Regional Measure 2 (RM2) was approved by a majority of Bay Area voters in March 2004, raising toll rates by US$1 on the region's toll bridges.
US$135,000,000 (equivalent to $182,700,000 in 2019) was allotted to the Dumbarton Rail Corridor project from the increased tolls as one of the headline projects cited by supporters of RM2.
Construction on DRC was scheduled to start in 2006 with the passage of RM2.

MTC encountered cash flow issues for the BART Warm Springs Extension Project (WSX) in 2008; the expected US$145,000,000 (equivalent to $172,200,000 in 2019) surplus in fare revenue from the BART SFO extension was not available for the start of construction on the Warm Springs extension, and the funding shortfall was made up in part by proposing a shift of US$91,000,000 (equivalent to $108,100,000 in 2019) in RM2 funds from DRC to WSX.
The draft Strategic Plan amending Resolution 3434 was presented in June 2008, placing projects in four tiers, depending on their state of readiness.
WSX was deemed to be a "Tier 2" project, meaning it required more scope or cost refinement.
DRC was a "Tier 4" project, meaning that its capital shortfall was greater than 50% of its total cost.
The 2008 estimate for DRC capital costs was US$596,000,000 (equivalent to $707,700,000 in 2019), compared to the nearly US$300,000,000 (equivalent to $406,100,000 in 2019) in available funding that had been committed with the passage of RM2 in 2004.
Since the recommended strategy going forward was to focus on delivering Tier 2 projects, MTC Staff recommended shifting the money from DRC to WSX.
The proposal was met with considerable antipathy.
DRC would be repaid in Alameda County Regional Transportation Improvement Program funds over eight years, from FY 2019–20 to 2026–27, without accounting for inflation.
The majority of public speakers in a July 2008 argued against the funding transfer, saying that funds dedicated for transbay travel should remain dedicated to transbay projects.

In September 2008, MTC Vice Chair Scott Haggerty defended the shift, arguing that "The bottom line is that the Warm Springs BART extension is ready to go and the Dumbarton Rail project is not."
Others questioned the need for DRC, as the expected growth in road traffic over the Dumbarton Bridge had failed to materialize.
MTC was required to hold a public hearing to approve reassignment of funds, which occurred on 14 January 2009.
The DRC to WSX funding shift was met with more public opposition, who questioned both the legal authority of MTC to reassign these funds and the strength of MTC's commitment to DRC.
California Streets and Highways Code Section 30914(f) gives MTC the authority to reallocate funds "to another project within the same bridge corridor," and the WSX does not provide the same transbay service as DRC.
Regardless, MTC unanimously approved the funding shift after the public hearing and withstood a subsequent legal challenge.
A suit was filed seeking an injunction to block the transfer of funds, but the suit was rejected.
MTC went on the offensive after the suit was rejected, threatening the plaintiffs with "any and all available remedies," and the plaintiffs dropped their lawsuit.

With the loan of $91 million to WSX, Dumbarton Rail retained $44 million in RM2 funds.
Alameda County Measure B1, which would have restored US$120,000,000 (equivalent to $133,600,000 in 2019) via a half-cent sales tax increase, failed to pass in 2012.
In February 2014, MTC's Programming and Allocations Committee advanced a recommendation to redirect the remaining money from Dumbarton Rail to other projects; $9 million had already been spent on environmental studies for DRC, leaving 
$35 million, which would be redistributed with $20 million going to Caltrain Electrification and $15 million going to replace Dumbarton Express buses.
The February presentation also redefined the $91 million loan as an "investment in BART to Warm Springs" with "No future repayment from Alameda County" necessary.
The $20 million for Caltrain electrification was predicated on Caltrain receiving local matchin
Regional Measure 2 (RM2) was approved by a majority of Bay Area voters in March 2004, raising toll rates by US$1 on the region's toll bridges. US$135,000,000 (equivalent to $182,700,000 in 2019) was allotted to the Dumbarton Rail Corridor project from the increased tolls as one of the headline projects cited by supporters of RM2. Construction on DRC was scheduled to start in 2006 with the passage of RM2.
MTC encountered cash flow issues for the BART Warm Springs Extension Project (WSX) in 2008; the expected US$145,000,000 (equivalent to $172,200,000 in 2019) surplus in fare revenue from the BART SFO extension was not available for the start of construction on the Warm Springs extension, and the funding shortfall was made up in part by proposing a shift of US$91,000,000 (equivalent to $108,100,000 in 2019) in RM2 funds from DRC to WSX. The draft Strategic Plan amending Resolution 3434 was presented in June 2008, placing projects in four tiers, depending on their state of readiness. WSX was deemed to be a "Tier 2" project, meaning it required more scope or cost refinement. DRC was a "Tier 4" project, meaning that its capital shortfall was greater than 50% of its total cost. The 2008 estimate for DRC capital costs was US$596,000,000 (equivalent to $707,700,000 in 2019), compared to the nearly US$300,000,000 (equivalent to $406,100,000 in 2019) in available funding that had been committed with the passage of RM2 in 2004. Since the recommended strategy going forward was to focus on delivering Tier 2 projects, MTC Staff recommended shifting the money from DRC to WSX. The proposal was met with considerable antipathy. DRC would be repaid in Alameda County Regional Transportation Improvement Program funds over eight years, from FY 2019–20 to 2026–27, without accounting for inflation. The majority of public speakers in a July 2008 argued against the funding transfer, saying that funds dedicated for transbay travel should remain dedicated to transbay projects.
In September 2008, MTC Vice Chair Scott Haggerty defended the shift, arguing that "The bottom line is that the Warm Springs BART extension is ready to go and the Dumbarton Rail project is not." Others questioned the need for DRC, as the expected growth in road traffic over the Dumbarton Bridge had failed to materialize. MTC was required to hold a public hearing to approve reassignment of funds, which occurred on 14 January 2009. The DRC to WSX funding shift was met with more public opposition, who questioned both the legal authority of MTC to reassign these funds and the strength of MTC's commitment to DRC. California Streets and Highways Code Section 30914(f) gives MTC the authority to reallocate funds "to another project within the same bridge corridor," and the WSX does not provide the same transbay service as DRC. Regardless, MTC unanimously approved the funding shift after the public hearing and withstood a subsequent legal challenge. A suit was filed seeking an injunction to block the transfer of funds, but the suit was rejected. MTC went on the offensive after the suit was rejected, threatening the plaintiffs with "any and all available remedies," and the plaintiffs dropped their lawsuit.
With the loan of $91 million to WSX, Dumbarton Rail retained $44 million in RM2 funds. Alameda County Measure B1, which would have restored US$120,000,000 (equivalent to $133,600,000 in 2019) via a half-cent sales tax increase, failed to pass in 2012. In February 2014, MTC's Programming and Allocations Committee advanced a recommendation to redirect the remaining money from Dumbarton Rail to other projects; $9 million had already been spent on environmental studies for DRC, leaving 
$35 million, which would be redistributed with $20 million going to Caltrain Electrification and $15 million going to replace Dumbarton Express buses. The February presentation also redefined the $91 million loan as an "investment in BART to Warm Springs" with "No future repayment from Alameda County" necessary. The $20 million for Caltrain electrification was predicated on Caltrain receiving local matchin
Dumbarton Rail Corridor