Overview

• Governor Gavin Newsom's 2025 budget proposal seeks to extend California's cap-and-trade program through 2045, maintaining its role as a key climate and revenue policy.
• The plan redirects $1.5 billion annually—rising to $1.9 billion by 2029—to Cal Fire for wildfire mitigation, using funds generated by pollution allowances.
• Newsom also proposes a guaranteed $1 billion yearly allocation from the Greenhouse Gas Reduction Fund for the high-speed rail project, enabling borrowing against stable revenue streams.
• Legislators have expressed concerns over funding volatility, demanding detailed project plans and stronger legislative input before approving fixed appropriations.
• Environmental justice advocates criticize the program for falling short on local air pollution reductions, urging reforms to enhance accountability and community involvement.