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The Santa Clara Valley Transportation Authority is unanimously endorsing a state bill that could unlock hundreds of millions of dollars in funding for public transit, as agencies from Caltrain to BART brace for the impact of a steep fiscal cliff.
Senate Bill 63, authored by Scott Wiener (D-San Francisco) and Jesse Arreguin (D-Berkeley), hopes to provide a quick infusion of state money into struggling public transit through a regional tax measure on the 2026 ballot. If the bill passes through the legislature and the governor’s desk in the coming months, the decision turns to voters in the five-county Bay Area region.
The legislation automatically includes transit agencies in San Francisco, Alameda and Contra Costa counties — but San Mateo and Santa Clara can choose to opt in by Aug. 11.
And Santa Clara County did so by a unanimous vote Thursday evening at the VTA Board of Directors meeting.
“This is something that can take a very challenging and problematic situation and turn it into a real opportunity for our residents to benefit from not losing transit but instead having better transit,” said ex-oficio Board Member Pat Burt, who also sits on the Palo Alto City Council.
The VTA joins AC Transit, BART, Caltrain, the Metropolitan Transportation Commission and SamTrans in endorsing the bill, among several other regional agencies.
After the VTA covers its own deficit and contributes its share of revenue to Caltrain, there will be $150 million each year leftover that can go toward improving bus and light rail transportation in Santa Clara County.
Transportation authorities in Santa Clara, San Mateo and San Francisco counties jointly contribute to Caltrain operations each year. VTA and SamTrans would each contribute $32.5 million annually if the regional measure passes, leaving SFMTA to pitch in $10 million each year.
None of the VTA’s revenue from the regional measure would be put toward BART Silicon Valley Phase II expenses, a multi-billion dollar extension of the Berryessa line that has struggled to find funding.
“We do still have to work out the expenditure plan on this, but what we’re doing tonight is not putting this on the ballot,” Burt added. “It’s supporting the legislature to pass legislation that will allow it to go on the ballot.”
If SB 63 passes and goes to the ballot, voters in Alameda, Contra Costa, San Francisco, San Mateo and Santa Clara counties will decide whether to approve a half-cent sales tax to fund transportation, generating an estimated total of over $1 billion for the region.
Critically, the regional measure would only need a simple majority to pass in November 2026, Burt explained. Santa Clara County would need to pass a tax measure by a two-thirds majority if it was trying to fly solo to fund its transportation — an option that VTA staff explored but ultimately did not recommend.
Given support for an additional tax is lower in Santa Clara compared to other participating Bay Area counties, Burt said the VTA can lean on support elsewhere to get the bill passed.
Santa Clara County could generate approximately $313 million of that by fiscal year 2031. And with several hundred million left over each year, VTA staff suggest that the money would not only address the deficit but also fund significant improvements in speed, reliability and cleanliness.
“Can we as a region come together to take on the crisis of looming public transit fiscal operating cliffs facing many agencies, and do so in a way that still protects our local priorities?” said VTA Board Vice Chair Matt Mahan, who is also the mayor of San Jose. “I think after three years, and a lot of meetings and negotiations, we’re poised to take a major step forward.”
The day before Santa Clara County voted to join the regional measure, San Mateo County did the same.
“We’re facing a pivotal moment, and this measure gives county voters a chance to decide how we secure sustainable, long-term funding for public transportation,” said SamTrans Board Chair Jeff Gee.
SamTrans could see around $135 million in revenue from the measure, should voters pass it.
The state legislature is on recess until Aug. 18, and representatives have until Sept. 5 to amend the bill on the floor.
In the meantime, the VTA Board will work on an expenditure plan and a public engagement plan to determine how and where to dole out the anticipated revenue from SB 63.
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