Statewide Coalition Expresses Appreciation for Senate GGRF Proposal

**PRESS RELEASE**

(Sacramento, CA) - A broad coalition of more than 80 transit, affordable housing, environmental, labor, business, local government, and community organizations submitted a letter to Governor Newsom and legislative leaders applauding the Senate's release of a new proposal to protect critical climate investments in the "Tier 3" programs in the Fiscal Year 2026-27 budget. While the letter voices support for the proposal's supplemental investments in transportation, climate, and environmental justice programs, it calls for the final budget agreement to also include funding for the housing component of the Affordable Housing and Sustainable Communities Program (AHSC), the state's primary affordable housing program and a pillar of the Tier 3 programs. The proposal responds to amendments to the Cap-and-Invest Program, adopted this spring, which have already resulted in an 82% reduction in climate investments in the Tier 3 programs. Click here to read the coalition's letter.

"We are deeply appreciative of the Senate's leadership to make sure that Greenhouse Gas Reduction Fund (GGRF) investments continue to move California toward its climate goals and an affordable, healthy, sustainable future. While we applaud the proposal's investments in transit and environmental justice programs, a comprehensive final deal must address voters' top concern: housing affordability. We urge the three parties to reach a final budget agreement that includes funding for affordable housing, as promised in last year's Cap-and-Invest deal. The Affordable Housing and Sustainable Communities program has been a centerpiece of GGRF since its inception and is California's largest ongoing source of funding for affordable housing production. Without this funding, fewer low-income Californians will receive the safe and stable affordable homes they deserve, and development costs will rise as projects wait for funding", said Housing California Executive Director, Chione Lucina Muñoz Flegal.

"We express our thanks to President pro Tem Limón, Senator Laird, Senator Reyes, and our transit champions in the Senate for their leadership at this critical time for California transit agencies and the communities they serve," said California Transit Association Executive Director, Michael Pimentel. "Their efforts to honor the state's funding commitments made just last year to preserve and expand transit service and improve critical infrastructure help move our shared climate, jobs, and affordability goals forward. We urge leaders in the Assembly to stand by their colleagues in the Senate by protecting these investments"

The letter acknowledges that the proposal omits supplemental funding for Tier 3 programs, including the Transit and Intercity Capital Program (TIRCP), as well as the housing component of AHSC.

The latest GGRF estimates produced by the California Department of Finance project a $663 million reduction in total annual GGRF revenue relative to the Governor's May Revise, a $900 million reduction in total annual GGRF revenue relative to the assumptions made in SB 840, and a cut of 82% for all Tier 3 programs in Fiscal Year 2026-27.

The Senate's proposal proposes the following support for Tier 3 programs:

• $107 million for the AHSC Affordable Housing Allocation (additional funding may be available from the November housing bond), currently no additional revenue beyond baseline provided.
• $76 million for the Transit and Intercity Rail Capital Program (TIRCP), currently no additional revenue beyond baseline provided.
• $218 million for the AB 617 Community Air Protection Program, an increase of $170 million.
• $171 million for the AHSC Sustainable Communities Allocation, an increase of $125 million.
• $198 million for the Low Carbon Transit Operations Program (LCTOP), an increase of $160 million.
• $188 million for SB 901 Forest Health & Vegetation Management, an increase of $150 million.
• $180 million for the Safe & Affordable Drinking Water Program (SAFER), an increase of $155 million.

"The Senate's proposal is a huge step in the right direction. However, the state's promises to fund affordable housing and public transit remain unfulfilled. Fighting for dollars year after year is not part of the blueprint for an abundant California," said Laura Tolkoff, Transportation Policy Director for SPUR. "Californians deserve homes that don't leave them stressed every time the mortgage is due, and they deserve modern, affordable, and dignified ways to get around."

Already, over the last decade, CARB reports that implemented projects funded by Tier 3 programs have delivered the following GHG emission reductions and benefits:

• AHSC
  • 6.6 million MTCO2e GHG emissions reduced
  • $4.85 billion invested, with $4.0 billion benefitting priority populations
  • 22,877 units of affordable housing funded 
• TIRCP
  • 23.4 million MTCO2e GHG emissions reduced
  • $2.74 billion invested, with $1.58 billion benefiting priority populations 
  • 263 transit projects implemented 
• LCTOP
  • 7.4 million MTCO2e GHG emissions reduced
  • $1.23 billion invested, with $1.14 billion benefiting priority populations
  • 1,123 projects and services implemented 
• AB 617
  • 282,500 MTCO2e GHG emissions reduced
  • $527 million invested, with $442.68 million benefiting priority populations 
  • 9,004 projects implemented
• SAFER
  • $1.8 billion invested, with 100% benefiting priority populations
  • Investments in 320 water systems serving 3.3 million people 

Inaction on this proposal puts California at risk of major backsliding on our progress toward our affordability and climate goals.

The letter urges the Legislature and Administration to work with the coalition to find a permanent solution for GGRF in future fiscal years so that Tier 3 programs receive the full funding committed just last year to make California more affordable and accessible for all.

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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