As Trump cedes global clean car race to China, Governor Newsom fights back with instant ZEV rebates for first-time buyers

What you need to know: Coming later this summer, California families buying their first zero-emission vehicle can get $3,500 off at the dealership. That instant rebate is the centerpiece of a broader $600 million package Governor Newsom signed into law, keeping California at the forefront of the global clean transportation race while Donald Trump's failed policies export good-paying American jobs overseas, driving up costs on goods and services nationwide.

SACRAMENTO - Starting later this summer, any California family buying their first electric vehicle can walk into a dealership and drive home with $3,500 already off the price. Governor Newsom today signed SB 168, a bill creating California's new ZEV instant rebate program, dedicating $135.5 million for an affordable clean-car future to be matched by an equal contribution from participating automakers. That instant rebate is the centerpiece of a broader $600 million zero-emission vehicle (ZEV) investment agenda included in the 2026-27 state budget.

Donald Trump is doing everything in his power to pollute our air and surrender the clean car industry to China on a silver platter. California is putting its foot on the accelerator. With our new instant rebate program for electric vehicles, we're making it easier for families to drive clean, breathe clean, and keep more money in their pockets. As California leads the world toward a clean future, our message is clear: no one can stop Californians from choosing vehicles that are better for their wallets and better for the air they breathe.

Governor Gavin Newsom

In partnership with the legislature, these investments take direct aim at the affordability gap Trump and Republicans in Congress created when they repealed the federal EV tax credit, handing China a head start in the global clean car race, and leaving American workers and families to foot the bill for Trump's reckless Middle East conflict and Big Oil giveaways.

How the instant rebate for first-time ZEV buyers will work

• $3,500 off new electric vehicles with an MSRP up to $50,000
• $1,750 off used electric vehicles sold for up to $25,000
• The rebate is open to any Californian buying their first ZEV

This investment is funded through the 2026-2027 state budget - delivering a balanced budget with ZERO deficit, this year and next, that is structurally sound, all while preserving historic reserves and continuing investments that make California more affordable, more competitive, and more prepared for the future.

The bigger picture: $600 million for California's clean transportation economy
The MyFirstEV instant rebate is part of a $600 million investment in California's affordable, clean-vehicle future. Funded through Cap-and-Invest revenue and smog-abatement fees, today's full package includes:

• $150 million for the Community Air Protection Program, which can support clean transportation projects.
• $19.8 million for Californians with lower incomes through  Clean Cars 4 All
• $35 million for clean off-road equipment through the Air Quality Improvement Program
• $135.5 million for  California's Clean Truck and Bus Voucher Incentive Project (HVIP) 
• $130 million to replace polluting heavy-duty engines through the Carl Moyer Program 

California doubles down on clean transportation investments

In January, the state surpassed  2.5 million cumulative zero-emission vehicle sales, far exceeding its original goal of 1.5 million ZEVs by 2025. Last September, San Bernardino County made history by  welcoming the first hydrogen-powered passenger train  into revenue service in North America. In May, Governor Newsom launched a  $1 billion rebate program for electric medium- and heavy-duty trucks, and in April 2025, announced  $500 million for 1,000 clean school buses  statewide. Demand for zero-emission bus and truck incentives has more than doubled year-over-year. 

The Golden State's commitment extends beyond consumer incentives. In the latest  Clean Transportation Program Investment Plan Update, the CEC allocated $98.5 million in light-duty zero-emission vehicle (ZEV) infrastructure funding for fiscal year 2025-2026 to focus on Level 1 and Level 2 charging in locations with longer vehicle dwell times, including at-home charging with a specific focus on multifamily residences.

Governor Newsom's  Build More, Faster - For All infrastructure agenda has driven historic investments in transportation that will benefit all Californians for decades to come. More than 29,000 California infrastructure projects are tracked at  build.ca.gov.

The gold standard for American EV infrastructure  

California is one of the  top states  for EV buyers and drivers. There are now  over 200,000 public and shared EV charging stations  statewide. EV chargers can be found at grocery stores, park-and-ride lots, and even gas stations, whereas shared EV chargers can be found at apartment complexes, workplaces, doctors' offices, sports facilities, and other parking areas with some level of restricted access. This statewide network of public and shared private chargers is in addition to the estimated 800,000 EV chargers installed in California homes.