Governor Newsom unveils 2025-26 state budget, which misses clean energy opportunities
SACRAMENTO, CA—Today, Governor Newsom and his administration unveiled California’s 2025-26 $322 billion budget. Despite touting no deficits, the budget notably misses opportunities to significantly increase funding for energy resilience and clean energy by effectively leveraging the $10 billion in climate bond (Proposition 4) funds in addition to General Fund investments.
“As California grapples with one of the largest wildfire crises in history, clean energy and energy resilience programs must remain at the forefront of the state’s strategy,” says Advanced Energy United’s California policy lead Edson Perez. “This is a critical moment in time when homes are burning, energy prices are soaring, and the state’s energy infrastructure is under significant strain.”
National business association Advanced Energy United urges Governor Newsom and state leaders to commit to programs and policies that strengthen climate mitigation and clean energy programs. These programs offer long-term affordability solutions, support grid reliability, and protect communities that are the most vulnerable and are critical in advancing California’s resilience, safety, job growth, and ensuring long-term energy affordability.
“Through Proposition 4, California voters sent state leaders a clear message that climate mitigation is a priority, and clean energy programs are a key part of that. This is especially relevant now as the state is facing the increasingly devastating effects of climate change,” adds Perez. “California leaders must use climate bond funds in addition to, not instead of, General Fund investments to fund clean energy, clean air, and climate mitigation programs. With the right combination of clean energy technologies and smart policies, California can better respond to emergencies and build a more resilient and affordable energy future.”
United looks forward to working with the Governor and legislature to produce a budget that prioritizes clean energy and climate resilience.