One Step Closer to Stable Funding for Bay Area Transit
This post was originally published on July 30, 2025, and updated on August 13, 2025 to include the addition of Santa Clara and San Mateo Counties to the regional measure.
The California Air Resources Board (CARB) has found that the Bay Area needs to double transit ridership in order to meet our region’s climate goals. Yet we could move in the opposite direction if we don’t develop a stable, ongoing source of funding. Some operators could be forced to drastically curtail service, gridlocking our transportation systems.
So, it’s good news that the Bay Area Transit Funding Bill, SB 63, has cleared all the policy committees in the legislature. The legislation gives Bay Area counties the authority to put a transit funding measure on the November 2026 ballot. Voters must approve the revenue mechanism and expenditure plan before it can take effect.
The Bay Area Transit Funding Bill has three more hurdles to clear: the Assembly Appropriations Committee, a vote of the full Assembly, and getting the governor’s signature. As the measure continues to make its way through the legislative process, Transform, and our allies are advocating for a better funding source and improvements that support riders throughout the region, and we see some positive signs. Based on the newly released expenditure plan, here’s where SB 63 and the Bay Area’s transit future stand with the legislature on recess.
Positive developments for region-wide transit
Moving legislation through can be a messy process, with changing provisions and shifting support. We’re seeing these positive developments in SB 63:
- As formulated, it would generate around $1 billion annually for transit, enough to avert massive service cuts while not entirely filling the funding gap.
- It includes about $46 million annually for transit transformation. This could provide discounted transfers and fares, making transit more affordable and encouraging more people to ride. And it would fund wayfinding and accessibility improvements that advocates have asked for, creating a more integrated transit system throughout the Bay Area.
- Santa Clara and San Mateo Counties opted into the measure, despite not being initially included in the legislation. A five-county measure is a major win for regional connectivity and collaboration, particularly for rail operators BART and Caltrain, which serve both of these counties.
No money for highways
Earlier versions of the regional measure allowed as much as 30% of the measure to be available for highway spending, enough to outweigh any climate benefits generated by additional public transit investments. However, in a big win for Transform and the climate, not only will the measure be climate-positive, but all of the money will be spent on public transit, which will get people out of their cars and onto the bus or train, reducing congestion and greenhouse gas emissions.
What we’re still fighting for
Stable transit funding requires a new tax. From the beginning, Transform has advocated for a progressive revenue mechanism that would generate more funding and require wealthy businesses to pay their fair share. However, SB 63 calls for a sales tax, which will fall most heavily on those least able to afford it.
The possibility of a citizen initiative
SB 63 contains language to allow a regional funding measure to be placed on the ballot via citizen initiative. A citizen-led initiative has a significant upside: it only needs 50% plus one vote to pass. A measure placed on the ballot by MTC or another elected body requires over two-thirds of voter support.
Getting a citizen initiative on the ballot isn’t easy. Bay Area Forward — a collaboration of transit unions and Voices for Public Transportation Coalition — and our allies would need to collect tens of thousands of signatures, which is an expensive and time-consuming process. However, if we succeeded, this could provide a template for future funding measures, such as a proposed affordable housing measure.
Bay Area transit must keep moving forward
Bay Area legislators, MTC, and advocates like Transform have been working for several years to save local transit from the fiscal cliff. We’ve secured stopgap funding and an emergency loan from the state while investing significantly in safety, cleanliness, and innovative fare programs like the Clipper BayPass, which has grown ridership by 30%.
These wins will be lost if we don’t pass a regional measure in 2026. Even if SB 63 doesn’t contain everything Transform could hope for by the time it reaches the governor’s office, we’ll still work hard to see that it passes in 2026. The future of the transit systems that the Bay Area relies on, as well as our economic vitality, access to opportunity, and climate goals, depend on it.























