BART and Muni have been teetering on the brink of financial collapse for years, saved only by last-minute financial lifelines. In 2021, federal aid provided a temporary reprieve, and last year, California’s government stepped in with another bailout, but these funds are dwindling. By fiscal 2026, both agencies will face significant deficits, with SFMTA staring at a $214 million shortfall and BART at $385 million.
In a blow to their future funding hopes, state lawmakers recently shelved a bill that would have allowed a 30-year tax to support transit operations on the 2026 ballot. This decision throws a wrench into the plans of BART and Muni, who were banking on voter approval to secure long-term funding. The bill’s authors vow to rally more support and reintroduce it next year, but the path to sustainable transit funding remains rocky.
Meanwhile, BART is seeking feedback on two new fare programs to boost ridership. The Clipper BayPass is a regional, prepaid, unlimited-ride transit pass for institutions like employers, universities, and affordable housing sites. This program, currently in its pilot phase, allows organizations to provide unlimited access to all bus, rail, and ferry services in the Bay Area for all their eligible members. The second initiative, the No Cost & Reduced Cost Transfers Pilot Program, aims to provide free or discounted transfers between transit agencies using the Clipper system. Riders will pay full fare for the first leg of their trip, with subsequent transfers within two hours being free or discounted.
This issue isn’t unique to the Bay Area. Cities across the country are grappling with similar post-pandemic transit funding woes. However, the Bay Area’s 27 transit agencies, serving nine counties, face a particularly tangled web of interests and funding sources. The failure of SB1031 highlighted these challenges, with opposition coming from various local officials and transit agencies concerned about their own funding.
Senators Scott Wiener and Aisha Wahab, who championed the bill, are determined to try again. Meanwhile, transit officials stress the need for immediate financial contingency plans. Without new funding, significant service cuts loom on the horizon for Muni, and BART must prepare for tough labor negotiations as it faces rising operational costs.
Take the survey about the Clipper BayPass and the No Cost & Reduced Cost Transfers Pilot Program at bart.gov/BayPassSurvey from June 7 – June 24 or at in-station outreach events at the BART stations listed on the website.