Greenlining’s Response to Governor Newsom’s 2025-26 California Budget Proposal

Today, as wildfires continue to ravage Los Angeles, Governor Newsom released his 2025-26 state budget proposal.

The wildfires are a painful and powerful reminder of the devastating impacts of the climate crisis, with communities of color and low-income communities at the intersection of economic and environmental injustice bearing the worst consequences in the long run.

Gov. Newsom is touting this year's budget as a win compared to previous deficit years. But while the budget includes some investments in economic development, innovation, and affordability, Gov. Newsom's proposal fails to backfill critical climate resilience and equity programs that were cut in the past to balance the budget. And unjustified delays to implement community resilience and extreme heat mitigation funding secured last year through Prop 4, California's Climate Bond, beg the question: what is California waiting for? Climate catastrophe in our communities is here now. We are out of time.

In the coming weeks, we will bear witness to the true cost of this budget horsetrading as our communities face the aftermath of these wildfires with no economic safety net, abysmal insurance protections, and no clear plan to equitably build resilience. At the same time, President-elect Donald Trump has pledged to dismantle environmental regulations and significantly reduce the Environmental Protection Agency's budget, raising major concerns about the future of U.S. climate action. These proposed federal rollbacks, combined with state-level inaction, leave us at even greater risk.

The Greenlining Institute is calling on California to step up. We desperately need bold, equity-centered, and long-term investments that prioritize California's vulnerable families. We deserve a system grounded in equity that is designed to withstand the political and economic ups and downs. That's what we need to close the racial wealth gap and create paths for communities to build intergenerational wealth. We cannot afford to have critical equity investments undermined or defunded because Wall Street had a bad quarter.

It's time for a stable budget that puts communities of color and low-income communities that face the worst consequences of climate and economic crises first-prioritizing equitable, sustainable investments to ensure all Californians, especially those on the frontlines, can survive and thrive.