California Transit, Housing, Environmental and Labor Coalition Urges State Leaders to...

**PRESS RELEASE**

(Sacramento, CA) - A broad coalition of more than 80 transit, affordable housing, transportation, environmental, labor, business, local government, and community organizations renewed its call on Governor Gavin Newsom and legislative leadership to uphold California's funding commitments to critical climate and community investment programs. This week, the coalition submitted a formal letter to leadership with its list of funding priorities. The action comes following the May vote by the California Air Resources Board, which put into jeopardy billions in Greenhouse Gas Reduction Fund (GGRF) programs, and the June adoption of a state budget, which holds open final actions on GGRF expenditures.

Organized by the California Transit Association, the coalition is urging state leaders to use General Fund resources in Fiscal Year 2026-27 to maintain promised funding levels for the Affordable Housing and Sustainable Communities Program (AHSC), the Transit and Intercity Rail Capital Program (TIRCP), the Low Carbon Transit Operations Program (LCTOP), the AB 617 Community Air Protection Program, and the Safe and Affordable Drinking Water Program (SAFER).

"Just one year ago, state leaders made a promise to Californians to invest funding collected from the state's largest polluters in community-focused programs that build a cleaner, more affordable state through affordable housing, cleaner transit vehicles, and new transit service. Now some state leaders are disavowing that commitment and arguing that community investment was never central to the newly renamed "Cap-and-Invest" program," said California Transit Association Executive Director Michael Pimentel. "Failing to follow through on the state's commitments to fund these programs breaks faith with Californians struggling through the impacts of climate change, poor air quality, and rising costs, weakening our state's climate progress and undermining efforts to make our state more affordable."

"Californians deserve to live, get around, breathe clean air and drink clean water regardless of where they live or how much money they make. These funding cuts threaten programs that Californians rely on every day, from public transit and affordable housing to clean air and safe drinking water. The cuts are out of step with California's values and the legislature's own commitments. We call on the legislature to restore this funding this year and establish stable sources of funding for the future," said ClimatePlan Director Lesley Beatty.

Under SB 840, the state committed to annual funding levels of:

• $840 million for AHSC
• $400 million for TIRCP
• $200 million for LCTOP
• $250 million for AB 617
• $130 million for SAFER

However, current expenditure estimates for FY 2026-27 fall far short of those commitments, reducing funding by approximately 82 percent across the programs.

"Over the last decade, the Greenhouse Reduction Fund has helped close California's affordable housing gap - funding over 22,000 affordable homes," said Jimar Wilson, VP & Market Leader for Enterprise Community Partners. "The dramatic reduction in funding from the Greenhouse Gas Reduction Fund means that unless additional dollars are made available, these investments will disappear for the communities counting on them. These cuts will make California even less affordable at a time when affordability is voters' number one concern, and reverse progress toward the state's climate goals."

The coalition is also urging state leaders to honor outstanding GGRF commitments to public transportation made under SB 125 and to work toward a long-term solution that protects these investments in future years.

Over the past decade, the programs funded through the GGRF have delivered significant benefits for California residents and communities:

• AHSC has funded more than 22,800 affordable homes while reducing greenhouse gas emissions by 6.6 million metric tons.

• TIRCP has supported 263 transit projects, created more than 13,000 jobs and has reduced emissions by 23.4 million metric tons.

• LCTOP has funded more than 1,100 transportation projects and services, many providing reduced-cost and fare-free transit options.

• AB 617 has financed thousands of community air quality improvement projects in pollution-burdened neighborhoods.

• SAFER has invested $1.8 billion in drinking water improvements benefiting 3.3 million Californians.

These programs are central to California's strategy for combatting climate change and making communities more affordable and accessible. Investments support affordable transit-oriented housing, cleaner transportation options, improved air quality, safe drinking water systems, and thousands of good-paying jobs throughout the state.

The Legislature has until August 31 to take action in this legislative session.

Read the coalition's latest letter to Governor Newsom and legislative leaders here.

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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