Fare collection updates from AC Transit and TTC

The Alameda-Contra Costa Transit District (AC Transit) is raising fares to adjust for a looming financial cliff while the Toronto Transit Commission (TTC) is cracking down on fare evasion. 

AC Transit 

The AC Transit Board of Directors approved a two-phase fare adjustment, raising the local adult cash fare by $0.25 from $2.50 to $2.75 and increasing the Transbay cash fare from $6.00 to $6.50, effective July 1, 2025. A second $0.25 increase will bring the local cash fare to $3.00 on July 1, 2026. 

AC Transit notes the board determined the fare adjustment protects service while minimizing financial impacts on riders. The agency has not raised fares since January 2020, despite the board’s five-year plan for gradual increases, which began with local fares in 2018 and Transbay fares in 2019. However, the COVID-19 pandemic’s severe impact on service and ridership led policymakers to postpone fare adjustments. As a result, emergency grant funding from the American Rescue Plan Act (ARP) of 2021 was used to stabilize operations and sustain service levels. 

With emergency ARP funds now depleted, several years of stagnant fares and an unexpected fiscal update from the Metropolitan Transportation Commission (MTC), AC Transit says it is facing a looming budget shortfall. 

According to the agency, the projected four-year gap has increased by 55 percent, from $149 million to $238 million, beginning in the next fiscal year, with a shortfall of $45 million. The agency says the shortage will grow to approximately $72 million in fiscal year 2026-27. 

To help mitigate the significant deficit, AC Transit notes the approved fare adjustment is expected to generate $4.1 million in revenue in the coming fiscal year. By the end of fiscal year 2026/27, the additional fare revenue is projected to reach $7.9 million. 

AC Transit notes it is considering more than fare increases to avoid unwanted impacts on service, including finding efficiencies within  operations to reduce costs. According to the agency, it is working closely with regional partners to identify alternative funding sources that can help address the budget shortfall. 

The agency remains actively involved in the MTC-managed Clipper START discounted fare program. Through Clipper START, AC Transit eligible low-income riders have a 50 percent discount on AC Transit fares. AC Transit notes participation has seen significant growth, with recent reports showing the agency’s START program has saved riders over $136,000 from the 50 percent discount in the final three months of 2024 alone.  

AC Transit says it will also continue the $0.25 discount for Clipper and mobile fare payments. Pass prices and discounted fares will also adjust based on their existing multipliers. 

TTC 

TTC is expanding its crackdown on fare evasion to all modes of transportation, including its bus network. 

The agency says customers riding streetcars and entering subway stations through fare gates have already been subject to random fare inspections. Adding the bus network is another step in the TTC’s enhanced efforts to protect some of the C$140 million (US$97.7 million) lost to fare evasion yearly.  

“Despite a significant operating subsidy from the city of Toronto, the TTC still relies heavily on the farebox to fund our service. When people don’t pay, that impacts our ability to increase service and keep fares down,” said TTC CEO Greg Percy. “Our preference is that all customers pay for their rides rather than issuing tickets. We must let those who intentionally cheat the system know we’re serious.” 

To maximize efficiency, TTC says inspections will be carried out on bus platforms at integrated stations where customers could be required to show proof-of-payment between exiting buses and entering the subway system. The agency notes all fare inspectors will be uniformed and equipped with body-worn cameras to record customer interactions and will continue to use discretion to ensure tickets are issued fairly. 

According to TTC, this is the third new fare evasion initiative implemented in the past several months, as the agency has started closing the no-tap fare gates at subway stations, and in December, plain clothes fare inspectors were introduced.