California plans EV subsidies to offset potential federal tax credit repeal

California Gov. Gavin Newsom pledged to revive state-level subsidies for electric vehicle purchases if the incoming Trump administration removes the federal EV tax credit, which provides up to $7,500 per vehicle.

Ian Duncan and Patrick Svitek report for The Washington Post.


In short:

  • President-elect Trump is expected to seek repeal of the federal EV tax credit as part of a broader rollback of Biden-era climate policies.
  • California Gov. Gavin Newsom announced a plan to reinstate state-level EV rebates, potentially funded by cap-and-trade revenue, to maintain affordability.
  • Analysts warn repealing the credit could reduce new EV registrations by 27%, although long-term adoption is expected to rise due to technological advances and lower running costs.

Key quote:

“We’re not turning back on a clean transportation future — we’re going to make it more affordable for people to drive vehicles that don’t pollute.”

— Gavin Newsom, California governor

Why this matters:

Transportation generates the largest share of U.S. carbon emissions, and policies encouraging EV adoption are key to reducing climate impacts. Removing federal subsidies could slow progress on clean energy goals and disproportionately affect states leading in EV adoption, like California.

Related: California girds for a Trump comeback with climate defense plan

Satellite view of the Chesapeake Bay region
Credit: USGS/Unsplash

Could a ‘whole watershed’ approach save this Maryland river?

Despite more than four decades of cleanup efforts, the Chesapeake Bay is still plagued with ecological problems, such as massive algae blooms, oxygen-depleted waters and an oyster population that remains a fraction of its historic size.

Depiction of the electronic workings of a data center with digital pathways

The cloud has sound: the unrelenting and unseen cost of A.I. data centers

As tech giants rush to build infrastructure, some residents who live near data centers say a constant low-frequency vibration is ruining their health and homes.
Man standing against a landfill backdrop, carrying a sign reading "ACT NOW" with planet earth depicted as the "O"

Trump DOJ wants to sideline citizens in pollution fights

In a court filing backing Elon Musk's AI company, the Trump administration said the federal government can stop Americans from suing over air pollution.
Dairy cows lined up in a concentrated animal feeding operation.

New Mexico dairy CAFOs drives hundreds of millions in health costs, study finds

Air pollution from large, concentrated New Mexico dairy farms causes an estimated $217 million annually in health costs, with most of the toll coming from ammonia emissions that form dangerous particulate matter, according to a new study.  
A fire burning at night with a forest in the background

When forests burn, lakes suffer

Elevated fire risk is becoming the new norm for the Upper Midwest, and hot fires have dire consequences for the water quality of remote lakes.

The interior of a data center with rows of servers

The vote that stopped a data center

Concerns are growing about the high energy, water and land demands of artificial intelligence tech hubs, while benefits for local people remain unclear.

A coal drill hovering over piles of coal

Why coal will lead to more deaths in Colorado

Across the nation, one of the dirtiest sources of power gets a lifeline from the Trump administration and state officials.
From our Newsroom
Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

One facility has emitted cancer-causing chemicals into waterways at levels up to 520% higher than legal limits.

Regulators are underestimating health impacts from air pollution: Study

Regulators are underestimating health impacts from air pollution: Study

"The reality is, we are not exposed to one chemical at a time.”

Pennsylvania governor Josh Shapiro speaks with the state flag and American flag behind him.

Two years into his term, has Gov. Shapiro kept his promises to regulate Pennsylvania’s fracking industry?

A new report assesses the administration’s progress and makes new recommendations

silhouette of people holding hands by a lake at sunset

An open letter from EPA staff to the American public

“We cannot stand by and allow this to happen. We need to hold this administration accountable.”

wildfire retardants being sprayed by plane

New evidence links heavy metal pollution with wildfire retardants

“The chemical black box” that blankets wildfire-impacted areas is increasingly under scrutiny.

Stay informed: sign up for The Daily Climate newsletter
Top news on climate impacts, solutions, politics, drivers. Delivered to your inbox week days.