Newsom authorizes Bay Area transit tax measure for 2026 ballot
By Tim Fang
As Bay Area transit agencies face large deficits, Gov. Gavin Newsom signed legislation authorizing a ballot measure in which voters decide on a regional sales tax that would fund transit.
On Monday, the governor signed Senate Bill 63 by state senators Scott Wiener (D-San Francisco) and Jesse Arreguin (D-Berkeley). The bill clears the way for voters in Alameda, Contra Costa, San Francisco, San Mateo and Santa Clara counties to consider a transportation sales tax.
“The Bay Area runs on transit, and this measure will allow it to keep running for many years to come,” Wiener said in a statement.
According to the Metropolitan Transportation Commission (MTC), the tax is expected to generate about $980 million annually across the five counties. In San Francisco, voters are considering a one-cent sales tax, while the four remaining counties are considering a half-cent sales tax.
Supporters said the measure is needed as BART, Muni, Caltrain, AC Transit and other agencies face staggering deficits as soon as next year, as federal relief funding dating back to the COVID-19 pandemic runs out.
According to BART officials, structural deficits are expected to range from $350 million to $400 million per year beginning in Fiscal Year 2027.
“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,” BART General Manager Bob Powers said in a statement following SB63 being signed into law.
Meanwhile Muni is facing annual deficits of $300 million beginning in July 2026.
SFMTA director Julie Kirschbaum said, “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.”
If approved, 60% of the revenue would be dedicated to preserving service on BART, Muni, Caltrain, AC Transit along with San Francisco Bay Ferry and smaller transit agencies. Another one-third of the revenue would go to Santa Clara VTA, SamTrans the Alameda County Transportation Commission and the Contra Costa Transportation Commission for transit capital, operations or road paving projects involving roads with regular bus service.
Officials said about 4.5% of revenues would go towards improving rider experience, including free and reduced-fare transfers, expanding the Clipper Start program for low-income residents and improvements to accessibility for seniors and the disabled.
If approved in 2026, the tax would be in effect for 14 years.
