Tag Archive for: Affordable Housing

ClimatePlan Coalition Statement on Governor’s Proposed Budget

ClimatePlan is concerned that Governor Newsom’s proposed 2026–27 budget would represent a step backward, making it more difficult and expensive for Californians to live and get where they need to go. 

ClimatePlan identified several areas of concern in the budget, including:  

  • Insufficient funding for transit operations, leaving agencies without enough resources to provide frequent and reliable service
  • No increase for the popular Active Transportation Program, limiting communities’ ability to deliver safer streets for walking and biking
  • No restoration of funding for e-bike incentives, a popular and effective program abruptly eliminated at the end of 2025

One welcome development is the inclusion of the Free Transit Pass program, which helps make transit more affordable for students, older adults, and low-income Californians.

More broadly, ClimatePlan had hoped to see greater alignment in the budget with the recent recommendations of the Transit Transformation Task Force, including progress toward stable operating funding for transit, expanded transit priority lanes, stronger last-mile walking and biking solutions, and improved service coordination across transit systems. 

Proposed breakup of Affordable Housing program 

The governor’s budget proposes to break up funding for the Affordable Housing Sustainable Communities (AHSC) program, which integrates housing, transportation, and green space planning and has delivered affordable, well-located homes in disadvantaged communities. Under this proposal, transportation and housing investments would be separated across two different agencies. ClimatePlan is working to better understand the implications of this proposal, as it will directly impact projects that deliver meaningful improvements for Californians.

Aligning housing and transportation investments helps Californians live and get where they need to go affordably. They support strong, resilient communities and reduce the air pollution that sickens and kills thousands of Californians every year. 

“How California funds and approves transportation and housing projects shapes daily life for millions of people. Funding public transit and safe streets for walking and biking in the budget is essential to connect Californians to jobs, school, healthcare, and their communities by making it possible to get around without relying on a car,” said ClimatePlan Director Lesley Beatty. “ClimatePlan looks forward to working with state leaders and partners in the months ahead to improve the budget and advance solutions that meet Californians’ transportation needs.”

Contact: 

Lesley Beatty, Director 

[email protected] 

510-390-0440


Transform is a member of ClimatePlan.

Transform Opposes Anti-Housing Measure in Menlo Park

FOR IMMEDIATE RELEASE

Dec 4, 2025

Media Contact:  Zack Deutsch-Gross, Executive Director, Transform, [email protected], 415.637.0101

The 2026 citizens’ ballot initiative is a nakedly NIMBY attempt to prioritize parking over people  

A citizens’ initiative to block affordable housing on three city-owned parking lots in Menlo Park has now qualified for the November 2026 ballot. The City of Menlo Park had planned for at least 345 affordable homes on the site, but, if the initiative passes, it would be forced to run a citywide ballot measure before it could sell the land or “permanently diminish the availability, access, or convenience of parking”—a prerequisite to building affordable housing on the site. 

“Replacing empty parking lots with affordable housing is a no-brainer, especially in Menlo Park, where there are already great Caltrain, Samtrans, and free shuttle options,” says Transform’s Executive Director Zack Deutsch-Gross. “Transform strongly opposes this retrograde measure that places more value on car storage that sits empty much of the time than badly-needed homes for families.”

The measure would prohibit Menlo Park from selling, leasing, donating, disposing of, or conveying city-owned downtown parking lots without approval by a majority of voters. This would delay and possibly derail the city’s plan to build affordable housing on the sites. 

“San Mateo’s problems of displacement, homelessness, and long commutes will get worse if voters approve this measure,” said Transform’s Housing and Parking Policy Manager Julia Gerasimenko. “Not only will it take us further from our housing goals, but it will undercut transit investments and hurt local businesses in the long run.” 

The measure would also require that if the city intends to make any physical alterations to the downtown parking lots that would permanently diminish the availability, access, or convenience of parking, then the city must submit to the voters a subsequent ballot measure seeking authority to make such alterations prior to implementation. The measure further disallows any actions “which would diminish the availability, access or convenience of public parking for Downtown customers, workers and visitors.”

Parking is never free. It takes up precious civic space that could be devoted to other uses, such as more affordable housing to alleviate the critical shortage of affordable units throughout California and particularly on the Peninsula. Almost one-third of downtown Menlo Park is already dedicated to off-street parking. Residents and business owners pay for this overabundance of parking spots through higher rents, higher retail prices, and missed opportunities to build affordable housing or green space.  

Transform’s report, Parking Revolution/Housing Solution, showed how excess parking capacity generates higher vehicle ownership, traffic, and pollution, and reduces incentives for more affordable transportation modes. The Menlo Park initiative is a regressive and short-sighted attempt to lock the city into outmoded and disproven land use priorities, keeping the downtown core from becoming the vibrant, people-centered space it has the potential to be.

In addition to the parking and transit costs, the measure could make Menlo Park miss its housing development target, which is required by state law. If successful, it could create a new playbook for blocking affordable homes across California. Transform is committed to opposing this measure, which endangers Menlo Park and the entire Bay Area’s housing and transportation needs.

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Transform works to ensure that people of all incomes thrive in a world safe from climate chaos. We envision vibrant neighborhoods, transformed by excellent, sustainable mobility options and affordable housing, where those historically impacted by racist disinvestment now have power and voice.

Traffic Congestion Is a Housing and Transit Problem, Not a Highway Problem

One of the hardest aspects of transportation advocacy is that the solutions to transportation problems are often counterintuitive. Induced demand or induced travel is the best-known example of this: when you widen a highway, that encourages more people to drive on it, returning congestion to the original levels within a few years. But what we’re missing is that traffic congestion isn’t a problem that can ever be solved by building more or wider roads, because it’s not a problem with the highway.

Yet Caltrans keeps planning highway expansions, and California legislators and the governor continue to prop up these unsustainable projects.

Picking up the right tools to solve congestion

The United States has spent decades and trillions of dollars prioritizing driving and car-centric infrastructure. As a result, there will always be more demand for driving at peak hours than there will be space on the roadway. Thankfully, there are better ways to reduce congestion, like building infill, affordable housing near jobs, schools, and transit hubs, plus adding bus, walking, and rolling options.

Unfortunately, when all you have is a hammer, everything looks like a nail. In California, Caltrans is tasked with maintaining the highways and many state routes that wind through towns and cities, often serving as local roads and streets. This includes responding to problems on the roads, including backed-up traffic and slow travel times. For decades, Caltrans’ only tool to solve congestion has been roadbuilding, so that’s what it does — to the tune of $20 billion a year.

To truly solve California’s tangled traffic, we need to take the problem out of the hands of the road builders and address the root causes of congestion: building more affordable housing near jobs and improving public transportation options.

Wrong solutions create more problems

State Route 37, which connects Vallejo and other Solano County communities to Marin County and beyond, is the Bay Area poster child for wrong-headed highway widening. Caltrans proposes to spend $500 million to add lanes to a section of the roadway that will be underwater within the next couple of decades due to sea level rise. It’s a high price to pay for a very transitory solution.

And money isn’t the only cost of this destructive highway project. Governor Gavin Newsom just signed AB 697. The bill lifts limits on killing endangered species in the delicate marshland adjacent to the roadway during construction, clearing the way for Caltrans to bulldoze its plan through.

But even without the looming spectre of climate change, the SR 37 project won’t fix congestion because it doesn’t address its causes.  Marin County has more jobs than households, thanks to thriving businesses and tourist attractions, plus a strong science and technology industry, and workers gravitate to job centers in these locations. Meanwhile, Vallejo and neighboring communities on the other side of the Baylands have something the North Bay counties don’t: cheaper housing. The average rent for a three-bedroom unit in Vallejo is $2,476, while rent for the same unit in Marin is double that, at $4,995 a month. So workers in lower-income sectors —like the people who keep restaurants, hotels, tasting rooms, and spas running — are often forced to look far from their work to find housing they can afford.

The lack of affordable housing near jobs in North Bay communities is compounded by a lack of frequent and reliable public transit. This leaves workers with no choice but to drive between work and home, clogging SR 37. 

Widening a section of this highway to ease the congestion is like taking pain medication for a broken arm, but not setting the bone. You might feel better for a while, but you haven’t solved the problem.

Housing and transit are better investments

According to California’s Department of Housing and Community Development, Marin County needs to build over 14,000 units of new housing by 2031 to keep up with its housing needs. Building these homes is one of the best ways to reduce congestion — much better than adding new lanes to a highway that will simply be new surfaces for congestion in a few years. A report on the impact of California’s successful Affordable Housing and Sustainable Communities (AHSC) program showed that building 20,000 homes took more than 40,000 cars off the road each year. With a $500 million public investment, affordable housing developers could help finance thousands of housing units in the North Bay. 

Single-occupancy vehicles are a wildly inefficient way to move humans from one place to another. A recent study by the Climate and Community Institute modeled the impact of shifting $1 billion in highway spending to public transit. The study found that this shift saved almost $200,000 in congestion-related costs, as well as reducing vehicle miles traveled (VMT) by more than 1.8 million annually. Putting $500 million toward improved transit options would do much more to ease congestion on overcrowded roads like SR 37.

Highways aren’t drainpipes

Even the smartest engineer will come up with the wrong answer when they start with the wrong assumptions. For decades, our road planners have assumed that roads function like drainpipes: iIf the pipe is overflowing, get a wider pipe to handle the flow. 

A better metaphor for the network of streets and highways that connect our communities is as an expression of our desires, frustrations, and aspirations. Our roads show where we’ve failed by backing up traffic when transit and housing options are suboptimal. They show what we wish for with people creating ad hoc walkways to cut through too-long blocks and bike riders on sidewalks where streets are too dangerous. But our transportation systems can also highlight the best of us, lifting up our shared humanity and strengthening our social fabric, from the ubiquitous smile and head-nod of strangers riding the bus to the wave of a toddler zooming past on the back of an e-bike. 

Highway widening as the go-to solution for traffic congestion is a failure of attention and imagination. We need to direct the attention of the decision makers who allocate funding for transportation, housing, and transit to the true causes of congestion. And we need to expand our imagination of what’s possible to solve congestion from what has always been to what actually works. 

Transform is leading the fight to move beyond highways as the answer to every transportation challenge. We’re working to find real solutions that improve people’s lives and stop climate change. We hope you’ll join us.

Affordable Housing and Transit Are Smart Climate Investments

This post was written jointly by Transform and California Housing Partnership.

California has a reputation for being at the vanguard of environmentalism and climate change. The state’s creation of the Cap-and-Invest Program (formerly Cap-and-Trade) is a prime example. It sets limits on the emission of greenhouse gases (GHGs) and uses market forces to achieve those limits in the most cost-effective way. The proceeds from the sale of emission licenses are then invested in proven GHG reduction strategies that benefit all Californians. 

The evidence shows that California’s Cap-and-Invest Program has been a huge success to date and has become a model elsewhere in the United States as well as internationally. The only catch is that the program is currently authorized only until 2030, and uncertainty over its continuation is decreasing program funding and effectiveness. To address this, state leaders have proposed to extend the program through 2045 and signaled that they may want to make some changes in the process.   

As Governor Newsom and the California Legislature move to extend the Cap and Invest Program and reprioritize the investments, three programs in particular deserve continued priority support. The Affordable Housing and Sustainable Communities (AHSC) program, the Transit and Intercity Rail Capital Program (TIRCP), and the Low Carbon Transit Operations Program (LCTOP) have collectively reduced GHG emissions by over 36 million tons in the last ten years, equivalent to the annual emissions of the entire country of Sweden. 

AHSC makes housing affordable: By building affordable housing near transit, AHSC saves low-income households over $10,000 in rent per year, plus more in transportation costs, which is enough to pay for food for a year to help a low-income family stay out of poverty. 

AHSC is a good investment: Every dollar invested in AHSC from cap-and-invest revenue is matched by four dollars from other public and private sources, and 70% of the affordable housing approved under this program has already been built or is under construction. Fifty-six percent of the funds have been invested in communities most in need of environmental protection and economic opportunity. 

AHSC reduces traffic for everyone. A new report from California Housing Partnership and Enterprise Community Partners found that AHSC alone has led to 512 million fewer miles driven since its inception by enabling residents to live close to public transit and avoid driving for most of their trips. 



Public transit investment is vital to our regions. Cap-and-Invest’s transit programs, TIRCP and LCTOP, provide crucial funding to improve service and expand public transit systems that are still recovering from the decline in ridership they experienced during the pandemic. Many Californians don’t regularly ride public transit, but everyone benefits from reduced pollution and congestion on our roadways. The BART system in the Bay Area saves 1.2 million miles of driving every day. Without public transit, our roads would be endlessly clogged, and people who can’t afford to drive would be left without a way to get around.

Public transit creates jobs and affordable travel options. Major investments in public transit also provide high-quality jobs throughout the state and provide essential benefits to disadvantaged communities. Each dollar invested through TIRCP provides five times the value thanks to federal matching funds, while 94% of LCTOP dollars are invested directly in low-income and disadvantaged communities.

We call on Governor Newsom and the California Legislature to continue long-term commitments to these critical and successful programs. We further encourage the Governor and Legislature to improve the Cap-and-Invest Program by eliminating free emission allowances for the fossil fuel industry that are counterproductive to the program’s goals and harm sensitive communities. 

Climate, housing, and transit are three of the most critical challenges facing California. By preserving continuous funding for AHSC, TIRCP, and LCTOP, the governor and legislature have the opportunity to address all three simultaneously and comprehensively. That sounds like a perfect trifecta to us.

Email your legislators now and tell them you want Cap-and-Invest to fund housing and public transit.


Profiles in Pride

Bay Area LGBTQIA+ Transportation and Housing Advocates

Pride Month is extra poignant this year as queer and trans communities are under attack from the new regime in Washington. So it’s a good time to lift up some of the LGBTQIA+ community members who have worked toward housing and transportation equity in the Bay Area. 

Harvey Milk (1930–1978)

Harvey Milk, also known as the Mayor of Castro Street, was the first out gay candidate elected to office in California. After three unsuccessful campaigns for San Francisco City Supervisor, in 1976, Mayor George Moscone appointed Milk to the Board of Permit Appeals, making him the first out LGBTQIA+ commissioner in the United States. The following year, in November 1977, Milk won his election to the San Francisco Board of Supervisors, using his position to fight against anti-LGBTQIA+ efforts in California. On November 27, 1978, Milk and Mayor Moscone were assassinated by Dan White, a former member of the Board of Supervisors, in City Hall.

Roma Guy

Roma Guy was a founder of several community-based women’s and girl’s organizations such as SF Women’s Building, SF Women Against Rape, The Women’s Foundation, and La Casa de las Madres, a safe haven for women escaping abusive relationships. She served on the Mayor’s Local Homeless Board and the James Hormel LGBTQ Advisory Council for the SF Public Library.  She was appointed Co-Chair, along with the Director of Public Health and Sheriff, to the City/County and Community Jail Replacement Project 2016–2017, to develop alternatives to incarceration.

Whit Joaquin Guerrero

Joaquin Guerrero was the first Director of Our Trans Home SF, a BIPOC-led trans housing program. He led the opening of the first Transgender Navigation Center in the U.S. and helped envision the End Trans Homelessness initiative, the first initiative of its kind for trans and gender nonconforming people. Guerrero also served on the Trans Advisory Committee of the Office of Trans Initiatives and the City and County’s Shelter Monitoring Committee. He is currently a Program Officer for the Arlene and Michael Rosen Foundation, a mediator in supportive housing for the San Francisco Bar Association’s Conflict Intervention Services, and a Capacity Coach for the Transgender Strategy Center.

Megan Rohrer

Megan Rohrer has worked to support unhoused people, including LGBTQIA+ populations, for over two decades. They have worked on homelessness in their native Sioux Falls, SD, San Francisco, and Kona, HI. Since 2022, Rohrer has served on the Local Homeless Coordinating Board, which advises the San Francisco Department of Homelessness and Supportive Housing. They also serve as the co-chair of the San Francisco Local Homelessness Coordinating Board.

Courtney Brousseau (1997–2020)

Courtney Brousseau founded Gay for Transit, an LGBTQIA+ group that advocated for better transit in San Francisco. He was also a committed bike rider and bike advocate before he was tragically killed in a drive-by shooting at age 22.

Legislature’s response to the California budget provides a lifeline for transit, invests in housing, and ignores biking and walking

FOR IMMEDIATE RELEASE

Contact: Zack Deutsch-Gross, [email protected], (415) 637-0101

California legislators have agreed on a budget that prioritizes needed investments in affordable housing and provides a lifeline to Bay Area transit agencies facing fiscal cliffs. However, by prioritizing highways over active transportation, the budget misses a major opportunity to meet the scale of the climate crisis.

The two-party agreement in the legislature invests $500 million in Low-Income Housing Tax Credits (LIHTC) and $120 million to the Multifamily Housing Program, rejects the Governor’s proposal to cut $1.1 billion from transit programs, and provides Bay Area transit agencies with a $750 million loan to keep buses and trains running as they seek long-term operating funds.

“We applaud the legislature’s commitment to affordable housing and keeping our transit agencies afloat,” said Transform Policy Director Zack Deutsch-Gross. “These vital investments keep the Bay Area on track toward a 2026 regional transportation measure, which depends on the legislature passing SB 63 authorizing legislation later this year.”

However, the proposal fails to address the $400 million cut from California’s Active Transportation Program in last year’s budget. As a result, only 13 of the over 300 project applications to promote safe biking and walking will move forward.

“Instead of shifting dollars toward sustainable transportation alternatives, this proposal continues to fund Caltrans’ highway expansion agenda,” said Deutsch-Gross. “Even in tight budget years, the climate crisis demands more than preserving the status quo.”

While the legislature’s proposal does not mention reauthorizing Cap-and-Trade, now Cap-and-Invest, it does allocate $500 million to CalFIRE from the Greenhouse Gas Reduction Fund, limiting GGRF’s ability to support affordable housing, transit, and environmental justice priorities.

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Transform works to ensure that people of all incomes thrive in a world safe from climate chaos. We envision vibrant neighborhoods, transformed by excellent, sustainable mobility options and affordable housing, where those historically impacted by racist disinvestment now have power and voice.

Affordable Housing Benefits Everyone

Affordable, centrally located housing is key to California’s climate policy because high housing costs typically push low-wage workers to distant suburbs, trapping them in an expensive cycle of long commutes with few transit options. Our housing affordability policies affect people’s quality of life, transportation costs, and air quality for the region, as well as greenhouse gas emissions from their commutes. In fact, dense, infill affordable housing near transit is one of our best solutions to mitigate the climate crisis.

But the current version of California’s budget doesn’t guarantee funding for successful programs like the Affordable Housing and Sustainable Communities Program (AHSC) that are proven to reduce emissions by building infill affordable housing near transit across the state. Here are just a few of the benefits that affordable housing provides to its residents and the community at large — all reasons to provide more funding for affordable housing, not less.

Affordable infill housing fights climate change

VMT, short for vehicle miles traveled, is a measurement used by state and local agencies to measure and track emissions and the impact of infrastructure projects. Housing that’s far from jobs and transit can increase a region’s VMT. Moving to a central location with easy access to common destinations by walking, biking, or taking transit leads people to drive less, reducing VMT and emissions overall.

Last year, Transform used MTC data to calculate the GHG reductions from a proposed $10 billion affordable housing bond. Our analysis found that not only would affordable housing residents save money on transportation, but the affordable housing units near transit expected to be built with the bond proceeds would take 3 million tons of GHGs out of the atmosphere.

A 2015 working paper commissioned by the California Housing Partnership looked at VMT reductions from “location-efficient” housing by income level. Its bottom line finding was that, while people of different income levels had about the same level of VMT reduction in centrally located housing, low-income housing is a better investment for the environment. That’s because lower-income residents “live more compactly,” thus providing greater VMT reduction per acre.

However you look at it, affordable housing near transit and walkable destinations is an excellent investment for climate resiliency.

Affordable housing strengthens local economies

Siting affordable housing near central business districts provides several distinct economic advantages, as outlined in an article in the Planning Commissioners’ Journal. Businesses find it easier to hire and retain workers. And, when rents are low enough to leave households with extra spending money, low-income families are more likely to use those funds to buy necessities, boosting the local retail economy. 

Significantly, the article cites a report from the Center for Housing Policy, which found that, in most cases, affordable housing development had no impact on surrounding property values. That negates a common misconception that leads neighbors to oppose affordable developments.

An article in the Economic Development Journal addresses the same topic, detailing how affordable housing development contributes to communities’ economic competitiveness.

Affordable housing boosts educational achievement

Another paper by the Center for Housing Policy highlighted the significant impacts of affordable housing on young people’s education. Stable housing keeps children from losing ground if they have to change schools often due to frequent moves. Housing affordability may allow parents to work fewer hours, giving them more time and energy to participate in their children’s education. The provision of affordable units can allow families to move to better school districts where students have more educational opportunities. Affordable housing developments can lift up neighborhoods and communities, acting as a locus for enrichment activities such as after-school programs.

Transform board member Elizabeth Madrigal cited her family’s move to more affordable housing as the springboard that allowed her to further her education. Her family’s experience of the transformative power of stable, affordable housing inspired her to work in the field.

We need our state legislators and governor to guarantee the future funding for the Affordable Housing and Sustainable Communities Program (AHSC) that is proven to reduce emissions by building infill affordable housing near transit across the state. Take action now to show your support for this critical issue!

Transform Speaks Out in Sacramento

As the California legislature was moving bills through committees in the last couple of weeks, Transform traveled to Sacramento to advocate for and against critical bills. Jeanie Ward-Waller of Fearless Advocacy recently testified on our behalf at hearings on a bill to use environmental mitigation fees to fund affordable housing near transit and one that would lift environmental regulations ahead of a planned highway widening.

Testifying in committee is a powerful way to bring our message and expertise to decision makers as bills advance through the legislative process.

Leveraging CEQA to fund affordable homes near transit

Transportation makes up the largest share of GHG emissions in California and is increasing in large part due to entrenched land use and housing practices. If we are to meet the climate and air quality goals, we need to not only effectively address the additional driving caused by new highways and development projects, but also do so in a way that improves housing and land use patterns.

The California Environmental Quality Act (CEQA) requires projects to mitigate their environmental impacts, including the harms caused by driving, measured by vehicle miles traveled (VMT). When done well, VMT mitigation measures, which range from transit service and passes to bike/ped improvements and roadway pricing, can be an effective means of alleviating environmental harm. Affordable housing near transit is one of the best ways to mitigate VMT, but coordination between project sponsors and local housing developers is often tricky and fails to move forward.  

Under AB 1244 (Wicks), a developer can mitigate VMT impact by contributing an amount of money per extra mile of induced travel to a statewide Transit-Oriented Development Implementation Fund, where funds are then reinvested in affordable housing projects in the same region as the project, and ideally, the same city or county. 

The bill includes strong accountability and effectiveness provisions, tasking the Office of Land Use and Climate Innovation to set an accurate price for VMT reduction and reassess every three years, and requiring the Office of Housing and Community Development to validate reductions using established models. 

Watch our testimony in support of AB 1244 in the Natural Resources Committee. 

Making it easier to expand climate-killing highways 

AB 697 (Wilson) clears the way for highway widening on State Route 37 between Solano, Napa, and Sonoma Counties by authorizing the taking (i.e., killing) of species protected under the California Endangered Species Act.

Transform opposes highway widening on principle because we believe California’s resources would be better spent on sustainable transportation options. It makes no sense to keep adding to a transportation system that brought us to the brink of climate collapse; we need to invest in the shift to proven, sustainable transportation. But widening SR 37 is a particularly bad project. It’s a band-aid rather than a fix for the real issue of too little affordable housing in Sonoma and Napa Counties, so workers need to commute from Solano County and beyond. And, this stretch of highway close to the San Francisco Bay is projected to be underwater within two decades, flooding the current construction and requiring a second, costlier project to raise the roadbed above the waterline. 

So we showed up to oppose this bill at the Water, Parks, and Wildlife Committee.

Both bills made it out of their committees. AB 697 passed Appropriations and next faces a vote of the full Assembly. AB 1244 is awaiting a vote in Appropriations. Transform will continue to follow these and the rest of the bills on our legislative agenda. Bringing Bay Area voices and concerns to Sacramento is a critical element of our theory of change.

Transform’s 2025 Budget Advocacy

Every year, advocacy groups like Transform work on two separate but related campaigns in Sacramento: legislation and the budget. For 2025, Transform has a packed legislative agenda, but that doesn’t mean we’re ignoring the budget process. This year, we have three big budget asks of the legislature: $2.9 billion for housing and homelessness assistance, $2 billion to support transit operations, and to restore $400 million taken from the Active Transportation Program (ATP) in last year’s budget.

Budget negotiations are less visible and harder to follow, but they’re no less critical to California’s future. Here’s what Transform is doing to advocate for equitable budget priorities to improve transportation, housing, and climate.

How does the state budget process work in California?

The California budget process starts at the beginning of the year and finishes by the end of June, the deadline for the governor and the legislature to come to an agreement and pass a budget for the next fiscal year. Along the way, there are several significant milestones and big hearings, plus many, many meetings to hammer out the budget details.

In January, the governor releases his budget, the opening salvo for budget negotiations. The legislature may release its own budget recommendations, and various caucuses may release statements on their budget priorities.

After months of negotiations and hearings, the governor releases another budget draft, called the May Revise, in — you guessed it — May. Then the governor and the legislature conduct a final round of negotiations to hammer out a deal before the June 30 deadline.

Throughout this process, Transform and our allies send letters like the ones below, testify at hearings, and attend meetings with legislators, advocating for our priorities. We’re not alone in this; lobbyists for various industries, labor unions, state agencies, and many nonprofits representing diverse interests all weigh in on how our state should allocate its resources. 

In 2025, the process is complicated by chaos in the new federal regime, making it difficult to rely on previously committed federal funding. It’s unclear what gaps legislators might need to fill due to unmet federal commitments.

Transform and our coalition partners have made three requests to the governor and the legislature to fund housing, public transit, and active transportation infrastructure. Each of them will make a significant difference in the lives of California residents but represent a small fraction of California’s $230 billion budget.

$2.9 billion for housing and homelessness programs

In our coalition letter, below, Transform and our allies have outlined precisely where we’d like to see $2.9 billion in housing money allocated. The funding will close gaps, facilitating the construction of affordable housing and helping unhoused Californians find long-term shelter. The letter calls for $1 billion in funding for Homeless Housing, Assistance and Prevention, an effective program that has moved 40,000 people out of homelessness in the past two years, but which will be unfunded without this money. The money would also keep alive the Multifamily Housing Program, which builds new and preserves existing affordable housing. Without new funds, this vital program won’t be able to make more grants. 

Read the letter. 

$2 billion for the bus

Transform has joined a coalition asking for $2 billion to shore up our state’s struggling transit systems. We can’t afford to lose the vital bus and train connections that millions of Californians rely on to get around. The legislature provided stopgap transit funding coming out of the pandemic. As transit providers work to develop long-term funding solutions, we’re asking the legislature to allocate $2 billion over the next two fiscal years to keep the buses rolling until those solutions come online.

Read the letter.

$400 million for the Active Transportation Program

Last year’s budget cuts stripped $400 million from the ATP. This left it with only enough funding to approve 13 projects to make biking and walking safer across the whole state. Transform is part of a coalition asking for those funds to be reinstated. That would allow the ATP to fund an additional 36 excellent, shovel-ready active transportation projects.

Read the letter.

Advocates Demand Housing, Transportation, Environmental Justice in Cap-and-Trade Reauthorization 

Transform is leading a coalition of over 50 advocacy groups in housing, transportation, climate, and equity to urge California’s legislature to improve the state’s landmark Cap-and-Trade Program, closing loopholes that subsidize our most polluting industries and reinvesting additional revenue in sustainable transportation and affordable housing programs that center frontline communities. 

What is Cap-and-Trade?

California’s Cap-and-Trade Program puts a limit on overall carbon emissions each year by charging large polluters based on their emissions. The allowed emissions limit, or cap, lowers over time and the price of carbon emissions, at least in theory, increases. 

This incentivizes polluters to reduce their emissions via a market trading system. The program generates $4 billion a year that is reinvested in programs that further reduce emissions, such as new affordable housing near transit and sustainable transportation options. 

With the program set to expire in 2030, a diverse movement of organizations spanning issues of housing, transportation, climate, and environmental justice are uniting against the interests of extractive carbon-spewing industries. The carbon lobby is strong and well-funded after decades of profiting from lax regulation and externalized harms, so the voices advocating for a cleaner, greener, more equitable Cap-and-Trade Program must be loud.

Current status of Cap-and-Trade

California’s Cap-and-Trade carbon market has provided funding for many worthy projects. For example, the Affordable Housing and Sustainable Communities (AHSC) Program, which provides grants for infill housing and sustainable transportation, is a smart way to reduce vehicle miles traveled by providing affordable housing close to transit and amenities. Cap-and-Trade also funds vital transit through the Transit and Intercity Rail Corridor Enhancement Program (TIRCP) and the Low Carbon Transit Operations Program (LCTOP), as well as California High-Speed Rail.

However, from the start, the carbon lobby has gotten loopholes in Cap-and-Trade. Over 50% of all pollution allowances are given free to utilities and carbon-intensive industries like oil, gas, and cement production. While these free allowances are intended to protect Californians from price hikes, they are effectively massive subsidies for polluting industries. In fact, a Pro Publica investigation showed that, in the initial years of the program, emissions from the oil and gas industry rose rather than declined. 

Astroturf “green” groups are already lobbying in Sacramento for a “clean” reauthorization that would continue billions of dollars of oil and gas subsidies via these free pollution allowances. 

Full funding for frontline communities

The lack of affordable housing and sustainable transportation options in California are major contributors to the climate crisis and increasing unaffordability, and significant investment is needed. At the same time, frontline communities have seen very few greenhouse gas emissions reductions or air quality improvements since the advent of Cap-and-Trade, and many of our top priorities, like Transformative Climate Communities and Equitable Building Decarbonization, remain underfunded. 

Rather than fighting over scraps of the revenue from Cap-and-Trade, Transform and our allies have come together around a set of recommendations rooted in shared solidarity across different funding areas. By removing free allowances and offsets, another subsidy that allows polluters to keep polluting, we can not only achieve additional reductions in pollution that damages climate and health, but we can also increase the Greenhouse Gas Reduction Fund, adding revenue to support existing and additional expenditures that prioritize frontline communities, affordable housing, and sustainable transportation. 

A better Cap-and-Trade Program

The reauthorization of the Cap-and-Trade Program is a critical opportunity to enhance its structure. Transform will continue to campaign for a more effective program that truly reduces carbon emissions, reduces the pollution burden on environmental justice communities, and advances California’s sustainable transportation and affordable housing goals.

Read the full letter.

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