San Francisco Struggles to Fund Muni Amid Privatization Push

City leaders look to private companies like Uber and Waymo to replace essential public transit functions

Published on Feb. 26, 2026

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San Francisco's Muni public transit system is facing a $307 million budget deficit, with city officials proposing fare hikes, service cuts, and privatization as solutions. However, advocates argue that the city has long shirked responsibility for adequately funding Muni, dating back to the 1970s when state laws made it harder to raise property taxes. The pandemic provided an opportunity for officials to eliminate Muni lines they had already targeted for cuts, while pushing private transit alternatives like Uber and Waymo. Experts say the city lacks a clear, compelling vision for the future of public transit and is more interested in "optimizing" Muni than investing in it as a public good.

Why it matters

Muni has been San Francisco's publicly owned and operated transit system since 1912, providing essential transportation for residents and workers. The current budget crisis and push for privatization threatens the future of this public service, raising concerns about equity, accessibility, and the city's commitment to sustainable, community-oriented transit.

The details

The Muni budget deficit is not new, but the pandemic has exacerbated the problem. City leaders like former Transportation Director Jeff Tumlin used the pandemic as a pretext to suspend or eliminate Muni lines that had previously been targeted for cuts, despite a city charter requirement for Board of Supervisors approval to abandon any lines. Meanwhile, Mayor Daniel Lurie is promoting private transit options like Uber's Route Share program and allowing Waymo autonomous vehicles on formerly car-free Market Street, framing these as "innovations" to replace public transit. Advocates argue that the city has long failed to adequately fund Muni, with property tax reforms in the 1970s making it harder to raise revenue, and city leaders preferring to cater to the interests of wealthy businesses over investing in public services.

  • In March 1973, the Board of Supervisors adopted a 'Transit First' resolution to prioritize Muni and other transit over private vehicles.
  • In 2008, Mayor Gavin Newsom convened a panel to address Muni financing, but the panel dismissed proposals for new revenue sources like a transit assessment district or development fee.
  • In December 2019, Jeff Tumlin became the Director of Transportation and began targeting certain Muni lines for suspension or elimination.
  • During the COVID-19 pandemic in 2020, Muni suspended many of the lines that Tumlin had previously targeted.
  • In June 2022, Mayor Daniel Lurie announced $7 million in Muni budget cuts, followed by allowing Waymo autonomous vehicles on Market Street in August.

The players

Muni

The San Francisco Municipal Railway, the city's publicly owned and operated transit agency that has provided public transportation since 1912.

Daniel Lurie

The current mayor of San Francisco who has pushed for private transit alternatives to replace Muni.

Jeff Tumlin

The former Director of Transportation for San Francisco from December 2019 to December 2024, who used the pandemic to suspend Muni lines that had previously been targeted for cuts.

Dean Preston

A former District 5 Supervisor in San Francisco who advocated for expanding Muni service during the pandemic, but was opposed by the mayor.

Jason M. Henderson

A professor of geography and environment at San Francisco State University who has researched and written extensively about Muni and transit funding in the city.

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What they’re saying

“There were a lot of progressive attempts to create a commercial property tax, maybe a downtown property tax, or maybe just a citywide commercial property tax.”

— Jason M. Henderson, Professor of Geography and Environment, San Francisco State University (48hills.org)

“Before the pandemic, the city was studying congestion pricing as a way to find a reliable annual source of revenue for operations.”

— Jason M. Henderson, Professor of Geography and Environment, San Francisco State University (48hills.org)

“There were some short term concerns about if it works too well and lots of people get on your buses are you ready to handle that, which seems to me to be a great problem but I think, as with a lot of pandemic programs, for the austerity crowd, the billionaires and politicians that they have influence over, they were concerned about creating new normal on certain things.”

— Dean Preston, Former District 5 Supervisor (48hills.org)

What’s next

The city is currently considering a three-tiered parcel tax proposal to fund Muni, which would need voter approval. The judge will also decide on Tuesday whether to allow the mayor's $7 million in proposed Muni budget cuts.

The takeaway

San Francisco's struggle to adequately fund its public transit system highlights the broader tension between serving the public good and catering to the interests of private businesses and wealthy elites. Overcoming this will require bold political leadership to secure sustainable funding sources and a clear, community-oriented vision for the future of Muni.