Putting Together the Funding Puzzle for Transit

Bay Area voters say that they want to prevent transit service cuts and have a more rider-friendly system. California has goals to reduce greenhouse gas emissions that require dramatically increased transit ridership and mode share. The recipe to achieve these goals is faster, more frequent, more reliable, better-coordinated transit service.  

In 2025, policymakers and advocates are working on a set of funding measures and policy reforms that could work together to achieve these goals, in the short, medium, and long term.

In the Bay Area, policymakers are working on a combination of regional and local funding measures that can snap together to support a well-coordinated transit system. It is critical for the pieces to be designed to work together so the outcome meets voter demand for a seamless system with better service and coordination. 

At the state level, legislators are pursuing transit funding in the state budget, which is essential to keep transit from falling off a cliff while local and regional ballot measures are in the works.   

At the same time, the state legislature is looking to reauthorize the state’s Cap and Trade program, whose Greenhouse Gas Reduction Fund (GGRF) has historically been an important funding source for transit, and could be made more flexible to support transit operations. 

And the Newsom Administration already has the power to use highway funding more flexibly to support transit operations as well. 

This conceptual graphic shows how the various puzzle pieces can fit together in the short to medium term to support a seamless transit transit system, while longer term solutions are being developed. 

For the longer term, the State Transit Transformation Task Force is exploring recommendations to provide longer term funding to enable the public transit system to achieve the state’s goals, considering that California has a history of underfunding transit operations compared to other states with substantial transit systems. And California’s SB1121 Task Force is looking into how to replace the gas tax as a major source for transportation funding, since fuel taxes are declining long term with the electrification of the transportation sector.

Actions you can take now and soon

One immediate action you can take is to sign this petition to urge Governor Newsom to flex California highway funding, one of the critical puzzle pieces for transit funding. This action would have precedent: Pennsylvania Governor Josh Shapiro recently flexed $153 million in highway funding as a stopgap measure to save their transit systems. 

Over the next few months as the legislative session and budget process continues Seamless Bay Area will keep you up-to-date on more opportunities to support transit funding in a way that delivers seamless transit.

A version of this post also appears on the Seamless Bay Area blog.