Muni and cable car fares are going up as part of the San Francisco Municipal Transportation Agency’s approved two-year budget, but a lot remains unknown about what Muni service will look like next year until after the upcoming November election.
The SFMTA board on Tuesday approved its operating budgets of $1.5 billion and $1.6 billion for fiscal years 2026–27 and 2027–28, which include eliminating the Clipper card fare discount and increasing the cable car fare, which will eventually rise to $18, with additional benefits.
“This has truly been the most challenging financial crisis for the SFMTA since I’ve worked at this agency, and it has not been easy to come up with a balanced budget,” said Julie Kirschbaum, director of transportation at the SFMTA.
The transportation agency is facing a $307 million deficit in the 2026–27 fiscal year that could grow to $434 million.
A regional measure is on the ballot that would increase the sales tax in San Francisco by 1 percent and in Alameda, Contra Costa, San Mateo, and Santa Clara counties by 0.5 percent. In total, the measure, if passed, could shore up nearly $1 billion for transit systems in the Bay Area, with the SFMTA estimated to receive $155 million annually to address its structural deficit.
The second ballot measure, if passed, would add a new parcel tax in the city that would continue addressing the SFMTA’s deficit and make service improvements. The SFMTA is expected to receive around $150 annually from the tax, with approximately $10 million to improve Muni service.
Officials warned that without new funding, Muni riders could face route cuts, longer waits, and service ending as early as 9 p.m.
Transportation officials warned that if one or both measures do not pass, the SFMTA would have to resort to slashing Muni service in four different categories: up to 20 Muni routes could be cut, wait times could double on Muni rail lines and rapid routes, service could end at 9 p.m., and cable car and F-Market/Wharves service could be reduced or eliminated. Those discussions about the possibility of reducing service, if needed, won’t start until next year.
What is known in the SFMTA budget is that they will be using a $200 million state loan to balance the books for the 2026–27 fiscal year. The loan, which the agency will have to pay back over 12 years, will act as a bridge for the SFMTA as they wait for potential funding from the two measures that will not start flowing into the agency approximately mid-2027.
Muni fares and some parking fees are also set to rise as part of the two-year budget.
Starting Jan. 4 next year, single-ride cable fares will increase from the current $9 to $12, while the SFMTA will introduce a new fare called the “Cable Car Plus Pass” that will cost $18. The pass provides unlimited travel on Muni for one day, including cable cars, and allows up to two youth (18 and under) to travel for free. The single-ride cable car fare will be eliminated the following year.
Additionally, the discount for single-ride fares on Muni for riders who use Clipper will be eliminated. With the elimination of the Clipper discount, the fare will rise from $2.85 to $3.00 next year and then to $3.10 the following year due to fare indexing.
Adult “M” monthly passes will go up from $86 to $90, and adult “A” monthly passes will increase from $104 to $108 next year. The SFMTA will introduce fare capping in 2028, where riders will be granted the use of Muni for the rest of the day after paying for two single-ride trips.
The base rate for parking meters will increase by 25 cents, while late penalties for parking citations will increase by 10 percent, and online credit fees will now be passed through to customers.
Following the SFMTA’s board approval, the budget will be submitted to the mayor’s office and then to the Board of Supervisors for consideration of approval.
