California Must Lead on Climate Action in Final State Budget Agreement

SACRAMENTO — Katelyn Roedner Sutter, California State Director at Environmental Defense Fund, released the following statement on Governor Gavin Newsom’s release of the May Revise budget for FY 2025-2026.

“Governor Newsom’s budget revision shows his continued prioritization of California’s climate leadership, despite state budget challenges and our nation’s leaders taking us backwards. We’re pleased to see state leaders honoring the will of the voters by directing Proposition 4 investments toward proven climate solutions. As climate impacts intensify, we encourage additional investment in programs like the Multibenefit Land Repurposing Program that support communities, protect public health, and build long-term resilience. Extending and strengthening California’s landmark cap-and-trade program this year is essential for the work ahead. We look forward to working with state leaders on an ambitious program to accelerate reductions in pollution contributing to climate change, increase affordability and equity, and ensure the state is on track to build a clean energy economy by 2045 and beyond."

By extending cap and trade to at least 2045, a new report from Environmental Defense Fund and Greenline Insights found significant affordability and economic gains for California: 

• $3.9 billion in net savings for California’s most economically vulnerable families (nearly $700 for families earning $70,000 or less, or 42 percent of families overall) and $2.2 billion in net savings for the vast majority of families (nearly $200 for families earning $200,000 or less, or 85 percent of families overall).

• 287,000 jobs created by cap-and-trade program investments — primarily in construction, agriculture and forestry, local transit, architecture, and engineering — with an average salary of $93,600.

• $55 billion in total economic growth supported by cap-and-trade investments across all 58 counties, with the greatest amount of growth occurring in Los Angeles County ($13.9 billion), Orange County ($3.2 billion), Kern County ($3.2 billion), Fresno County ($2.7 billion), and Alameda County ($2.7 billion).

In response to a report authored by the Legislative Analyst's Office about the cap-and-trade program, EDF released this Q&A to illustrate how unrealistic and incomplete assumptions inflate cost figures that can easily be misunderstood and misrepresented.