State Air Board Ruling Puts Contra Costa Free-Fare Bus Programs at Risk

Contra Costa's bus operators came to a short June 1, 2026, meeting of the Bus Transit Coordinating Committee with a warning. A California Air Resources Board decision will pull millions in state transit money starting in fiscal year 2028, threatening free-fare and microtransit service. The committee also approved its FY2026-27 Measure J bus allocations 4-0, but only after members pressed staff for clearer reserve reporting as sales tax revenue stays flat.

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• CARB ruling strips funds starting FY28: Tri Delta Transit faces a gap of about $900,000, and County Connection stands to lose $1.5M in operating funds.
• Over 750,000 County Connection riders could feel the cuts, and part of nearly $30M in project funding faces clawback.
• Measure J bus allocations approved 4-0 after members requested a return of reserve reporting.
• County Connection requests reconciliation of the original 3% Measure J reserve, and staff agreed to provide it.

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CARB Decision Opens a Hole in Transit Budgets

The basics: The California Air Resources Board (CARB) administers several state funding streams that help pay for transit operations and projects. Operators said a ruling CARB adopted last week removes several of those funding buckets from its budget beginning in FY28.

Why it matters: Operators said the money pays for free-fare programs and on-demand service in some of the county's lower-income and outlying areas. Losing it, alongside shrinking federal support, could mean fewer buses and the end of rider-free programs.

Where things stand: Vice Chair Rashidi Barnes of Tri Delta Transit raised the issue during the committee's correspondence and communication segment. There were no regular action items on the agenda.

He said the lost funding totals about $900,000 for Tri Delta. That money supports the agency's ride-free fare program and its TriMoRide microtransit service.

"We're already potentially starting in a hole of $900,000 in the negative," said Barnes.

Barnes connected the ruling to SB 63, which will appear on the November ballot, and to federal funding he described as drying up. He warned that the combined pressure will affect service in eastern Contra Costa County.

County Connection's exposure is larger: Committee Chair Bill Churchill, speaking for County Connection, described the agency's losses.

"The CARB ruling and decision on Friday will remove $1.5 million in operating funds from County Connection," said Churchill.

He said those dollars largely fund free rides in the Monument Corridor and downtown Martinez, as well as a route serving county services. The cuts, he said, "will negatively impact over 750,000 riders."

Churchill also flagged nearly $30M in state project funding for various County Connection projects. He said much of that money will be clawed back, but the share that would be recovered is still unknown.

Decisions and stakeholder impacts: The committee took no action. The operators' accounts still point to clear stakes for several groups:

• Riders in the Monument Corridor, downtown Martinez and East County who rely on free fares and microtransit stand to lose the most.
• Tri Delta Transit and County Connection face operating gaps beginning in FY28.
• County Connection's capital program carries added uncertainty until the clawback amount is known.

What's next: Operators did not identify replacement funding sources at the meeting. The November ballot measure and future federal funding decisions are the variables to watch.

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Measure J Bus Money Advances, With Reserve Questions

The basics: Measure J is Contra Costa's transportation sales tax. Two of its programs fund local transit: Program 14 pays for countywide bus services, and Program 16 pays for countywide express bus service. The funds are governed by the measure's Transportation Expenditure Plan (TEP).

Why it matters: These allocations help keep countywide bus and express-bus routes running. With sales tax income roughly flat, operators want to see how much is held in reserve and how much is being added to it.

Where things stand: Committee Member Rob Thompson pulled the two FY2026-27 allocation items from the consent calendar for discussion.

"In the past, these reports have normally included discussion on the reserves," said Thompson.

Staff member Danielle explained that the program carries two reserves:

• the 2022 Measure J reserve
• a special reserve tied to annual indexing based on the consumer price index (CPI)

"We have not seen anything above the 3% CPI in the last couple of years," said Danielle. She added that sales tax income is relatively flat and agreed to add deposit information back into future reports.

Churchill then said County Connection has formally asked CCTA staff to reconcile the original 3% reserve under the Measure J TEP. Danielle agreed to share that reconciliation with committee members.

Decisions and stakeholder impacts: The committee approved the full consent calendar on a roll call vote. Thompson made the motion, and Barnes seconded it.

• For: 4 (Member Anderchik, Thompson, Barnes, Churchill)
• Against: 0
• Absent: 0

Bus operators keep their FY2026-27 Measure J funding. They also gain a commitment to more transparent reserve reporting, which carries more weight as state funding erodes.

What's next: Staff will add reserve deposit details to future allocation reports. Staff will also deliver the 3% reserve reconciliation to committee members.

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Minor Items

• Youth Ride Free launches: Tri Delta and other small operators started the free youth fare program June 1, 2026.
• Ridership comparison requested: Barnes asked County Connection and WestCAT to report numbers compared with the prior week.
• Minutes approved: The March 2, 2026, summary of actions passed as part of the consent calendar.

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Looking Ahead

The committee's next regular meeting is proposed for Sept. 14, 2026, at 2:30 p.m. Watch for the 3% reserve reconciliation and early Youth Ride Free ridership numbers at that meeting.