Sound Transit is launching an agency-wide reset after revealing a $30–40 billion funding gap, forcing a reevaluation of major ST3 expansion projects—including the planned Ballard-to-SoDo light rail connection via a new downtown Seattle tunnel.

At last week’s board meeting, leaders formally adopted a set of principles to guide the “Enterprise Initiative,” a full-scale overhaul of Sound Transit’s long-range plans, finances, and delivery strategies. The move marks the most significant realignment effort since the early 2000s.

The downtown tunnel, one of ST3’s most expensive elements, is now under scrutiny. King County Councilmember Claudia Balducci said newer technology could increase capacity without new tunneling. Skipping the tunnel could accelerate West Seattle and Ballard timelines but would reduce redundancy and flexibility.

Broader impacts could hit other major segments, including the Everett, Tacoma Dome, and South Kirkland–Issaquah lines. A $5 billion increase in operating costs—covering new trains, maintenance, and service resiliency—may force the agency to phase projects more slowly or scale back elements like station count or segment length. A long-planned crossover track downtown, meant to reduce disruptions during service outages, is also at risk.

Seattle Mayor Bruce Harrell urged regional leaders to avoid a zero-sum approach, saying Seattle projects shouldn’t be deprioritized. Still, he acknowledged cost pressures demand “creative thinking.”