CALSTART Media Contact: Sasha Tenenbaum, stenenbaum@calstart.org

PASADENA, CA — On Friday, January 9, the Newsom administration released its 2026–2027 budget summary for the state of California. Following our own organizational budget analysis of how the administration intends to juggle its clean transportation spending priorities, CALSTART CEO Michael Berube issued the following statement:

“The governor’s budget remains a work in progress. On one hand, the one-time commitment to support electric vehicle incentives for light-duty drivers is welcome, as it helps offset the lack of federal incentives. On the other hand, the budget falls woefully short when it comes to incentives for zero-emission trucks, buses, and community mobility options.  

CALSTART CEO Michael Berube

“While the funding offered for light-duty purchase incentives sends a market signal to automakers and consumers alike, the proposal effectively zeros out $750 million in discretionary Greenhouse Gas Reduction Fund funding that was intended to support clean transportation programs, including incentives for trucks and buses. This decision would have real and lasting consequences for fleets, small businesses, and manufacturers, many of whom are California-based.  

“By focusing solely on light-duty vehicles, the proposed budget ignores California’s broader clean transportation ecosystem, harms the low-income communities that bear the brunt of pollution from medium- and heavy-duty vehicles, and walks back commitments the State Legislature made just last year to fund agreed-upon incentive categories. Clean transportation investments are a cornerstone of the state’s climate and clean air strategy, especially when those funds already exist and were explicitly set aside for this purpose. Making this funding available as intended would allow California to tackle its largest sources of greenhouse gas emissions and air pollution.

“While we understand the need to balance different priorities, we also know that there are options that strike a better balance, reinforce the state’s clean transportation leadership, and deliver a clear market signal to the clean transportation industry. We look forward to working with the governor’s office and Legislature to craft the final state budget.”   

BACKGROUND:

For more information on California’s leadership in clean transportation, read the recent Capitol Weekly op-ed, “Will California maintain its edge on clean transportation?” penned by CALSTART CEO, Michael Berube: 
https://ow.ly/v7OM50XUc7z. 

In the op-ed, Berube writes, “California’s industry leaders have made their position clear: They want to keep building, investing, and innovating in California, but they need the policy stability and market certainty that strong state leadership provides. Their recent letter to the governor reflects a shared expectation that California will reinforce its clean transportation leadership in the 2026–27 budget and beyond so companies can continue investing with confidence.”
 

About CALSTART

A mission-driven industry organization focused on transportation decarbonization and clean air for all, CALSTART has offices in New York, Michigan, Colorado, California, Florida, and Europe. CALSTART is uniquely positioned to build the national clean transportation industry by working closely with its nearly 200 member companies and building on the lessons learned from the major programs it manages for the State of California. CALSTART manages more than $1 billion in vehicle incentive and technical assistance programs in the United States and is leading a global effort to build the zero-emission commercial vehicle market.