In order to help fill an estimated $238 million, four-year budget gap, Alameda-Contra Costa Transit is hiking bus fares for the first time since 2020. 

The two-county, bus-only transit agency will phase in the increases starting in July, with the local adult cash fare going up from $2.50 to $2.75 and the transbay cash fare rising from $6 to $6.50, according to AC Transit officials.

The second phase includes another 25-cent increase, which will bring the local cash fare to $3 in July of 2026. 

“The approved fare adjustment is expected to generate $4.1 million in revenue in the coming fiscal year. By the end of FY 2026/27, the additional fare revenue is projected to reach $7.9 million,” according to an announcement from the agency.  

AC Transit hasn’t raised fares in years while using pandemic-era federal funding to offset some of its ridership losses that continue to linger since the end of COVID-19 travel restrictions and social distancing mandates. 

In addition to the fare hikes, the agency said it is looking for “efficiencies within our operations to reduce costs” and alternative funding sources.  

Kiley Russell writes primarily for Local News Matters on issues related to equity and the environment. A Bay Area native, he has lived most of his life in Oakland. He studied journalism at San Francisco State University, worked for the Associated Press and the former Contra Costa Times, among other outlets. He has covered everything from state legislatures, local governments, federal and state courts, crime, growth and development, political campaigns of various stripes, wildfires and the aftermath of Hurricane Katrina.