Yakima Valley Trolleys operating agreement faces delay

Yakima Valley Trolleys operating agreement talks are set to carry into 2026 without a resolution, leaving the nonprofit’s role operating the city-owned interurban electric railroad uncertain, as reported by Railfan & Railroad. The group runs Yakima’s trolley operation, which was once a subsidiary of Union Pacific.

Yakima City Council delays a five-year operating deal

On December 9, the Yakima City Council discussed offering the nonprofit a five-year operating agreement starting January 1, 2026, continuing a practice it has followed for many years—an item included in the Dec. 9, 2025 Yakima City Council agenda packet.

This is reported by the railway transport news portal Railway Supply.

The council chose to push the discussion to January while it reviews the city’s finances amid increasingly tight budgets. A week earlier, the council approved a 2026 budget that requires cutting $9 million from its current budget, as covered by KIMA-TV.

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Costs tied to the Yakima trolley barn and routine maintenance

For the city, the trolley’s direct operating impact remains fairly limited. Community Development Director Bill Preston said the proposed agreement would have Yakima cover basics such as heating and maintaining the city-owned trolley barn. It also called for setting aside about $10,000 for maintenance issues that might arise with the track or other city-owned property.

Road work on the trolley route raises bigger cost questions

The more difficult question is a major street reconstruction project along the trolley route that connects the trolley barn with the rest of the line to the town of Selah. That street needs to be rebuilt, and at one point the city considered paying about $7 million to reinstall the rails and the catenary above.

With a budget crisis looming, some on the Yakima City Council are questioning whether that expense is a wise financial decision. Because of that, the council decided to wait on approving or denying an operating agreement until a decision is made on the road project.

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

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