I know California gets a lot of flack for its high cost of living, its amazing food, its beautiful national parks, and its gorgeous coastal drives… But you gotta hand it to the state for continuing to push for electric vehicles even when the United States government has turned its back on the technology. No more Tesla infomercials on the White House lawn FTW!
While the U.S. government has axed its electric vehicle incentives (like the $75,00 federal tax credit), Governor Gavin Newsom has backed $200 million in funding to promote EVs. It’s all right here in the 2026-2027 GB Budget Summary if you’re feeling extremely bored. But I just want to warn you that the finer details for this EV program haven’t been laid out yet, so maybe don’t waste your time just yet. I know you were itching to click that link so good thing I stopped you.
California’s $200 million state funding for EVs remains unclear
What we currently know about California’s new EV initiative is that it will require manufacturers to match the state’s contribution, although we don’t know what that contribution will be. Either way, that mystery amount would be doubled for first-time buyers who get a used or new electric vehicle.
The incentive will be offered right at the point of sale, reducing the initial purchase cost for customers. The California Air Resources Board told InsideEVs: “By reducing upfront costs and maintaining affordability, the program will help ensure that ZEV adoption remains strong, fostering innovation, improving public health, and reinforcing California’s leadership in the transition to zero-emission transportation.”
However, it should be emphasized that this is for first-time EV buyers only. This is an attempt to intrigue new consumers into making the switch, like handing out candy from the back of a Cybertruck. Someone apparently told InsideEV that drivers who already own an EV barely go back to “dirty” gasoline vehicles, blech! So there is apparently no reason to convince these EV enthusiasts to buy another one. I guess it makes sense; it’s not like I’d give money to someone for attending a CrossFit class if they’ve already been going for years. Not trying to say EVs are a cult or anything.
Right now, it’s unclear how far the $200 million will get Gavin and gang. To go along with the incentive, however, California wants to cap vehicle prices. This would most definitely entice some car buyers to turn to a new electric vehicle, since the average cost of a new car continues to skyrocket. It likely won’t be as lucrative of an initiative as the $7,500, but getting the cash right when you purchase a price-capped new EV is most definitely better than nothing. It won’t work on me (I like my “dirty” cars), but I’m sure plenty of other Californians will take advantage of this.
“Governor Newsom’s smart and practical plan is a real win for American EV jobs, cleaner air, and American automotive manufacturing competitiveness as we face the new reality of China writing a blank check to totally dominate the world’s auto industry,” EV Jobs Alliance CEO Mike Murphy stated on Tuesday.
Right now, the $200 million fund is just a proposal, a dream. A lot more information will need to be solidified before it can be approved by the state’s legislature. Like, what’s the incentive? That’s a big one.
