On May 14, Governor Newsom released his proposed state budget for 2026-2027. This “May Revise,” as it’s known, is an update to the budget the governor originally proposed in January, which included devastating cuts to state climate investments.
The budget process is complex, but it’s an incredibly important piece of California’s climate progress. Our state’s ambitious goals for reducing pollution and deploying climate solutions mean little without proper investment to back them up.
After several years managing a multibillion-dollar budget deficit, the latest state revenue projections are up by about $25 billion. That should be good news for several of the climate programs that were on the chopping block earlier this year, but it’s not a guarantee.
At The Climate Center, we’re advocating for budget solutions that advance California’s climate leadership and put people before corporations. Here are three things to keep an eye on in Governor Newsom’s May Revise:
- The fate of affordable electricity programs: The Demand Side Grid Support (DSGS) program has been one of California’s best tools for making electricity more reliable and affordable, but Governor Newsom’s January budget proposal kills this program entirely. After significant pushback from advocates (including us at The Climate Center) and the legislature, we’ll be watching to see if funding is restored.
- Making electric vehicles accessible to everyone: Last year, Trump repealed federal incentives for EVs and other climate solutions, making it harder for low and middle-income families to afford EVs. To keep the transition to clean transportation on track, it’s critical that the state step in where the federal government has failed consumers. We’re advocating that rebates to first-time EV buyers be included in the state budget.
- Support for former oil and gas workers: The Displaced Oil and Gas Workers Fund (DOGWF) is the only program in the state that helps fossil fuel workers transition to new jobs as we leave oil and gas behind. Currently a pilot program, it’s time to make this effort permanent to ensure that workers and their families are taken care of in the transition to clean energy.
After the governor’s budget is released, it has to be approved by the legislature this summer. So there’s still time to fight for investments in clean energy, natural climate solutions, affordable electricity, and more!
This blog first appeared in The Climate Center’s bi-weekly newsletter. To keep up with the latest climate news and ways to take action for a climate-safe future, subscribe today!
