VTA’s BART Silicon Valley Phase II Extension Project – Summer 2025

July 8, 2025

BSVII Project Update  

The BART Silicon Valley Phase II (BSVII) project is making steady progress after achieving a significant milestone in late 2024 with the Federal Transit Administration (FTA) accepting the project into the final phase of the federal funding process known as New Starts Engineering. The FTA has committed $5.1 billion to the project, which is the second-largest award ever received through the Capital Investment Grant Program. This tremendous financial support sets a strong foundation for the project, allowing VTA to concentrate on aligning project costs with the available budget.   

Efforts are underway to address three key challenges: bridging a $700 million to $1.2 billion funding gap, ensuring contractors can build within VTA’s budget, and securing a Full Funding Grant Agreement (FFGA) with the FTA. Before VTA can submit an application, the project budget must be balanced. VTA is considering when the most optimal timing of this application will be, while the new Federal administration sets funding transportation infrastructure priorities, and other states submit their applications.   

$100M in New State Funding Approved for BSVII

VTA is excited to share that the California Transportation Commission (CTC) has approved $100 million in new state funding for the BSVII Project.

The CTA awards include:

$25M from the 2025 Local Partnership Competitive Program (LPP) for early-stage construction, including tunnel prep, utility relocations, and site work.

$75M from the 2025 Solutions for Congested Corridors Program (SCCP) for key improvements at the 28th Street/Little Portugal Station and Newhall Yard, including excavation and foundation work.

These funds represent a critical step toward closing the remaining funding gap and bringing BART deeper into the heart of Silicon Valley—connecting more people, supporting a greener future, and improving regional mobility.

Read more about this new funding in our Blog: VTA to Receive $100M in State Grants for BART Silicon Valley Phase II

VTA Pushes Cost Strategy Forward with Recommendation for BART Tunnel Contractor Change

The Santa Clara Valley Transportation Authority (VTA) Board of Directors voted unanimously on June 27, 2025 to accept staff’s recommendation to pursue a new tunnel contractor for the BART Silicon Valley Phase II Extension (BSVII), as part of a broader effort to control costs and keep the project on a financially sustainable path. This action follows the Oversight Committee’s approval of the same recommendation at its June 12, 2025 meeting.

“While it is never easy to part ways with a contractor, I strongly support VTA’s effort to find efficiencies and control costs to move this once in a generation project forward. We don’t have a blank check for this project, and it’s important that everyone—from the agency to its contractors—is held accountable for staying within budget,” said San Jose Mayor Matt Mahan, Vice Chair, VTA Board of Directors.

Current contractor Kiewit Shea Traylor (KST) was unable to meet budget expectations and VTA staff believe a new procurement should be considered to find savings and avoid cost increases associated with KST’s price proposal for the tunnel work.

Through confidential discussions, multiple nationally recognized tunneling contractors affirmed their strong interest in partnering with VTA to deliver a technically sound, efficient tunnel solution. These firms expressed confidence in their ability to meet the project’s engineering requirements while aligning with VTA’s budget framework, reinforcing the agency’s strategy to control costs without compromising on quality or safety.

KST will complete the early BART to Silicon Valley construction activities already underway including building the portal for future tunnel work. Today’s vote marks the first in a series of cost-saving actions that VTA staff will bring forward to the Board in the months ahead.

Project Costs Savings Measures Underway 

Since Fall 2024, VTA continues to pursue strategies to reduce overall project costs and close the remaining funding gap, with updated cost-saving ideas to be presented to VTA’s Board of Directors throughout Summer 2025. Cost reduction efforts are being carried out in multiple levels:

Level 1 and Level 2 concepts identified approximately $400 million in potential savings, with Level 2 concepts involving cross-disciplinary coordination and deeper technical evaluation.

Level 3 efforts focus on reevaluating design assumptions, tunnel configuration, and construction methods. A dedicated Tunnel Task Force of tunneling and underground construction experts provides critical local and regional insight.

These strategic efforts underscore VTA’s commitment to delivering the BSVII project within budget while maintaining high standards of design and operational efficiency.  

Tunnel Task Force

As part of the ongoing costs savings efforts, a dedicated Tunnel Task Force has also been established comprised of subject matter excerpts in tunneling, underground construction, and local experience to ensure ideas are considered with a critical local and regional lens.

VTA is evaluating various factors before determining which ideas to proceed with. This includes technical feasibility, constructability (including public impacts during construction), schedule, and considerations for the cost of time (including redesign and cost of delays). All these factors will be considered before making any changes to the current tunnel configuration and methodology approach.

Construction Updates

Construction activities continued to be focused on the west end (near the Newhall Yard and Maintenance Facility, as shown below) of the BSVII project corridor, where the tunnel launch site is located between Brokaw Road and I-880. Since June 2024, VTA has been conducting site prep work, including improvements to drainage, roads, utilities, and fencing, while collaborating closely with local stakeholders. 

Local Media Behind the Scenes Tour of BSVII West Portal Construction Site 

Local reporters were recently invited to a project update and behind-the-scenes tour of the West Portal construction site at the Newhall Yard & Maintenance Facility. The tour highlighted exciting progress on the launch structure that will support the future Tunnel Boring Machine (TBM) as it begins excavating the five-mile underground tunnel for BART Silicon Valley Phase II.

Detention Basin Construction Completed

As part of VTA’s stormwater management system, a new detention basin is being built to help reduce flooding, control erosion, and improve water quality. These basins temporarily store rainwater during storms, filter out dirt and pollutants, and gradually release water into the drainage system. Construction activities include soil excavation, pile driving, and concrete placement. Nearby residents may notice equipment such as excavators, dump trucks, and concrete pumps in use as the project progresses.

Launch Structure Update

Construction activities at the West Portal site will continue to occur Monday through Saturday from 6 a.m. to 4 a.m.

Noise Curtain Installed

Ongoing tunnel preparation work at the Newhall Yard and Maintenance Facility may result in increased noise, traffic, and nighttime activity in the area. A 16-and 24-foot temporary noise curtain is being installed adjacent to the railroad tracks to reduce noise from construction activities and help protect the residential communities. Construction crews are advancing the construction of the tunnel launch structure, which requires extended work hours.

Daytime work will include:

Site Preparation: Crews will dig, drill, and level the ground. Expect visible equipment and light drilling noise.

Tunnel Wall Foundations: Deep holes will be filled with steel and concrete to support tunnel walls. Some loud noise is expected.

Crane Assembly: Large cranes are being assembled to lift heavy equipment. Anticipate noise from metal and machinery.

Guide Walls: Crews will build guide walls to direct machines used for underground support wall construction.

Day and night will include:

Improving Ground Support: Crews will mix cement and soil to strengthen the ground. Expect continuous noise from drilling and mixing

Support Wall Construction: Work includes excavation, crane operations, and concrete pouring for underground support walls.

Increased Roadway Activity: Expect additional project-related trucking activity on Newhall Drive, Coleman Avenue and Brokaw Road.

Downtown San José Demolition Activities Set to Begin

Mulitple VTA-owned buildings must be demolished to make way for construction of the future Downtown San José BART Station. These buildings are currently vacant . Clearing the sites now allows demolition work to be completed ahead of key 2026 events, including Super Bowl LX, March Madness, and the FIFA World Cup.

Preparations are underway, including fencing, signage, lighting, and dust control, along with staging areas, access roads, and on-site security.Noise, air quality, and vibration will be monitored to reduce community impacts.

The building on the northwest corner of E. Santa Clara and 13th Streets is expected to be removed in late summer followed by the old courthouse building along 1st Street north of E. Santa Clara Street in the fall. Both are targeted for completion by the end of 2025. The old Chase Bank and a building on the corner of 3rd Street and E. Santa Clara are scheduled for removal no earlier than the fourth quarter of 2026.

In the meantime, VTA has contributed funds towards the San Jose Downtown Association’s Santa Clara Street Beautification project.

Demolition progress will be shared in VTA’s monthly construction updates.

BSVII in the Community

BSVII team members were proud to take part in San José’s Viva Calle event, connecting with neighbors and sharing updates on the BSVII Project. Events like this remind us: we don’t just work here—we live here too.

We’re engineers, outreach coordinators, planners, and project managers—and we’re also cyclists, parents, local shoppers, and community members. We’re committed to building a project that reflects the values and voices of the people it serves.

Thank you to everyone who stopped by to say hello—we’re grateful to be part of this vibrant community.

BSVII at Viva Calle: connecting with community.

BSVII Team Member Spotlight

Behind the BSVII Project is a dedicated team of people working hard to deliver a project that connects and serves our community for generations to come.

Starting with this issue of our quarterly newsletter, we’re launching a regular Team Member Spotlight to introduce you to some of the individuals bringing this historic project to life. These are the people behind the plans—many of whom live, work, and raise families right here in the Bay Area.

First up: Tom Maguire, who’s leading the effort to deliver BSVII with focus, transparency, and a deep commitment to community connection.

Tom Maguire, Chief Megaprojects Delivery Officer – BART Silicon Valley Phase II

Tom Maguire leads the delivery of the BSVII Project—one of the most complex transit undertakings in the region. With over two decades of experience in transportation, Tom joined VTA in late 2023 to guide the project through key milestones, including securing federal funding, refining design, and overseeing major construction contracts.

Before coming to VTA, Tom led major infrastructure projects for the San Francisco Municipal Transportation Agency, including the Central Subway and Van Ness Bus Rapid Transit. He also previously worked at the New York City Department of Transportation, where he focused on transit innovation and sustainability.

“This project is about more than concrete and tunnels— it’s about connecting the South Bay with the rest of the Bay Area in a way that expands opportunity for everyone. I’m proud to help deliver a project that will serve our region for generations to come.”

Tom is currently focused on delivering early construction elements—like the tunnel launch structure—while reshaping the contracting strategy to keep the project on track and fiscally responsible. His leadership helps ensure BSVII is built with both technical excellence and community trust.

Stay Informed!

Project team members have been meeting with key neighbors and stakeholders to share updates and gather input. Outreach efforts have included canvassing, presentations to residents, and coordination with nearby institutions and property owners.