**PRESS RELEASE**
(Sacramento, CA) – A broad coalition of housing, transportation, environmental, labor, and local government organizations today called on Governor Gavin Newsom, Senate President pro Tempore Monique Limón, and Assembly Speaker Robert Rivas to uphold the state’s funding commitments to critical climate and community investment programs following a critical vote by the California Air Resources Board (CARB) that jeopardizes billions in critical project funding.
For weeks, the coalition has expressed deep concerns to the Governor and CARB over proposed, and now adopted, amendments to the state’s Cap-and-Trade program—now known as “Cap-and-Invest”.
“CARB’s action today undoes years of progress in delivering affordable housing, expanding transit access, and improving air quality,” California Transit Association Executive Director Michael Pimentel said. “We urge state leaders to honor their commitments and preserve stable funding for programs that are central to California’s climate and equity goals.”
“Gas is approaching $7 a gallon in the Bay Area, yet the changes that CARB adopted today will gut the biggest sources of funding for transit projects. This coalition is calling on legislators to find a path forward that invests meaningfully in public transit that is frequent, reliable, and safe—or we will forever be vulnerable to spikes in gas prices,” said Laura Tolkoff, Transportation Policy Director for SPUR.
$1.65 Billion in Annual Funding at Risk
The coalition estimates that the amendments could reduce Greenhouse Gas Reduction Fund (GGRF) revenues by approximately $2 billion annually, resulting in the loss of up to $1.65 billion each year for programs including:
- Affordable Housing and Sustainable Communities Program (AHSC) – $800 million
- Transit and Intercity Rail Capital Program (TIRCP) – $400 million
- AB 617 – $250 million
- Low Carbon Transit Operations Program (LCTOP) – $200 million
These funding levels were reaffirmed less than a year ago through legislative action extending the Cap-and-Invest program through 2045.
Since 2015, these GGRF programs have served as a cornerstone of California’s climate strategy, delivering measurable greenhouse gas reductions while addressing affordability and equity challenges statewide. According to CARB data:
- AHSC
- Reduced 6.6 million metric tons of greenhouse gas emissions
- Invested $4.85 billion, with $4.0 billion benefiting priority populations
- Funded 22,877 affordable housing units
- TIRCP
- Reduced 23.3 million metric tons of emissions
- Invested $2.74 billion, including $1.58 billion for priority communities
- Delivered 263 transit projects
- AB 617
- Reduced 282,500 metric tons of emissions
- Invested $527 million, with $442 million benefitting priority populations
- Implemented 9,004 projects
- LCTOP
- Reduced 7.4 million metric tons of emissions
- Invested $1.23 billion, with $1.14 billion benefiting priority populations
- Supported 1,123 transit projects and services
“We are concerned that CARB’s proposal, as currently structured, could weaken some of the very programs California is counting on to meet our climate, housing, and equity goals,” said Chione Flegal, Executive Director of Housing California. “AHSC works because it brings these issues together: affordable homes, reliable transit, and cleaner air. As this proposal moves forward, we urge CARB and state leaders to protect funding for proven programs like AHSC.”
"In California, housing is the number one household expense and transportation is the number one source of greenhouse gas emissions" said Zack Deutsch-Gross, Executive Director at Transform. "We can't solve the affordability crisis or the climate crisis without a fully-restored Cap-and-Invest program."
The organizations strongly supported the 2025 legislative package—AB 1207 (Irwin) and SB 840 (Limón)—which extended the Cap-and-Invest program through 2045 and preserved continuous appropriations for these programs.
However, newly approved CARB amendments undermine that agreement by increasing allowances for polluting industries while reducing revenues intended for climate investments.
The coalition is urging state leaders to work collaboratively to restore and protect the funding streams, warning that failure to do so could jeopardize California’s ability to meet its 2030 climate targets.
The California Transit Association represents more than 220 organizations, including public transit, commuter rail, transit allies, and support organizations statewide. Our organization advocates for budget and regulatory action that benefits transit-friendly policies, increased funding, and a balanced transportation system.
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