Making Cap-and-Invest Work
As California hammers out a reauthorization of its Cap-and-Invest Program (formerly Cap-and-Trade), Transform is advocating for a stronger, tighter program that prioritizes environmental justice.
Cap-and-Invest Reauthorization Sustains Vital Funding
On September 19, 2025, Governor Gavin Newsom signed legislation reauthorizing California’s Cap-and-Trade Program, now known as Cap-and-Invest. Reauthorizing Cap-and-Trade is a major victory, the culmination of a campaign Transform has been working on all year.
Funding affordable housing and sustainable transportation is fundamental to addressing climate change, encouraging economic prosperity for all Californians, and advancing equity. Therefore, we were thrilled to secure $800 million in ongoing funding for the Affordable Housing and Sustainable Communities Program, $400 million for the Transit Intercity Rail Capital Program, $200 million for the Low-Carbon Transit Operations Program, and $250 million for the Community Air Protection Program as part of the reauthorized Cap-and-Invest Program.
Advocacy matters
Transform and our allies worked hard to protect ongoing funding for critical programs when California reauthorized its Cap-and-Trade Program.
Any time there’s money on the table in Sacramento, many competing interests lobby for a share of it, and Cap-and-Trade would have been no different. However, Transform brought together our partners in transit and housing to work with environmental justice leaders around a shared vision for how the money should be spent. When a version of the budget showed funds from Cap-and-Invest being diverted to programs that would normally be paid for out of the general fund, we worked behind the scenes to direct carbon auction proceeds to projects that have been proven to have a positive impact on the climate.
And our advocacy paid off. We didn’t get everything we wanted in the new Cap-and-Invest Program (that almost never happens), but it’s a strong bill that delivers solid benefits for California.
It takes all of us to save the climate
The transportation and housing sectors have an enormous impact on our climate, and thus provide an enormous opportunity to reduce greenhouse gas emissions. Taken together, passenger vehicles and housing account for 34% of the total state greenhouse gas emissions.
This victory belongs to you. Your emails, calls, social media posts, and donations helped us build a strong, statewide coalition to preserve investments in affordable housing and transportation that reduce carbon emissions and improve lives. Thank you!
Cap-and-Invest is just one step on the way to the truly sustainable and equitable future that Transform is working to create. We hope you’re with us for the long haul.
