California Senate Bill 63
| California Senate Bill 63 | |
|---|---|
| California State Legislature | |
| Signed into law | October 13, 2025 |
| Governor | Gavin Newsom |
| Code | Government Code |
| Bill | California Senate Bill 63 |
| Website | Bill Information |
California Senate Bill 63 (SB 63), titled the Connect Bay Area Act, is a 2025 California bill signed into law that authorizes a five-county sales tax measure to be placed on the November 2026 ballot. If approved by voters, the measure would enact a 14-year tax projected to raise $980[1] million per year to fund the day-to-day operations of various San Francisco Bay Area transit agencies.[2]
Provisions
The act authorizes a 14-year sales tax, levying a half-cent tax in Alameda, Contra Costa, San Mateo, and Santa Clara counties, and a one-cent tax in San Francisco.[3][1] In addition to funding, the bill requires operators receiving funds to adhere to the Metropolitan Transportation Commission (MTC)'s Regional Network Management policies. These policies are designed to improve coordination through measures such as free or discounted transfers, schedule alignment, unified wayfinding, and transit priority on streets. The bill also mandates that agencies undergo third-party financial efficiency reviews to identify potential cost savings and submit implementation plans to the MTC.[4]
Background
SB 63 was developed in response to structural deficits for Bay Area transit agencies facing depleted pandemic-era federal relief funds,[1] including San Francisco, which is also considering a new parcel tax to fund Muni.[3] The bill is a smaller successor to the 2024 Senate Bill 1031, a more ambitious nine-county plan to raise $1.5 billion annually that failed due to disputes over the tax type and how revenue would be allocated.[5][2] It also follows a 2023 proposal by Senator Wiener to increase tolls on the region's bridges to fund transit.[6]
Legislative history
Senator Scott Wiener introduced the bill in March 2025, along with co-author Senator Jesse Arreguin. It initially included only Contra Costa, Alameda and San Francisco counties.[7][8]
- June 2, 2025: The bill was approved by the California State Senate in a 28-10 vote.[9]
- August 2025: San Mateo and Santa Clara counties agreed to join the compact.[10]
- September 2025: The bill passed the full California State Legislature.[11]
- October 2025: Governor Gavin Newsom signed the bill into law.[1]
The tax won't go to the ballot until either the transit agencies send it to voters (requiring a two-thirds approval) or a voter initiative path (requiring a simple majority).[12]
Support and criticism
The bill garnered support from transit advocates and local officials. The urbanist think-tank SPUR backed the bill on the grounds that "the need for new funding is dire" and the bill is "practical and politically realistic".[4] MTC Chair and Pleasant Hill Mayor Sue Noack testified in Sacramento in support of the measure to prevent major service cuts.[13] In July, San Francisco's 11 city supervisors voted to reaffirm their support.[10] Caltrain said without the funding the impacts could include closing 1/3 of stations, no weekend service, only running once an hour, stopping at 9pm, and cutting service area.[14]
In June, before the bill was signed, Bay Area Forward, an advocacy group of transit operators and unions, argued for switching to a gross receipts tax to shift the financial burden from individuals to businesses,[15][16] a change that was opposed by the business association Bay Area Council.[9]
Revenue
San Mateo estimated that by 2031 the tax would bring in $135 million annually, $32.5 million of which would be used for Caltrain.[10] Santa Clara expects to receive $264 million annually.[10] The MTC expects the tax to generate $980 million annually across the five counties.[1]
The law sets detailed fixed percentage allocations. The table below shows a summary[17] of these percentages and estimated dollar amounts (assuming $980[1] million in annual revenue).
| Category | Sub-entity / Program | % Allocation
(Fixed by Law) |
Est. Annual Funding
(at $980M total) |
|---|---|---|---|
| Administration | 0.22% | $2,156,000 | |
| Regional transit transformation programs | 4.44% | $43,512,000 | |
| Large Operators | BART | 31% | $303,800,000 |
| Muni | 16% | $156,800,000 | |
| AC Transit | 5% | $49,000,000 | |
| Caltrain | 7% | $68,600,000 | |
| Small Operators | Alameda County small operators | 0.5% | $4,900,000 |
| Contra Costa County small operators | 1.5% | $14,700,000 | |
| San Francisco Bay Ferry | 0.7% | $6,860,000 | |
| Golden Gate Transit | 0.1% | $980,000 | |
| Designated County Entity | Alameda County Transportation Commission | 1% | $9,800,000 |
| Contra Costa Transportation Authority | 2.5% | $24,500,000 | |
| San Francisco County Transportation Authority | 0% | $0 | |
| San Mateo County Transit District | 4.7% | $46,060,000 | |
| Santa Clara Valley Transportation Authority | 25.1% | $245,980,000 |
References
- ^ a b c d e f "Newsom authorizes Bay Area transit tax measure for 2026 ballot - CBS San Francisco". www.cbsnews.com. 2025-10-14. Retrieved 2025-11-07.
- ^ a b Brekke, Dan (2025-03-24). "First Look at 2026 Tax Proposal to Keep Bay Area Transit Running | KQED". www.kqed.org. Retrieved 2025-11-07.
- ^ a b "New sales tax to fund Bay Area transit closer to 2026 ballot". sfstandard.com. 2025-10-13. Retrieved 2025-11-07.
- ^ a b Petty, Sebastian; Advisor, Senior Transportation Policy (2025-04-17). "Why SPUR Is Supporting SB 63, a Tax Measure to Keep Transit Alive | SPUR". www.spur.org. Retrieved 2025-11-07.
{{cite web}}:|last2=has generic name (help) - ^ Brekke, Dan (2024-05-31). "A Bill to Save Bay Area Transit From Fiscal Disaster Is Dead, at Least for Now | KQED". www.kqed.org. Retrieved 2025-11-07.
- ^ writer |, Adam Shanks | Examiner staff (2025-05-08). "Sales tax reluctantly floated as transit boon". San Francisco Examiner. Retrieved 2025-11-07.
- ^ "As deadline looms, Sen. Scott Wiener introduces bill to fund Bay Area transit".
- ^ Fleisher, Arielle (2025-03-24). "Transit-Funding Measure Reintroduced - Streetsblog San Francisco". sf.streetsblog.org. Retrieved 2025-11-07.
- ^ a b "Plan to raise $500 million in annual sales taxes for beleaguered Bay Area transit advances in Legislature". The Mercury News. 2025-06-04. Retrieved 2025-11-07.
- ^ a b c d Chinn, Jerold; adminnewspack (2025-08-14). "San Mateo, Santa Clara join regional Bay Area transit funding measure". The Voice of San Francisco. Retrieved 2025-11-07.
- ^ "Bay Area voters could see sales tax measure for regional transit on 2026 ballot - CBS San Francisco". www.cbsnews.com. 2025-09-13. Retrieved 2025-11-07.
- ^ "New sales tax to fund Bay Area transit closer to 2026 ballot". sfstandard.com. 2025-10-13. Retrieved 2025-11-07.
- ^ "Bay Area Braces for Transformation: Senate Bill 63 Advances, Proposing Sales Tax Hike to Revamp Public Transit". Hoodline. 2025-05-01. Retrieved 2025-11-07.
- ^ Caltrain (2025-11-07). "Caltrain Outlines Cuts to Come Without External Funding | Caltrain". www.caltrain.com. Retrieved 2025-11-22.
- ^ Mccarthy, Will; Schultheis, Emily (2025-06-02). "The coming labor-business fight over Bay Area transit". POLITICO. Retrieved 2025-11-07.
- ^ Brekke, Dan (2025-06-19). "Proposed Transit Tax Should Be Paid by Businesses, Not People, Progressive Group Says | KQED". www.kqed.org. Retrieved 2025-11-11.
- ^ Petty, Sebastian; Advisor, Senior Transportation Policy (2025-10-22). "Connect Bay Area Act Authorizes a Regional Tax Measure to Save Transit | SPUR". www.spur.org. Retrieved 2025-11-07.
{{cite web}}:|last2=has generic name (help)