Rider, Transit Coalition Hails Legislative Victory for SB 63 Transit Funding Measure

FOR IMMEDIATE RELEASE

Contact
Voices for Public Transportation
Abibat Rahman-Davies

Sep 15, 2025

SAN FRANCISCO—Voices for Public Transportation, a coalition of community groups, transit advocates and riders, unions, and policy organizations, applauds the passage of Senate Bill 63 (Wiener, Arreguin) that enables a regional funding measure to save Bay Area transit from devastating cuts. 

Our transit agencies are facing an imminent fiscal cliff. Without a new funding measure, they will be forced to gut critical rider services and eliminate jobs. Ridership will plummet. Revenue will crater. This downward spiral will paralyze the Bay Area, exclude communities from affordable travel options to jobs, doctors, school, and destroy any chance of meeting our climate goals.

SB 63 prevents this nightmare scenario by establishing a five-county ballot measure that would authorize a new source of revenue for Bay Area transit agencies. In addition to supporting service frequency, this legislation includes improvements for riders through provisions for integrated, affordable fares, coordinated paratransit and accessible signs, and faster, more reliable buses.

“SB 63’s passage marks a major victory in our fight to save the Bay Area’s vital transit networks from disastrous cuts,” said Transform’s Transportation Policy Manager Abibat Rahman-Davies. “Senators Scott Wiener and Jesse Arreguin showed true leadership when it mattered most. Now Governor Newsom must act—sign SB 63 and help us build the sustainable transit Bay Area families deserve.”

Public transit is essential to a healthy, affordable, and thriving Bay Area.

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Voices for Public Transportation was founded in 2018 to advance game-changing regional transportation measures to invest in our transit system so that all Bay Area residents can get around affordably and easily while protecting the climate. VPT represents the voices of all transit riders and riders-to-be, and centers transit-dependent communities, many of whom are people with disabilities, low-income communities, and communities of color, who are too often excluded from local and regional transportation decisions.

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Transform Announces Zack Deutsch-Gross as New Executive Director

September 10, 2025

Contact:

Jame Ervin
Board Co-Chair, Transform
[email protected]

Oakland, CA — Transform, a leading Bay Area nonprofit advancing transportation and housing justice, is proud to announce that Zack Deutsch-Gross will be its new Executive Director, effective September 23, 2025.

Deutsch-Gross has been Transform’s Policy Director since 2022. During that time, he has spearheaded campaigns that led to major advocacy wins, forged powerful coalitions, and helped craft a bold vision for a more just, sustainable, and connected California. His leadership has played a central role in ongoing discussions about regional and statewide policies to preserve funding for affordable housing, save Bay Area transit from fiscal collapse, and move our state transportation policy beyond highway widening.

“Zack is exactly the leader Transform needs in this moment, following Jenn’s fantastic leadership,” said Warren Logan, Transform board member. “He brings a deep understanding of our work, strong relationships with our partners, and a clear vision for how Transform can continue to lead transformative change in the Bay Area and beyond. Zack’s fierce advocacy is just what the transportation, housing, and environmental movements need as our communities face incredible challenges ahead.”

Born and raised in the Bay Area, Deutsch-Gross holds a Master of Public Policy from UC Berkeley and has worked extensively on the front lines of climate and mobility justice. He is committed to deepening Transform’s work in racial equity, community engagement, and structural change.

Deutsch-Gross succeeds Jenn Guitart, who has served as Executive Director since 2022. Guitart will work with Transform through the end of the year in a part-time advisory capacity.

“I’m incredibly honored to step into this role,” said Deutsch-Gross. “When even mentioning ‘equity’ and ‘climate change’ risks federal backlash, our work to reshape housing and transportation to center community needs and combat the climate crisis is more important than ever. 

“Transform’s work to center equity and climate in housing and transportation decision making responds directly to the needs of this political moment. I’m excited to continue the work Jenn and past leaders started, in collaboration with our stellar team and partners.”

ac transit bus

New Economic Study Finds Gross Receipts Tax on Top 2% of Big Businesses Will Prevent Collapse of Bay Area Public Transit Agencies

FOR IMMEDIATE RELEASE
Wednesday, July 2, 2025

CONTACT: 
Ryan Williams
(510) 590-2782‬
[email protected]

Analysis shows a gross receipts tax will generate nearly 1 1/2 times more funds annually than a regressive sales tax, which polls poorly

SACRAMENTO, CA – Today, Bay Area Forward released a new economic analysis that shows Bay Area public transit can be fully funded by a gross receipts tax on only the top 2% of Bay Area businesses.

Local transit agencies are facing at least $800 million in an annual operating deficit beginning next year that could lead to massive service cuts, widespread congestion and delays, and layoffs of highly-skilled transit workers.

The economic analysis, conducted by Blue Sky Consulting Group, estimates only 18,180 Bay Area establishments in Alameda, Contra Costa, San Mateo, and San Francisco counties – or 2.4% of local businesses – will pay into the gross receipts tax. Together, these 18,000 businesses generate $591 billion in gross receipts with the average qualifying business generating about $32.5 million. Under the proposed average tax rate of 0.136%, a business with $32.5 million in gross receipts would pay just $37,290.

Because the tax includes an exception for small businesses with under $5 million in gross receipts, about 98% of Bay Area businesses will pay nothing.

“The vast majority of businesses will not be affected by this gross receipts tax due to the five million dollar exemption,” said Ryan Williams, Board Member of Bay Area Forward. “The Trump-era corporate tax cuts that these top two percent of businesses received far outweigh the less than one percent tax they will pay to save Bay Area public transit and our local economy.”

Senate Bill 63 currently would allow a sales tax measure to be placed on the 2026 ballot to support transit agencies in the Bay Area. But a study by MTC, the Metropolitan Transportation Commission, shows that a sales tax will raise only $560 million annually, leaving a gaping hole in Bay Area transit agency budgets.

Bay Area Forward is working with the Legislature to amend SB 63 to replace the regressive sales tax with a gross receipts tax on big businesses. This would shift the financial burden from working people and small businesses onto big corporations to raise $800 million per year in stable, long-term funding for Bay Area transit operations.

“With a sales tax, many small businesses will see their tax liability increase, along with local residents already paying some of the highest sales tax rates in the country,” said Laurel Paget-Seekins, Senior Policy Advocate at Public Advocates. “According to this analysis, a gross receipts tax is the most effective revenue source to solve the funding crisis for Bay Area transit without asking working families, seniors, students, and small businesses to pay more.”

The economic analysis can be viewed here.

Last week, at a Bay Area Forward press conference, Senator Scott Wiener announced a budget deal that preserved $750 million in the budget for vital “bridge funding” for Bay Area public transit until a ballot measure can be passed in 2026. While the new funding provides much-needed relief for transit agencies, it must be repaid to the State – underscoring the importance of passing a 2026 regional ballot measure that fully addresses ongoing budget gaps.

Multiple polls indicate weak support for a sales tax with the cost of living a top concern. But a recent Bay Area Forward poll on a regional transit measure showed that a gross receipts tax garnered more than 60% support among likely 2026 voters

For more information on Bay Area Forward, please visit BayAreaForward.com.

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Bay Area Forward is dedicated to strengthening and modernizing our public transportation system in the Bay Area and making it more equitable, affordable, safe, and reliable so that Bay Area residents, businesses, the environment, and the economy can thrive.

The founding member organizations of Bay Area Forward include AFSCME Council 57, AFSCME Local 3993, AFSCME Local 3916, Amalgamated Transit Union Local 1555, Amalgamated Transit Union Local 192, Service Employees International Union 1021, SMART – Transportation Division, Transport Workers Union Local 250A, United Auto Workers (UAW) Region 6, and dozens of community groups that are part of the Voices for Public Transportation coalition, including Transform.


Legislature’s response to the California budget provides a lifeline for transit, invests in housing, and ignores biking and walking

FOR IMMEDIATE RELEASE

Contact: Zack Deutsch-Gross, [email protected], (415) 637-0101

California legislators have agreed on a budget that prioritizes needed investments in affordable housing and provides a lifeline to Bay Area transit agencies facing fiscal cliffs. However, by prioritizing highways over active transportation, the budget misses a major opportunity to meet the scale of the climate crisis.

The two-party agreement in the legislature invests $500 million in Low-Income Housing Tax Credits (LIHTC) and $120 million to the Multifamily Housing Program, rejects the Governor’s proposal to cut $1.1 billion from transit programs, and provides Bay Area transit agencies with a $750 million loan to keep buses and trains running as they seek long-term operating funds.

“We applaud the legislature’s commitment to affordable housing and keeping our transit agencies afloat,” said Transform Policy Director Zack Deutsch-Gross. “These vital investments keep the Bay Area on track toward a 2026 regional transportation measure, which depends on the legislature passing SB 63 authorizing legislation later this year.”

However, the proposal fails to address the $400 million cut from California’s Active Transportation Program in last year’s budget. As a result, only 13 of the over 300 project applications to promote safe biking and walking will move forward.

“Instead of shifting dollars toward sustainable transportation alternatives, this proposal continues to fund Caltrans’ highway expansion agenda,” said Deutsch-Gross. “Even in tight budget years, the climate crisis demands more than preserving the status quo.”

While the legislature’s proposal does not mention reauthorizing Cap-and-Trade, now Cap-and-Invest, it does allocate $500 million to CalFIRE from the Greenhouse Gas Reduction Fund, limiting GGRF’s ability to support affordable housing, transit, and environmental justice priorities.

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Transform works to ensure that people of all incomes thrive in a world safe from climate chaos. We envision vibrant neighborhoods, transformed by excellent, sustainable mobility options and affordable housing, where those historically impacted by racist disinvestment now have power and voice.

New Polling Shows Path Forward for Regional Transportation Funding Measure

A poll commissioned by Bay Area Forward, an alliance of labor unions and transportation advocates, found that Bay Area residents want to save public transit and favor a gross receipts tax on businesses to provide a secure funding source. Transform, which is a founding member of the alliance as part of the Voices for Public Transportation Coalition, has long advocated for a progressive funding mechanism such as a gross receipts tax, rather than a regressive sales tax. 

A strong majority of 61% supports the gross receipts tax. Before we can place a gross receipts tax measure on the ballot, however, we need state authority. Transform will be working hard to add an amendment to SB 63, the measure sponsored by Senators Arreguin and Wiener, to replace the sales tax with a gross receipts tax for Bay Area transit funding. 

Poll results

Coalition statement on polling

Bay Area Forward, a New Transit Alliance, Launches to Advocate Big Business Pay Their Fair Share to Fund Transportation

Community and labor organizations release new polling showing strong voter support for a business tax as the funding mechanism for a 2026 regional transit ballot measure.

FOR IMMEDIATE RELEASE

CONTACT: Ryan Williams, (510) 590-2782‬, [email protected]

OAKLAND, CA – Bay Area Forward, a new transit alliance consisting of labor unions, transit advocates, and climate, bike and pedestrian groups, announces its formation to strengthen and modernize Bay Area public transportation and urges the State Legislature to use a business gross receipts tax as the funding mechanism for the measure following poll results that show strong voter support.

“BART, SF Muni, Caltrain, and AC Transit are careening toward a fiscal cliff that would upend our economy and the lives of Bay Area residents,” said Richard Marcantonio of Public Advocates and the Voices for Public Transportation coalition, and board member of Bay Area Forward. “Voters want to save transit, but utilizing a sales tax won’t raise enough to solve the crisis.”

A recent poll, conducted by FM3 Research on a regional transit measure, asked likely November 2026 voters in Alameda County, Contra Costa County, San Francisco, and San Mateo County whether big business should pay their fair share to support public transit.

The results are clear: for the first time in five years of polling, a revenue source supporting regional transit needs broke 60% support with a business gross receipts tax initially polling at 61%.

After both positive and negative messaging, the business gross receipts tax ended with +21% net support (57-36%) while the sales tax was +10% (55-45%). Importantly, in places where polls show the sales tax option is failing, such as San Mateo County (47-53%), the business gross receipts tax polled at a whopping +27% net support (60-33%).

Business gross receipts is not a source of revenue normally available to most counties for transit needs, except with state authorization. Because SB 63, authored by Senators Jesse Arreguín and Scott Wiener, is necessary to authorize the regional measure, the Legislature can choose a county level business gross receipts tax to fund the transit measure.

“We urge the Legislature to amend the funding mechanism in SB 63 to a gross receipts tax instead of a sales tax,” said Jesse Hunt, President of ATU Local 1555 and board member of Bay Area Forward. “Utilizing this source is a win-win approach providing funding for regional transit agencies while protecting sales tax revenue for other important local needs.”

The aftermath of the COVID-19 pandemic shifts in work patterns and the Trump Administration’s attacks on transit have created a perfect storm threatening the very foundation of the public transportation network in the Bay Area. The Metropolitan Transportation Commission projects that without new revenue sources, Bay Area transit agencies could face annual deficits exceeding $915 million annually starting as early as 2026, leading to massive service cuts, the elimination of transit as a viable transportation option for Bay Area residents, and widespread congestion and delays.

Bay Area Forward is dedicated to strengthening and modernizing our public transportation system in the Bay Area and making it more equitable, affordable, safe, and reliable so that Bay Area residents, businesses, environment, and the economy can thrive.

The founding member organizations of Bay Area Forward include AFSCME Council 57, AFSCME Local 3993, AFSCME Local 3916, Amalgamated Transit Union Local 1555, Amalgamated Transit Union Local 192, Service Employees International Union 1021, SMART – Transportation Division, Transport Workers Union Local 250A, United Auto Workers (UAW) Region 6, and dozens of community groups that are part of the Voices for Public Transportation coalition.

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Housing and Transportation Advocates Raise Alarm Over May Revise

FOR IMMEDIATE RELEASE

May 14, 2025

Media Contact:  Zack Deutsch-Gross, Policy Director, Transform, [email protected], 415.637.0101

Karen Whitaker, Communications Director, Enterprise Community Partners, [email protected], 213.787.8236

Governor’s Cap-and-Invest proposal undercuts vital affordable housing and transportation commitments

Our organizations are deeply concerned that the Governor’s May Revised Budget Proposal does not commit to maintaining the continuous appropriations of the Greenhouse Gas Reduction Fund (GGRF) to the Affordable Housing and Sustainable Communities Program (AHSC), the Transit & Intercity Rail Capital Program (TIRCP), and the Low Carbon Transit Operations Program (LCTOP). 

Since the inception of all three programs in 2014, AHSC has helped fund over 20,000 affordable housing units near transit, plus related transportation improvements and mitigated over 5.7 million tons of greenhouse gases. TIRCP has funded over 250 transformative transit capital projects to modernize rail, bus, and ferry projects. LCTOP has funded over 1,100 operating and capital assistance projects to more than 200 public transit agencies across California, primarily benefiting disadvantaged communities.

“We urge lawmakers to preserve the continuous appropriations for affordable housing and public transit in final budget negotiations. These investments are vital to fighting climate change and the affordability crisis for low-income Californians,” said Zack Deutsch-Gross, Policy Director at Transform.

Ongoing investments in these critical housing and transportation programs are fundamental to the state’s ability to reduce carbon emissions and improve quality of life. Housing and transportation costs can eat up 59% of household income for moderate-income households living in California. A large majority of low-income Californians are severely cost-burdened by housing, and 18% don’t own a car, underscoring a need to live in affordable communities well-served by public transportation. 

“In addition to reducing 5.7 million metric tons of greenhouse gas emissions and funding the creation of 20,361 new affordable homes, AHSC has resulted in 959 new buses, vans, and shuttles,1,512 miles of new and improved bike lanes, 28,000 transit passes and 47,000 construction-related jobs,” said California Housing Partnership President and CEO Matt Schwartz.  “AHSC is a proven solution to meeting the state’s climate and affordability goals and must be continuously funded or we risk further damaging state affordability and climate goals.”

“AHSC is the only significant ongoing source of funding for affordable housing in the state. With no new money for affordable housing production proposed in the Governor’s revised May budget, protecting the AHSC program is more important than ever so affordable housing production does not grind to a halt,” said Chione Flegal, Executive Director of Housing California.

“The transportation and housing sectors account for over one-third of all greenhouse gas emissions, and thus provide an enormous opportunity to reduce greenhouse gas emissions. Vital housing and transportation programs must be maintained as part of the Greenhouse Gas Reduction Fund,” said Eli Lipmen, Executive Director of MoveLA. 

Improving California’s Cap-and-Invest program is an essential way to address affordability, encourage economic prosperity, and advance equity for all Californians. Our organizations, along with over 100 additional housing, transportation, and community advocates across the state, have aligned around a unifying platform to protect and improve California’s Cap-and-Invest program.

For more information on the impacts of the Affordable Housing and Sustainable Communities Program, see the AHSC Impact Report from Rounds 1-8 of the program. For more information about the Transit and Intercity Rail Corridor Program and the Low-Carbon Transit Operations Program, see California’s Climate Investment program website. 

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Public Advocates Inc. is a nonprofit law firm and advocacy organization that challenges the systemic causes of poverty and racial discrimination by strengthening community voices in public policy and achieving tangible legal victories advancing education, housing, transportation equity, and climate justice.

Transform works to ensure that people of all incomes thrive in a world safe from climate chaos. We envision vibrant neighborhoods, transformed by excellent, sustainable mobility options and affordable housing, where those historically impacted by racist disinvestment now have power and voice.

Move LA is a coalition building nonprofit organization that led the effort to pass transformative mobility solutions through Measures R (2008) and M (2016) in LA County that fund public transit operations, capital projects, and maintenance. We build broad-based coalitions involving diverse stakeholders seeking bold solutions to the biggest challenges facing the region—mobility, affordable housing and homelessness, air quality and climate change. 

Enterprise Community Partners is a national nonprofit that exists to make a good home possible for the millions of families without one. We support community development organizations on the ground, aggregate and invest capital for impact, advance housing policy at every level of government, and build and manage communities ourselves.

Housing California is a statewide non-profit advocacy organization focused on increasing the supply of safe, stable, affordable homes; ending homelessness, protecting renters, and addressing the racial and economic inequities in our housing system.

The California Housing Partnership is a private nonprofit created by the Legislature in 1988 with the public mission of increasing the supply of affordable and sustainable homes through technical assistance and policy leadership at the state and national level. Since 1988, the Partnership’s on-the-ground technical assistance, applied research, and legislative leadership has leveraged more than $37 billion in private and public financing to preserve and create more than 96,000 affordable homes and to provide training to more than 46,000 people.

MTC Indecision on Regional Transit Funding Measure Leaves Riders in the Lurch

For immediate release

Contact: Abibat Rahman-Davies, [email protected], 510-740-9303

SAN FRANCISCO –  After months of deliberation, the Metropolitan Transportation Commission (MTC) failed to identify a clear path forward for a much-needed regional transportation measure.  

“We can’t let the unthinkable happen and let transit services collapse. It will be a domino effect, stripping the Bay Area of the public transit that’s the lifeblood of our region,” said Transform Transportation Policy Director Zack Deutsch-Gross. “Everyone suffers when transit service goes away. But low-income and BIPOC people, who often have the fewest transportation choices, will bear the brunt of diminished or absent public transit, with reduced access to jobs, education, and necessary services.” 

The Bay Area’s transit agencies face a fiscal crisis, with massive service cuts expected if the region doesn’t secure an additional revenue source by 2027. BART could be forced to reduce train frequencies to once an hour during off-peak times, while Muni would suspend up to 20 routes, and AC Transit would have to cut their entire service by up to 30%.

Time is running out to develop a unifying vision for a regional transportation revenue measure that can be approved by the legislature in 2025 and go on the ballot in 2026. With today’s vote to advance two different funding concepts — both lacking full-throated support from the Commission and select committee — Bay Area residents are entering the 2025 legislative cycle without a clear path forward to keep their buses and trains running.

One of the scenarios (1a) would not even fully address the fiscal cliff for Muni or AC Transit, despite the fact that these two agencies carry approximately 75% of the transit ridership in the Bay Area. 

Both scenarios are funded through a regressive sales tax. A sales tax measure would further burden low-income residents, especially in Alameda County, which already has the highest sales tax in the Bay Area. 

“Affordability is a top concern for voters, but a half-cent sales tax would burden those with the least ability to pay without fully addressing the fiscal cliff,” said Transform Transportation Policy Advocate Abibat Rahman-Davies. “It’s incredibly disheartening to see civic leaders like the Bay Area Council threaten to kill any measure that is not a sales tax.”

The Bay Area cannot give up on regional transit. If any of our transit systems is forced into drastic service cuts or ceases operation, we will lose a vital link in a transit chain, stranding residents from throughout the region. As a member of Voices for Public Transportation, Transform will continue to work with MTC, Bay Area transit operators, and the state legislature to advance authorizing legislation to support a robust, vibrant, connected transit future for our whole region. 

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Transform Responds to MTC Select Committee Inaction on Regional Transit Funding

For immediate release

Contact: Abibat Rahman-Davies, [email protected]

SAN FRANCISCO – The Metropolitan Transportation Commission (MTC) select committee tasked with developing a proposal for a funding mechanism for public transit has failed to come to a consensus. Now, the full commission will take up the task — and it must not fail.

“We can’t let the unthinkable happen and let transit agencies fail. It will be a domino effect, stripping the Bay Area of the public transit that’s the lifeblood of our region. Everyone suffers when transit service fails. But low-income and BIPOC people, who often have the fewest transportation choices, will bear the brunt of diminished or absent public transit, with reduced access to jobs, education, and necessary services,” says Transform Transportation Policy Advocate Abibat Rahman-Davies. “It’s time for the commissioners to think big and take their responsibility to provide a stable funding source for the whole region seriously.”

The Bay Area’s 27 transit agencies face a fiscal crisis. An additional funding allocation from the legislature in 2023 will run out soon, and Bay Area legislators and MTC have struggled to find a solution acceptable to all stakeholders that could win enough support at the ballot box. Most recently, MTC created a select committee to craft a measure with broad support.

We recognize this is a daunting task. Counties and cities have different priorities. Business interests and labor unions want specific provisions. But the members of the select committee, rather than providing certainty amidst the dissent, have not shown the leadership we need in this moment. Members have been focused on parochial interests and swayed by special interests. Today, as the MTC Special Select Committee mandate ended, they failed to reach a true consensus.

The Bay Area cannot give up on regional transit. As a member of Voices for Public Transportation, we have been working for years toward a vision for a more robust, vibrant, connected transit future for our whole region. If any of our transit systems is forced into drastic service cuts or ceases operation, we will lose a vital link in a transit chain, stranding residents from throughout the region.

We are not giving up. We call on MTC to quickly develop a funding proposal where no one is left behind, meaning that it is regional, fully funds the transit operator gap, and contains projects that reduce emissions. Any projects that increase vehicle miles traveled (VMT)  should be strictly mitigated. 

Reliable transit protects our climate from an emissions catastrophe and our roadways from endless gridlock. It’s time for MTC to step up, make hard decisions, and show it’s up to the challenge of leading the way for Bay Area transportation. 

Transform Applauds Signing of Transportation Accountability Act

For immediate release: September 27, 2024

Contact: Jeanie Ward-Waller, legislative advocate for Transform, [email protected]. 401-241-8559

SACRAMENTO: Today, Governor Gavin Newsom signed the Transportation Accountability Act, AB 2086, authored by Assemblymember Pilar Schiavo and co-sponsored by Transform and the Greenlining Institute. The bill will bring much-needed transparency to Caltrans spending and require Caltrans to provide a financial analysis of the California Transportation Plan. It will also require Caltrans to expand the project information publicly available through its online dashboard to relate spending to performance metrics.

“The Transportation Accountability Act is critical to ensuring that California’s transportation dollars are spent on projects that enhance mobility options while mitigating the climate crisis, especially for our most transportation-burdened communities. Decision makers can’t shift investment priorities without data on how those investments are benefiting or harming communities today,” says Jeanie Ward-Waller, legislative advocate for Transform and director of transportation advocacy at Fearless Advocacy.

California has an excellent framework for reducing emissions from transportation in the Climate Action Plan for Transportation Infrastructure (CAPTI). However, our state transportation budget is incredibly complex, making it hard to understand how priorities influence spending. This enables Caltrans to make decisions with little public oversight and advance climate-killing highway projects. As Transform pointed out in a recent op-ed, the projects our state is funding with money from the Infrastructure Investments and Jobs Act (IIJA) will have a net negative effect on climate change. AB 2086 will provide much-needed sunlight into transportation funding decisions and the benefits that result from those investments.

The California Air Resources Board estimates that 50% of California’s greenhouse gas emissions come from the transportation sector, and we must reduce driving by 25% by 2030 to be on track to meet our climate goals. The enhanced Caltrans dashboard mandated by this bill will allow advocates like Transform to connect California’s transportation expenditures to its climate goals and assess whether Caltrans is living up to its duty to serve all Californians and protect our communities.

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