The fate of Yakima, Washington’s famed interurban railroad will be the subject of a city council meeting on January 20. The meeting comes a month after the city council decided not to offer the non-profit that operates the city-owned electric railroad, Yakima Valley Trolleys, an operating agreement for the new year.
During the December 9 meeting, the council considered offering the non-profit a five-year agreement starting January 1, as it has done for many years. However, the council decided to delay that discussion until this month as it evaluates its financial situation amid increasingly tight budgets. A week earlier, the council approved a 2026 budget that requires cutting $9 million from its current budget.
The actual operation of the trolley is fairly minimal for the city. According to Community Development Director Bill Preston, the proposed agreement called for the city to cover basic costs, such as heating and maintaining the city-owned trolley barn, and to set aside about $10,000 for any maintenance issues that might arise with the track or other city-owned property. But the bigger issue — and cost — is a major road construction project along the trolley route connecting the trolley barn with the rest of the line to the town of Selah. That street needs to be rebuilt, and for a time, the city considered paying the approximately $7 million it would cost to reinstall the rails and the catenary above. But with a budget crisis looming, some on the city council are questioning if that’s a wise financial decision. Because of that, the city council decided to wait on approving or denying an operating agreement until a decision was made on the road project. The road project is also expected to be discussed during the January 20 meeting.
Yakima Valley Transportation Company 298 made a rare appearance during what could be the railroad’s final day of operation on December 31. It was followed by line car A. Photo by David Honan.
Yakima Valley Trolleys is encouraging the public to attend the January 20 meeting to support the continued operation of the historic railroad. The meeting begins at 5:30 p.m.
Yakima Valley Transportation Company was founded in 1907. Starting as a streetcar line serving downtown Yakima, the company was acquired by Union Pacific predecessor Oregon-Washington Railroad & Navigation Company in 1909 with a goal of tapping the fertile agricultural resources of the region. Eventually, the system comprised over 40 route-miles radiating into surrounding communities, providing interurban passenger service and feeding freight traffic to the national rail network. Regular passenger service ended in 1947, and the remaining streetcars were scrapped or sold. Freight service continued until Union Pacific filed for abandonment in 1985 due to depleted traffic. The railroad was later acquired by the city.
With the future of the operation uncertain, on December 31, Yakima Valley Trolleys decided to roll out all the stops on the final day of its operating agreement. On New Year’s Eve, the railroad utilized all of its active equipment, including freight motor 298, which wears a UP-inspired livery as it has since the railroad’s heyday.
See more about what could have been the railroad’s final day of operation in the March 2026 edition of Railfan & Railroad.
—Justin Franz, with additional reporting by David Honan.
