January 9th, 2026 - ClimatePlan is concerned that Governor Newsom’s proposed 2026–27 budget would represent a step backward, making it more difficult and expensive for Californians to live and get where they need to go. 

ClimatePlan identified several areas of concern in the budget, including:  

• Insufficient funding for transit operations leaving agencies without enough resources to provide frequent and reliable service
• No increase for the popular Active Transportation Program, limiting communities’ ability to deliver safer streets for walking and biking
• No restoration of funding for e-bike incentives, a popular and effective program abruptly eliminated at the end of 2025

One welcome development is the inclusion of the Free Transit Pass program, which helps make transit more affordable for students, older adults, and low-income Californians.

More broadly, ClimatePlan had hoped to see greater alignment in the budget with the recent recommendations of the Transit Transformation Task Force, including progress toward stable operating funding for transit, expanded transit priority lanes, stronger last-mile walking and biking solutions, and improved service coordination across transit systems. 

Proposed Breakup of Affordable Housing Sustainable Communities (AHSC) program 

The governor’s budget proposes to break up funding for the AHSC program, which integrates housing, transportation and green space planning and has delivered affordable, well-located homes in disadvantaged communities. Under this proposal, transportation and housing investments would be separated across two different agencies. ClimatePlan is working to better understand the implications of this proposal, as it will directly impact projects that deliver meaningful improvements for Californians.

Aligning housing and transportation investments helps Californians live and get where they need to go affordably. They support strong, resilient communities and reduce the air pollution that sickens and kills thousands of Californians every year. 

‘How California funds and approves transportation and housing projects shapes daily life for millions of people. Funding public transit and safe streets for walking and biking in the budget is essential to connect Californians to jobs, school, healthcare, and their communities by making it possible to get around without relying on a car.’ said ClimatePlan Director Lesley Beatty. 

“ClimatePlan looks forward to working with state leaders and partners in the months ahead to improve the budget and advance solutions that meet Californians’ transportation needs.”

Contact: 

Lesley Beatty, Director 

[email protected] 

510-390-0440