California Stalls on EV Subsidies as Trump Cuts Federal Rebate https://t.co/XpQ6AHvPI4
California's electric vehicle subsidies face delays following cuts to the federal rebate under the Trump administration. Key details and figures have yet to be released. $NDXP
The state’s previous $1.5 billion EV rebate program ended in 2023, and a revival now faces funding and political hurdles. https://t.co/nwavLpFQjc
President Donald Trump’s recently signed One Big Beautiful Bill Act will terminate the $7,500 federal tax credit for electric-vehicle purchases on 30 September, prompting a rush in nationwide EV sales ahead of the deadline. California Governor Gavin Newsom had pledged to revive a state subsidy that once offered up to $7,500 per vehicle after the federal incentive ended, but people familiar with the talks say no concrete proposal has reached legislative leaders. The previous program, which distributed $1.5 billion before expiring in 2023, helped make California the largest U.S. market for zero-emission cars. Officials in Sacramento are debating whether to finance a new rebate through the state’s cap-and-trade fund, which has collected roughly $33 billion since 2013 and is already earmarked for high-speed rail, wildfire mitigation and other climate projects. Lawmakers return on 18 August, leaving a narrow window to craft an incentive before the federal credit lapses. Automakers including Tesla, Rivian and Lucid have told investors they expect a third-quarter sales surge as buyers scramble to secure the expiring federal benefit. Industry groups warn that absent a swift state-level replacement, EV demand could dip sharply in the fourth quarter, undermining California’s emissions-reduction goals.
