Last week, transit advocates raised alarm bells that Gov. Gavin Newsom was dragging his feet on finalizing $750 million loan included in the state budget to prevent serious service cuts to Bay Area transit.

But just as advocates were gathering in San Francisco’s Civic Center Plaza for a rally to push Newsom to authorize the loan on Monday morning, the governor’s office released a statement saying that the loan isn’t dead — yet.

“We are working closely with all stakeholders on the parameters of a funding deal,” the statement read. “Our shared goal is to agree on the terms of a deal by this fall.”

That could mean that Newsom is holding out on the loan as a bargaining chip over lawmakers before the end of the session, a tactic he has used before.

The budget is one of the only areas where

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