than $3 trillion to the worldwide economy. For more information, visit svlg.org.
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