Over 80 groups demand California governor, lawmakers fully fund climate programs

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🗞️ Driving the news: More than 80 California organizations including local governments, labor unions and climate advocacy groups are urging Governor Gavin Newsom and state lawmakers to protect funding for climate programs after changes to California’s carbon market raised concerns about lower revenues
• The coalition is asking the state to use general fund resources to guarantee funding for programs focused on affordable housing, public transit, safe drinking water and other climate-related initiatives

🔭 The context: California’s cap-and-invest program generates revenue by requiring major emitters to purchase pollution allowances. A portion of those proceeds is allocated to climate and community programs.
• Last year, lawmakers approved SB 840, committing nearly $2 billion from cap-and-invest revenues to five programs
• However, changes finalized by the California Air Resources Board (CARB) in April to reduce compliance costs for oil refineries are expected, according to the Legislative Analyst’s Office, to reduce climate program revenues by around $2 billion annually

The changes have created a political dispute over whether companies should face lower compliance costs or whether climate investments should be protected.

🌍 Why it matters for the planet: California’s cap-and-invest system is one of the largest carbon pricing mechanisms in North America
• Its revenues support not only emissions reductions but also climate adaptation measures and environmental justice initiatives
• A reduction in funding could slow investments in clean transportation, resilient housing, water security and pollution reduction, particularly in communities most exposed to climate risks

⏭️ What’s next: The coalition is calling on state leaders to guarantee funding regardless of future carbon market revenues
• Lawmakers will now decide whether to provide additional budget support or accept reduced spending on climate programs 

💬 One quote: “Failing to follow through on the state’s commitments to fund these programs breaks faith with Californians struggling through the impacts of climate change, poor air quality, and rising costs.” — Michael Pimentel, California Transit Association

📈 One stat: More than 80 organizations signed the letter calling for full funding of California’s climate programs

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