Palo Alto Link Program
& Transit Futures
Study Session
March 2, 2026 – City Council Meeting Item #3 www.paloalto.gov
2 Regional Transit Context
• Federal funding has long prioritized highways
• PA’s location at the edge of Santa Clara County
presents unique first / last-mile challenges
• Regional coordination needed
3 Shuttle Program Background
• 1999-2014, 2016-2020
(Crosstown & Embarcadero
routes only)
• 2014-2016 (EPA route added)
• 2017 Draft Transit Plan
(Expansion plan / options,
including SPA, not shown)
4 Palo Alto Link Background
• Aug. 14, 2017 Council direction to explore flex transit model • Nov. 8, 2022 Receipt of VTA Innovative Transit Service Grant • Mar. 7, 2023 Service Start with Via (Nomad)
• Various service refinements made in response to Council and public feedback
• Jun. 16 and 17, 2025, Council discussed service continuation considering unknown grant funding awards
5 • On demand
• 7am to 7pm M-F
• Point-to-point or door-to-
door (seniors / people with
disabilities)
• Serves most of Palo Alto
(exc. Baylands, Palo Alto Hills)
Palo Alto Link Service
6 Recent Policy Direction
• Jun. 16, 2025 Council authorized funding extension of the Palo Alto Link (PAL) On Demand Transit Services program for up to 6 months (assuming all grant funds expended)
• Jun. 17, 2025 Council authorized contract renewal with Nomad Transit through June 30, 2026 (considering potential VTA Innovative Transit and Air District TFCA awards)
• Directed staff to consider and present termination
implications and alternate service options by end of 2025.
7 Recent Funding History
• Initial VTA Innovative Transit funding expired 6/30/2024 • Final round of TFCA funding will be expended by 6/30/2026 • General Fund share would need to substantially increase beyond 6/30/2026
7/1/2025-6/30/2026
Grants (TFCA) $456,500
Stanford Research Park (SRP) Up to $600,000
Fares $35,000 - $50,000
General Fund $0 - $250,000
Estimated Expenses $960,000
Strategy
No change
Palo Alto Link
with Lower
Subsidy
Resume Palo
Alto Shuttle
TNC subsidy
8 Service Options
Strategy Description Ridership Impact Cost & Funding
No change $4/trip, 18-25 minute wait, 15-20% unavailable No change $1.2M/year, ~$0.5M from SRP Palo Alto Link
with Lower
Subsidy
Increase fares Decrease Limited reduction
Retain fares, reduce driver hours Decrease Limited reduction Restrict to discounted fares 50-80% decrease Limited reduction Prioritize discounted fares and pre-booking 20-40% decrease Limited reduction Prioritize shifting riders to available transit 6% available No cost reduction Resume Palo
Alto Shuttle
Embarcadero shuttle Unknown increase $1.1M, No funding partnership Crosstown shuttle Unknown increase $0.8M, No funding partnership South Palo Alto (Cal Ave to VA) shuttle Unknown increase $0.8M, No funding partnership TNC subsidy 24/7 Service for Just Vulnerable Users Unknown Discontinues SRP partnership
9 Feedback on Palo Alto Link
PTC – November 2025
Values
• Meets many community member
needs (especially families with
special needs)
• Prioritize vulnerable users
• Capture lessons learned for
future services
Community Members / Users
• Service availability and accurate
time estimates are important
• App based service can be
difficult for seniors with
disabilities
• Increased span of coverage
desired (beyond City borders)
• Increased span of service desired
(weekend and evenings)
9 Fiscal Impact / Summary
• Current fiscal implications
o Per trip cost: $26
o 5% of operating costs covered by fares
o Key funding partnership (~$500,000 per year) with SRP • Winding down by June 30, 2026
o Saves ~$250,000 in FY 2026-27
o Saves ~$700,000 per year in FY 2027-28 & beyond
o Results in loss of ~$425,000 to $575,000 in SRP
partnership
10 Discussion for Transit Future
• What feedback do you have on service performance and
transit funding options as Palo Alto Link concludes June 30, 2026?
Nate Baird
Transportation Planning Manager
Office of Transportation
[email protected]
650-329-2340