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Transportation is evolving in California and the Bay Area, with several new measures proposed for 2026. Here’s what you need to know about the changing commuting landscape.
2026 is shaping up to be a pivotal year for transportation in California. Rising fares, funding crises, and high-profile ballot measures are putting a statewide spotlight on public transit, while changes to carpool requirements are putting pressure on drivers. No matter how you get to work, and how often you do it, the commute in California is changing.
At the same time, employers must navigate commuter benefit mandates, return-to-office considerations, and sustainability goals, while keeping employee well-being a top priority. And while 50% of employees cite commuting as the biggest barrier to being in the office, we’ve seen that subsidized commuter benefits are linked to higher retention and longer tenure, especially for healthcare and shift-based workforces.
Every Bay Area organization with a commuting workforce—from part-time shift workers to hybrid teams to full-time employees—has an opportunity to use this moment to shape the future of their workforce’s commute for the better.
Commuters, employers, and transit agencies in the Bay Area and across California are on the cusp of important changes that could reshape how people get to work in 2026 and beyond.
These proposals arrive as public transit faces a fiscal cliff: ridership revenues remain below pre-pandemic levels, labor and maintenance costs keep rising, and federal relief funds are running out. Without new funding, service cuts or fare hikes are likely, disproportionately affecting those who rely on transit to get to work.
Here's a rundown of the ballot measures and local programs commuters and employers should be aware of:
While the fate of these measures is still to be determined, it's clear that political leaders are thinking about the future of transportation, and how reliable public transit can benefit everyone. Coupled with new innovations in transit fare collection, many cities in California may soon benefit from more seamless, sustainable commuting options.
In 2025, the Metropolitan Transportation Commission (MTC), which oversees regional planning and operates the Bay Area’s Clipper fare payment system, is seeing a long-term investment in payments technology come to fruition with new Tap-to-Pay fare collection across the region.
This next-generation Clipper system allows riders to pay directly with contactless credit or debit cards (either physical cards or digital cards loaded to smartphones or smartwatches), eliminating the need to preload and carry around a Clipper card.
Tap-to-Pay launched on BART on August 20, 2025, with other Bay Area transit operators like Muni, Caltrain, and AC Transit expected to follow suit before the end of the year. Elsewhere in California, Los Angeles, Sacramento, and Monterey have already rolled out Tap-to-Pay, with more expected in 2026.
For riders, this means faster payments and fare gates, less confusion about balances, and more seamless transfers. And for employers, it opens the door to more flexible commuter benefit programs that align with how employees actually commute today.
With all these changes on the horizon, now is the right time for employers to rethink how they support commuting.
When most people think of commuter benefits, they picture traditional pre-tax benefits, which let employees set aside part of their paycheck before taxes to cover commuting costs. While helpful, this model is underutilized and outdated. Employees who stopped commuting daily during COVID often have balances sitting unused in their commuter accounts, and rigid pre-tax rules don’t always reflect today’s hybrid work patterns.
But now, employers have the freedom to offer benefits that employees will actually use and enjoy:
At Jawnt’s west coast office in San Francisco, we’re keeping tabs on changes in legislation and technology while working with transit agencies, local governments, and employers to design transportation programs that move more people more efficiently, without stretching employer budgets.
For HR teams, choosing a dedicated commuter benefits platform does more than improve employee participation and well-being. It offers clearer insights into how benefits are used (helping employers fine-tune programs over time), and saves hours of admin work by shifting onboarding, support, and commuting questions to a team of transportation experts.
Curious about how your organization can take advantage of emerging commuter benefit practices? Drop us a line, we’d love to help!
