SACRAMENTO, California — The Newsom administration kept climate funding largely intact in its latest budget proposal Friday, sparing major programs from cuts while acknowledging a loss of federal funds and tepid revenues from its carbon market.
What happened: The blueprint, which will likely be revised in a May presentation before being finalized in negotiations with the state Legislature in the summer, includes a proposal for one-time zero-emission vehicle incentives and for increasing spending on Cal Fire. It also details spending from the $10 billion climate bond passed in 2024 and backfills some federal cuts to water programs, though it stays mum on expected spending related to offshore wind or transit.
Why this matters: The budget proposal marks one of Gov. Gavin Newsom’s last opportunities to detail his spending priorities before he terms out.
ZEV incentives: Newsom proposed spending $200 million to establish a new light-duty zero-emission incentive program in the wake of the Trump administration’s elimination of the $7,500 tax credit for EV buyers last year.
