Local fares to go up to $2.75, Transbay fares up to $6.50
The Alameda-Contra Costa Transit District (AC Transit) Board of Directors approved a two-phase fare adjustment, raising the local adult cash fare by 25 cents, from $2.50 to $2.75, and increasing the Transbay cash fare from $6 to $6.50, effective July 1, 2025. A second 25-cent increase will bring the local cash fare to $3 effective July 1, 2026.
In a 4-3 vote, the Board ultimately determined that the fare adjustment protects service while minimizing financial impacts on riders.
AC Transit 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 those emergency ARP funds now depleted, several years of stagnant fares, and an unexpected fiscal update from the Metropolitan Transportation Commission (MTC), AC Transit—now in its 65th year of service—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.
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 understands that any fare increase is difficult, and we are keenly aware of the financial pressures everyone currently faces,” the transit organization stated in an informational release. “However, inflation continues to drive up the cost of operations, and ridership remains significantly below pre-pandemic levels. As a result, our transit district is considering more than fare increases to avoid unwanted impacts on service, including finding efficiencies within our operations to reduce costs. Additionally, we are working closely with regional partners to identify alternative funding sources that can help address the budget shortfall.”
Discounts for low-income, youth, and senior riders
Low-income AC Transit riders may use the Clipper START discounted fare program, which offers a 50% discount on AC Transit fares to eligible participants. Recent reports show that AC Transit riders who use the START program saved over $136,000 on fares in the final three months of 2024 alone.
AC Transit will also continue its 25-cent discount for Clipper card and mobile fare payments. Riders aged 5-18 or 65 and over can get reduced fares with a Youth or Senior Clipper card. Apply for a Youth or Senior Clipper card by mail, email or fax. Or get a card in person. An accepted form of identification is required.
