Washington’s Yakima Valley Trolleys, the nonprofit responsible for running the city-owned interurban electric railroad that was once a subsidiary of Union Pacific, will start the new year without an operating agreement, putting the operation’s future in limbo. 

On December 9, the Yakima City Council discussed offering the non-profit a five-year operating agreement starting January 1, 2026, as it has done for many years. However, the council decided to delay that discussion until January 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 like heating and maintaining the city-owned trolley barn, plus setting 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. 

In the meantime, the nonprofit Yakima Valley Trolleys is encouraging the public to sign a petition supporting the operation and to ride some of its upcoming holiday excursions. 

—Justin Franz