San Francisco Bay Area Should Provide Free Public Transportation

The San Francisco Bay Area is beautiful, with fantastic weather, food, diversity and culture. We’re also internationally famous for our progressiveness, creativity, and innovation.

We believe the next amazing world-leading feature we can add to our cornucopia of attractions is Free Public Transportation. Imagine how wonderful it would be if Muni, BART, Caltrain, AC Transit, SamTrans, SF Bay Ferries, and all the other transportation services were absolutely free?

Providing this convenience would deliver enormous, varied benefits to the 7.6 million SF Bay Area residents, and would make us a lovable destination for tourists.

This goal - Free Public Transportation - is ambitious, but it isn’t impossible, or even original. Truth is, many people world-wide already enjoy free rides in their smart municipalities.

New York City mayoral candidate Zohran Mamdani is promoting free transit, with a plan that’s gained the endorsement of economists from Chile, United Kingdom, Greece, and the USA.

The entire nation of Luxembourg has offered free public transportation to both its citizens and visitors since 2020. Tallinn, the capital of Estonia, has given free transit to its residents since 2013. In France, thirty-five cities provide free public transportation. Ljubljana, the capital of Slovenia, offers free rides to seniors, disabled, and students. In Maricá (Brazil) – the entire municipal bus system is free. Delhi (India) – offers free metro and bus travel for women. Madrid & Barcelona (Spain) offer free (or heavily discounted) passes to youth and seniors.

Even in the USA, free public transit is already here. Kansas City, Missouri, has enjoyed a free bus system free since 2020. Olympia, Washington, has fully fare-free intercity transit. Missoula, Montana, is free for all riders. Columbia, South Carolina, has free buses, and Chapel Hill, North Carolina, has enjoyed free transit for over a decade. Ithaca, New York, and Madison, Wisconsin, offer free transit to students. Philadelphia has a Zero-Fare program for low income residents and a Key Advantage program that allows city employees to ride transit for free.

But if the San Francisco Bay Area offered free transit, we’d be the LARGEST municipality in the world to offer universal Free Transit to everyone, resident and visitor alike. (Population of Luxembourg is 666,430. Kansas City 510,704. Population of San Francisco Bay Area is 7.6 million in the nine-county area)

Providing free transit would be tremendously beneficial to millions of people, for three major reasons:

1. Combat Climate Change - increased public ridership would reduce harmful CO2 fossil fuel emissions. Estimates from Kansas City and Tallinn Estonia’s suggest an increase in ridership of 15 percent. Another estimate from a pilot project in New York City suggests a ridership increase of 30 percent. These increases in people taking public transportation instead of driving their own cars indicates a total reduction of 5.4 - 10.8 tons of emissions would be eliminated, leading to better air quality, improved public health, and long-term climate gains.

2. Reduce Traffic Congestion & Parking Difficulty - Estimates suggest public transit would decrease traffic congestion in dense urban areas and chokepoints like the Bay Bridge by up to 15 percent. Car ownership would also be reduced. Traffic in San Francisco is the second-slowest in the USA (NYC is #1) and getting worse every year. Parking costs in San Francisco are also the second-worst in the USA (NYC #1), and again, it is continually getting worse.

3. Promote Social Equity - Free transit removes a financial cost that hits low-income residents hard. Transportation is the second-biggest expense after housing for many Americans. In the Bay Area, a monthly Clipper pass can cost $86–$98 per system, and much more for multi-agency commuters. For people living paycheck-to-paycheck, this is a significant cost. People of color, immigrants, youth, seniors, and people with disabilities rely more heavily on public transit. 55–70% of frequent transit riders in the Bay Area are from low-to moderate-income households, but these riders usually pay more per mile of transit than wealthy drivers. Free fares equalize access regardless of income or geography.

Free transit would help people 1) take jobs they couldn’t otherwise afford to commute to, thus improving the economy, 2) Stay in school without worrying about bus fare, 3) Get to appointments, child care, or grocery stores without skipping meals to afford transit.

To conclude: Free Public Transit should be seen as a civil rights and economic justice intervention.

The Cost? How can San Francisco Bay Area pay for Free Transit throughout our large region?

Our initial plan is two-fold: to establish 1) FREE MUNI (San Francisco Municipal Transportation Agency), and 2) FREE AC TRANSIT (Alameda County).

To establish FREE MUNI, progressive measures are needed to gain $300-$400 million in annual revenue. Our plan is to acquire:

$60-$100 million via a High-Value Real Estate Transfer Surtax (adding a 1.5% surtax on property sales over $10 million)
$80-$120 million from a Tiered Parcel Tax on Commercial & Luxury Residential properties
$25-$40 million with a Ride-Hail Congestion Fee on all solo Uber/Lyft rides during peak hours (exempting seniors, disabled, and low income)
$60-$100 million via a Downtown Congestion Pricing $5 charge for private vehicles entering downtown SF
$75-125 million from a Big Business Transit Equity Tax (0.25% surtax on annual gross receipts over $50 million) applicable to corporations in finance, tech, and real estate.

Total gained would cover 100% of Muni operating budget required for Free Transit.

The goal of this revenue-collecting plan that targets only the wealthy would be elimination on all fares on Muni buses, trains, and cable cars, but with expanded service frequency (especially late-night) plus free youth and senior passes for BART, improved accessibility for disabled riders, and improved reliability with more operators.

An Equity Audit Board would oversee the measure and its enactment, with the majority of members from low-income and transit-dependent communities. this board would provide annual audits & public report cards, and guarantee that funds were not diverted to police, jails, or unrelated departments.

To establish FREE AC TRANSIT in Alameda County, the sum of $55 million/year needs to replace fare box revenue, plus an additional $42 million needs to be gained because the organization has a deficit of that amount. Our budget rounds up the total to $100 million, and raises the money using no regressive taxes. We suggest the following:

Progressive Parcel Tax on High-Value Properties assessed over $2 million. Precedent: Berkeley Measure P (2020) — Revenue $25M
High-End Commercial Real Estate Tax on large commercial property owners, targeting owners with over $5M or $10M in property countywide. Revenue: $15–$20M/year.
Employer Transit Annual Responsibility Fee, $150 per employee for companies with 500+ employees. Precedent: San Francisco’s “Transit Sustainability Fee” on developers - $20 million
Luxury Real Estate Transfer Tax (Mansion Tax) of 0.5-1% on properties over $3 million (residential or commercial). Precedents: Oakland’s Measure X (2018): Tiered Real Estate Transfer Tax, and San Francisco Prop I (2020): Increased transfer tax on $10M+ properties - Revenue: $15M/year.
Tech Wealth Tax Partnership.Voluntary or legislated contributions from large tech companies with offices in the East Bay. Precedents: San Francisco’s “IPO Tax” discussions (2019), Seattle’s “Amazon Tax” (JumpStart Seattle payroll tax) - Revenue: $15M
Commercial Vacancy Tax on landlords with storefronts or offices vacant >6 months. Precedents: San Francisco Prop D (2020): Commercial Vacancy Tax — Revenue: $5M
Public Bank Income that invests city reserves and redirect profits into transit.Precedent: California Public Banking Act (AB 857) - Revenue $5M
Greenhouse Gas Impact Fee on high-emission vehicles and large polluting businesses. Precedent: Bay Area Air Quality Management District - Carbon/Particulate Fees. — Revenue: $5M
Sales Tax on Luxury Goods of 0.5% (e.g., jewelry, yachts, private jets, etc.). Precedents: NY State “Luxury Tax” proposals, US Federal Luxury Tax (1990s precedent) — Revenue - $5 M
Philanthropic Fund / Foundation Grants. Potential Funders would be Hellman Foundation, East Bay Community Foundation, and Haas Jr. Fund - Revenue: $5M

Total gained would cover 100% of AC Transit budget required for Free Transit.

A Transit Equity and Climate Fund Board administered by the Alameda County Transportation Commission (ACTC) would be set up, composed of Labor reps (ATU, SEIU), Environmental justice groups, Disability and youth advocates. The group provides an annual public audit.

QUESTIONS - email sharethemoneyinstitute@gmail.com

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WRitten By

Hank Pellissier (director of Humanist Mutual Aid Network & Share The Money Institute)

References

Zohran Mamdani promotes free transit
(Source: https://www.thecity.nyc/2023/10/18/23921520/zohran-mamdani-mayor-2025-campaign-announcement)

Luxembourg free public transportation
(Source: https://www.chronicle.lu/category/mobility/53709-luxembourg-celebrates-5-years-of-free-public-transport)

Tallinn, Estonia - free transit
(Source: https://www.timeout.com/news/tallinn-made-all-public-transport-free-but-did-it-help-curb-emissions-110921)

France, thirty-five cities provide free public transportation.
(Source: https://www.cntraveler.com/story/free-public-transport-is-a-growing-trend-in-europe)

Ljubljana, Slovenia, offers free rides to seniors, disabled, and students.
(Source: https://ec.europa.eu/regional_policy/en/projects/slovenia/public-transport-in-ljubljana-is-catching-on)

Maricá (Brazil) – free municipal bus system is free.
(Source: https://www.yesmagazine.org/economy/2022/03/30/free-public-transit-marica)

Delhi (India) free metro and bus travel for women.
(Source: https://www.bbc.com/news/world-asia-india-50286343)

Madrid & Barcelona (Spain) free or heavily discounted passes to youth and seniors.
(Source: https://www.reuters.com/world/europe/spain-offers-free-public-transport-commuters-2022-07-12/)

Kansas City, Missouri - free bus system
(Source: https://www.bloomberg.com/news/articles/2020-01-16/how-kansas-city-made-public-transit-free)

Olympia, Washington - fare-free intercity transit.
(Source: https://www.intercitytransit.com/about/projects/fare-free)

Missoula, Montana - free for all riders.
(Source: https://mountainline.com/zero-fare/)

Columbia, South Carolina - free buses.
(Source: https://catchthecomet.org/about/fares/)

Chapel Hill, North Carolina - free transit
(Source: https://www.townofchapelhill.org/residents/transportation/transit)

Ithaca, New York - free transit to students.
(Source: https://www.cornell.edu/visit/parking-visiting/transit/)

Madison, Wisconsin - free transit to students. (Source: https://www.cityofmadison.com/metro/fares-passes/school-programs)

Philadelphia has a Zero-Fare program for low income residents https://www.phila.gov/programs/zero-fare/

Philadelphia offers Key Advantage program that allows city employees to ride transit for free. https://www.phila.gov/2025-05-28-city-workers-still-ride-septa-for-free/

Population of Luxembourg is 666,430 (Source: https://data.worldbank.org/indicator/SP.POP.TOTL?locations=LU)

Population of Kansas City: 510,704 (Source: https://www.census.gov/quickfacts/kansascitycitymissouri)

Population of SF Bay Area: 7.6 million (Source: https://www.bayareacensus.ca.gov/bayarea.htm)

Tallinn estimate suggests 15% increase in ridership
(Source: https://www.timeout.com/news/tallinn-made-all-public-transport-free-but-did-it-help-curb-emissions-110921)

Kansas City estimate suggests 15% increase in ridership (Source: https://www.kcur.org/news/2022-12-09/kansas-citys-free-bus-program-makes-transit-more-accessible-but-still-faces-challenges)

New York City pilot project showed 30% increase in ridership.
(Source: https://www.nyc.gov/html/brt/downloads/pdf/brt-phase2-report.pdf)

Emission reduction from shifting cars to transit are estimated at 5.4–10.8 tons of CO₂ per year.
(Source: https://www.transit.dot.gov/sites/fta.dot.gov/files/docs/publications/143671/transit-emissions-white-paper.pdf)

Public transit would decrease traffic congestion in urban choke-points by up to 15%.
(Source: https://www.transit.dot.gov/research-innovation/public-transportation-strategies-reducing-greenhouse-gas-emissions-technical)

San Francisco traffic is 2nd worst in the USA after NYC.
(Source: https://www.sfchronicle.com/sf/article/traffic-getting-worse-20024915.php)

Parking costs in San Francisco are second-worst nationally.
(Source: https://www.abc10.com/article/news/local/california/parking-in-san-francisco-expensive/103-dfd0f2e6-8d65-49cb-b257-f1bc392b4907)

Transportation is second-biggest expense for Americans after housing.
(Source: https://www.bls.gov/opub/ted/2021/transportation-spending-in-2020.htm)

Monthly Clipper Pass can cost $86–$98 per system, or much more for multi-agency riders.
(Source: https://www.clippercard.com/ClipperWeb/fares.do)

People of color, immigrants, youth, seniors, and people with disabilities rely more heavily on public transit.
(Source: https://www.spur.org/publications/white-paper/2022-10-18/creating-equitable-fare-policy-bay-area-transit)

55–70% of Bay Area frequent transit riders are from low- to moderate-income households.
(Source: https://mtc.ca.gov/sites/default/files/TM6_EquityAnalysis_final.pdf)

FOR SAN FRANCISCO (MUNI)

Real Estate Transfer Surtax of 1.5% on sales over $10M) would generate $60–100M
(Source: https://sfgov.org/scorecards/economy/business-tax-revenue)

Tiered Parcel Tax on High-End Properties would gain $80–120M
(Source: https://www.sfgov.org/ftp/uploadedfiles/tax/March2020ControllerReport.pdf)

Ride-Hail Congestion Fee would bring in $25–40M
(Source: https://www.sfcta.org/projects/ride-hail-congestion-fee)

Downtown Congestion Pricing of $5 per vehicle) would garner $60–100M
(Source: https://www.sfcta.org/downtown)

Big Business Transit Equity Tax of 0.25% on gross receipts >$50M) would earn $75–125M
(Source: https://sftreasurer.org/business-tax/city-business-tax-structure)

FOR ALAMEDA COUNTY (AC TRANSIT)

“Projected $41.5 million shortfall” https://www.actransit.org/press-release/new-ac-transit-fares-take-effect-july-1linkedin.com+3x.com+3linkedin.com+3linkedin.com+6actransit.org+6actransit.org+6

https://www.actransit.org/press-release/ac-transit-board-adopts-balanced-budget-for-fy-25-26scmtd.com+7actransit.org+7transformca.org+7

https://actransit.legistar.com/LegislationDetail.aspx?…ID=7429647

Progressive Parcel Tax on High-Value Properties assessed over $2 million https://ballotpedia.org/Berkeley,_California,_Emergency_Medical_Services_and_Fire_Protection_Parcel_Tax_Measure_P_(November_2020)

High-End Commercial Real Estate Tax https://ballotpedia.org/San_Francisco,_California,_Commercial_Rents_Tax_for_Child_Care_and_Education_Programs,_Proposition_C_(June_2018)

Employer Transit Annual Responsibility Fee https://sfplanning.org/resource/transit-impact-development-fee-tidf

Luxury Real Estate Transfer Tax (Mansion Tax) https://ballotpedia.org/Oakland,_California,_Real_Estate_Transfer_Tax,_Measure_X_(November_2018)
https://ballotpedia.org/San_Francisco,_California,_Real_Property_Transfer_Tax_Increase,_Proposition_I_(November_2020)