BART avoids service cuts for one more year with balanced budget while facing historic deficits without new revenue

The BART Board of Directors voted to adopt a balanced budget for FY26, protecting safe, clean, and frequent service for one more year before facing a fiscal cliff in FY27 that could have dire and widespread impacts on the Bay Area's greater transportation network. The BART board continued its strategy of avoiding service cuts by using the remaining $318 million of state and regional emergency funds to help pay for the cost of running train service, while supporting deficit-reducing, cost-cutting measures, such as a strategic hiring freeze and running shorter trains. A planned 6.2% fare increase, expected to go into effect January 1, 2026, also helps close a projected $35 million deficit. 

The FY26 budget is also supported by a fiscal year-over-year 4% increase in paid trips thanks to new fare gates, new fare programs, such as Clipper BayPass offering employer-paid unlimited transit passes, attracting more riders with a cleaner, safer ride, and schedule coordination with connecting transit agencies.

BART’s overall expenses grew by less than 1% in FY26, demonstrating that cost controls and targeted cuts to non-labor expenses are holding costs down, as well as the effectiveness of BART’s disciplined approach to belt tightening and prudent fiscal management. No new positions were added to the budget and dozens were frozen in a strategic hiring freeze. 

“Our riders are noticing the improvements we have made to the overall BART experience, resulting in the highest satisfaction rates in ten years,” said BART Board President Mark Foley. “We made strategic decisions in this budget to show the Bay Area we must be part of the solution in reducing costs, but also ensuring we have frequent, clean, and safe service at this critical moment when traffic congestion is increasing and people are returning to the office and wanting to take car-free trips on nights and weekends as well.”

Operating budget prioritizes Safe and Clean Plan   

BART’s $1.2 billion operating budget will continue to fund the current service plan with no planned cuts to service this fiscal year. In August, small adjustments will be made to BART’s schedule in coordination with other transit systems to improve timed transfers with Caltrain at Millbrae Station and to improve transfers with Wheels Bus service at Dublin Station. Improvements to the BART to Antioch transfer are also planned. 

While the FY26 operating budget includes $35 million in reductions and cost controls, these cuts will not impact BART’s ability to provide clean and safe service or impact BART’s efforts to have an increased safety presence on trains and inside stations. 

Capital budget prioritizes reliability improvements and modernization efforts 

BART’s $1.1 billion capital budget prioritizes funding Fleet of the Future rail cars, BART’s project to upgrade its aged train control system to a modern Communications Based Train Control System, new traction power equipment which will improve reliability, new escalators, a new BART Police headquarters, and other rebuilding efforts. 98% of the capital investments are allocated to system reinvestment and service and capacity enhancements that will allow us to continue to serve as the backbone of the region’s transportation system. These projects are funded by voter-approved Measure RR and other local, regional, state, and federal grant sources, in addition to allocations from BART’s operating budget to help pay for these essential projects. 

Fiscal cliff is rapidly approaching

The FY27 preliminary budget, which includes no emergency assistance, shows a $376 million deficit due to BART’s outdated funding model and the fact the Bay Area has embraced remote work at higher rates compared to the rest of the country. The BART Board has voted to support SB 63 (Wiener/Arreguin), also known as the Connect Bay Area Act, which would authorize a regional transportation funding measure on the November 2026 ballot to enact a sales tax in Alameda, Contra Costa, and San Francisco counties, with an option for San Mateo and Santa Clara counties to opt in. Funds from the measure would support transit agency operations and rider-focused transit coordination improvements. 

BART is also advocating for state budget funding to prevent service cuts in FY27 as well as requesting that BART’s current funding allocations from state programs continue to be honored in the coming state budget, which is under development now.