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California Lawmakers Greenlight Senate Bill 63, Transit Funding Heads to Next Phase

The bill sets the stage for a 2026 ballot measure that could secure long-term funding for Bay Area transit agencies and safeguard essential services.

September 18, 2025
Image of the Golden Gate Bridge with text reading "California Lawmakers approve SB 63, Transit Funding Moves Forward."

SB 63 could provide new revenue to sustain Bay Area transit agencies, helping agencies like BART, AC Transit, VTA, and SamTrans avoid service cuts.

Photo: METRO

2 min to read


San Francisco Bay Area transit agencies are applauding the support of California lawmakers following the approval of the Connect Bay Area Act (Senate Bill 63). SB 63 creates a Public Transit Revenue Measure for five Bay Area counties and now moves to collecting voter signatures.

If enough signatures are gathered, the measure will qualify for the November 2026 ballot, allowing voters to decide on a sales tax of half a cent in Alameda, Contra Costa, Santa Clara, and San Mateo counties, and one cent in the City and County of San Francisco.

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The Public Transit Revenue Measure would create a sustainable funding stream that protects Bay Area transit systems from service reductions that disproportionately impact transit-dependent riders, limit workforce mobility, increase traffic congestion, and degrade regional air quality.

Agencies Call SB 63 a Lifeline for Service and Stability

"Despite fare adjustments, significant internal cost-cutting measures, and limiting hiring, our transit district is using reserves this fiscal year to cover a $41.5 million deficit," said Alameda-Contra Costa Transit District Board President Diane Shaw. "SB 63 offers a beacon of hope during these financial challenges. By providing new revenue, it has the potential to prevent unprecedented service cuts, as our fiscal crisis is projected to worsen, with a $74 million shortfall forecasted in fiscal year 2026–27."

"SB 63 represents a transformative opportunity to invest in the future of public transit," said Carolyn Gonot, VTA general manager and CEO. "With this measure, we can deliver faster, more reliable service and ensure equitable access for all riders across Santa Clara County."

"Lawmakers in Sacramento heard our concerns and worked together to create stronger oversight and accountability measures than originally proposed," said SamTrans Board of Directors Chair Jeff Gee. "This measure provides critical resources we need to maintain Caltrain service, strengthen SamTrans operations, and protect vital regional connections with BART and Muni for our riders that rely on public transportation here in San Mateo County." 

According to an agency release, the Bay Area Rapid Transit Board of Directors supports 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."

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SB 63 would create a special district across five counties that would allow this regional funding measure to be placed on the November 2026 ballot.

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