Photo: MTC

Five-county half-cent sales tax would include Contra Costa County, last 14 years; in addition to existing half-cent BART operations sales tax

By John Goodwin, Assistant Director of Communications & Rebecca Long, Director, Legislation & Public Affairs, Metropolitan Transportation Commission 

Gov. Gavin Newsom today, Monday, October 13, 2025, signed into law state Senate Bill 63, authorizing a November 2026 ballot measure to prevent major service cuts at BART and other Bay Area transit systems and to make improvements to transit affordability, accessibility and reliability in the region. The new law allows the measure to be placed on the ballot either through action by a newly formed Public Transit Revenue Measure District governed by the same board as the Metropolitan Transportation Commission (MTC) or via a citizen’s initiative.

The half-cent sales tax would be in addition to the half-cent sales tax for BART operations in Contra Costa, Alameda and San Francisco counties in place since the 1960’s.

Enactment of the bill — authored by state senators Scott Wiener (D-11) of San Francisco and Jesse Arreguín (D-7) of Berkeley, and co-authored by Sen. Laura Richardson of Los Angeles County and Assemblymembers Mia Bonta (D-18) of Alameda County and Matt Haney (D-17) and Catherine Stefani (D-19) of San Francisco — clears the way for voters in Alameda, Contra Costa, San Francisco, San Mateo and Santa Clara counties to consider a 14-year regional transportation sales tax that would generate approximately $980 million annually across the five counties. The bill authorizes voter consideration of a half-cent sales tax in Alameda, Contra Costa, San Mateo and Santa Clara counties and a one-cent sales tax in San Francisco.

Approximately 60 percent of the revenue that would be raised if voters approve the measure will be dedicated to preserving service on BART, Muni, Caltrain, AC Transit — which an independent analysis confirmed face annual deficits of more than $800 million annually starting in fiscal year 2027-28 — as well as San Francisco Bay Ferry and smaller transit agencies providing service in the five counties to keep buses, trains and ferries moving. About one-third of the revenue would go to Contra Costa Transportation Authority, Santa Clara VTA, SamTrans and the Alameda County Transportation Commission, with flexibility to use funds for transit capital, operations, or road paving projects on roads with regular bus service.

If a regional tax measure wins voters’ approval next fall, about 4.5 percent, equivalent to $43 million in fiscal year 2027-28, will go toward improving the rider experience, funding priorities identified in the 2021 Bay Area Transit Transformation Action Plan.

“In addition to averting major service cuts for regional operators, MTC advocated for the measure to include dedicated funding to make Bay Area transit more affordable, reliable, and easy to use so that it becomes a system that will attract more riders,” noted Commission Chair and Pleasant Hill Mayor Sue Noack.

The suite of rider-focused improvements includes:

• Free and reduced-fare transfers that could save multi-agency riders up to $1,500 per year and are estimated to increase transit ridership by some 30,000 trips per day.
• Expansion of the Clipper START^® program, which provides a 50% fare discount, to reach 100,000 additional low-income adults.
• Improvements to accessibility for seniors and people with disabilities.
• Transit-priority projects to make bus trips faster, and mapping and wayfinding improvements to make transit easier to use.

Bay Area transit riders take more than 1 million trips each day, with over 80 percent of these trips on Muni, BART, Caltrain or AC Transit. Riders include tens of thousands of students, seniors, people with disabilities, and low-income residents who can’t afford to own a car. Clipper START customers accounted for nearly 400,000 transit trips across the region in August 2025 and the fare-discount program is growing at a rate of more than 20,000 customers each year.

SB 63 includes several oversight and accountability provisions to reassure voters their tax dollars will be used responsibly. These include establishing an independent oversight committee to ensure expenditures are consistent with the law. Membership will include at least one representative from each county in the Public Transit Revenue Measure District, appointed by each county’s board of supervisors.

The new law also requires BART, Muni, Caltrain and AC Transit to undergo a two-phase independent third-party financial efficiency review overseen by its own oversight committee composed of four independent experts, four transit agency representatives, and an MTC Commissioner. MTC is responsible for procuring the third-party consultant to conduct the review and for staffing the Oversight Committee.

A maintenance-of-effort clause in SB 63 requires BART, Muni, Caltrain, AC Transit, Golden Gate Transit, SF Bay Ferry and the bus operators in Alameda and Contra Costa counties to maintain existing levels of funding for operating purposes if a 2026 tax measure is passed by voters. The legislature established this requirement to ensure the measure supplements, rather than replaces, current operations support, with provisions for exceptions that are subject to MTC approval.

To provide additional oversight regarding the quality of the transit service provided in each county participating in the measure, the legislation allows a county transportation agency or board of supervisors within the District’s geography to require review by an ad-hoc adjudication committee if they believe a transit agency funded by that county’s portion of the measure’s revenue is not applying standards (such as service levels, fare policy, cleanliness, maintenance, access and safety) consistently across counties or if those standards disproportionately disadvantage service or transit equipment/station quality in that county. The committee is composed solely of representatives from counties contributing revenue measure funds to the transit agency under review. Its determinations are binding and may result in withholding up to 7 percent of the transit agency’s funds, a strong incentive for agencies to deliver high quality service that follows consistent standards across all five counties.

What Local Transportation Officials are Saying: 

“The BART Board of Directors supported SB 63 because it will cover a significant portion of BART’s operating deficit caused by remote work and will allow us to maintain current service levels and improve the rider experience,” said BART General Manager Bob Powers.

“SB 63 is a step towards protecting essential Muni service and will equip us with resources to continue meeting the needs of San Francisco and the growing region,” said Julie Kirschbaum, San Francisco Municipal Transportation Agency Director of Transportation.

“Through Governor Newsom’s leadership and the support of voters, SB 63 will help protect transit for our more than three million monthly riders. In fact, this summer, we took proactive steps to preserve service by redesigning 103 bus lines through our new Realign network. Designed over two years, this all-new network maintains service at 85 percent of pre-pandemic levels. SB 63 gives voters a chance to ensure that these vital bus lines – and our riders’ lifelines – are protected for the future,” said AC Transit Board President Diane Shaw.

“Caltrain has been reinvented as a state-of-the-art rail system, delivering the best service this corridor has seen in its 161-year history. We are seeing the benefits every day with growing ridership, cleaner air, quieter trains, and less-congested roads. To sustain these benefits, it is essential that Caltrain be funded. We are deeply grateful to Governor Newsom and the California Legislature for their leadership in crafting and supporting this legislation, which gives voters the opportunity to consider the vital Connect Bay Area measure in November 2026,” said Caltrain Executive Director Michelle Bouchard.

“SB 63 represents a transformative opportunity to invest in the future of public transit,” she said. With this measure, we can deliver faster, more frequent service and ensure better connections for all riders across Santa Clara County,” said Carolyn Gonot, Santa Clara Valley Transportation Authority General Manager and CEO.

“We’re excited the Connect Bay Area Act is moving forward and voters will soon have the opportunity to shape the future of public transit along the Peninsula and surrounding Bay Area communities. Next November’s vote will be a pivotal moment to secure reliable, connected and sustainable transportation. With this measure, we can ensure SamTrans, Caltrain and our regional transit partners have the stable funding needed to serve riders for years to come,” said SamTrans Board of Directors Chair Jeff Gee.

MTC is the transportation planning, financing and coordinating agency for the nine-county San Francisco Bay Area.

BART Issues Statement of Support

BART issued the following statement on Governor’s signing transit funding measure SB 63:

“BART is grateful to Governor Newsom for signing Senate Bill (SB) 63 into law. The Governor has been a steadfast advocate of transit and BART specifically, recognizing our role in moving the region and strengthening the economy. SB 63 is a historic opportunity to allow voters in five counties of the Bay Area to consider a sales tax measure in November 2026 aimed at preserving and improving transit.

A regional transportation funding measure would provide a reliable funding source for BART and other agencies to address deficits caused by remote work. The BART Board of Directors supported SB 63 because it will cover a significant portion of BART’s operating deficit and allow us to maintain current service levels and improve the rider experience.

Before measure funds become available, BART will rely on internal cuts, efficiency measures, and a series of one-time solutions to pay for operations. BART will continue to identify additional cost savings and efficiencies to address our deficit, and we welcome the enhanced accountability measures and financial efficiency review included in SB 63.

BART is also grateful to Senators Scott Wiener and Jesse Arreguín for championing this legislation and their fierce advocacy for transit funding.”

Allen D. Payton contributed to this report.