Oakland, Calif.’s Alameda-Contra Costa Transit District (AC Transit) approved a two-phase fare adjustment, raising the local adult cash fare by .25¢, from $2.50 to $2.75, and increasing the Transbay cash fare from $6.00 to $6.50, effective July 1. 

A second .25¢ increase will bring the local cash fare to $3.00 in July 2026.

The Need for Fare Increase

In a 4 to 3 vote, the AC Transit board ultimately determined the fare adjustment protects service while minimizing financial impacts on our valued riders.

The agency has not raised fares since January 2020, despite the board of directors' five-year plan for gradual increases, which began with local fares in 2018 and Transbay fares in 2019. 

However, the pandemic’s severe impact on service and ridership led policymakers to postpone fare adjustments. As a result, emergency grant funding from the American Rescue Plan Act of 2021 (ARP) was used to stabilize operations and sustain service levels.

With emergency ARP funds now depleted, several years of stagnant fares, and an unexpected fiscal update from the Metropolitan Transportation Commission (MTC), AC Transit faces a looming budget shortfall.

The projected four-year gap has increased by 55%, from $149 million to $238 million, beginning in the next fiscal year with a shortfall of $45 million. The shortage will grow to approximately $72 million in FY 2026-27.

Mitigating the Budget Shortfall

To help mitigate this significant deficit, the approved fare adjustment is expected to generate $4.1 million in revenue in the coming fiscal year. By the end of FY 2026/27, the additional fare revenue is projected to reach $7.9 million.

AC Transit officials said it understands that any fare increase is difficult for passengers, however, inflation continues to drive up the cost of operations and ridership remains significantly below pre-pandemic levels. As a result, the transit district is considering more than fare increases to avoid unwanted impacts on service, including finding efficiencies within its operations to reduce costs. 

Additionally, we are working closely with regional partners to identify alternative funding sources that can help address the budget shortfall.

AC Transit remains actively involved in the MTC-managed Clipper START discounted fare program. 

Through START, eligible low-income riders now enjoy a 50% discount on AC Transit fares. Participation has seen significant growth, with recent reports showing that AC Transit’s START program riders saved over $136,000 from the 50% discount in the final three months of 2024 alone. 

AC Transit will also continue the .25¢ discount for Clipper and mobile fare payments. Pass prices and discounted fares will also adjust based on their existing multipliers, ensuring a fair and consistent structure for all riders.