California EV Rebate Funding Could Be Cut By 50%

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Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

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, Automotive Editor - June 25, 2024
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In an attempt to fix California’s budget deficit, which is estimated by Cal Matters to hit $56 billion over the next two fiscal years, Governor Gavin Newsom has introduced a new budget plan that hopes to stabilize the state’s spending and budget. The new budget looks to reduce one-time spending by $19.1 billion and ongoing spending by $13.7 billion through 2025 to 2026. These spending cuts, and Governor Newsom’s push to have a “leaner, more efficient government” could reduce that state’s electric vehicle funding.

The Community Housing Development Corporation (CHDC) recently sent out a letter related to Juneteenth titled “Driving Clean Assistance (DCAP) At Risk of Defunding.” In the letter, the CHDC, which is an African American community-based organization, outlined how California’s clean vehicle incentive program is at risk of defunding if Governor Newsom approves the state legislature’s revised May budget. The organization claims that a proposed state budget revision “would decrease funding for DCAP by 49.5%” and goes on to chide California lawmakers for not having a “public process to inform this decision.”

Clearly, the CHDC is upset about the possibility of DCAP, which is aimed at making electric vehicles affordable for low-income consumers, losing crucial funds to help individuals who need it the most. Without the necessary funding, the DCAP will not be able to provide low-income households and individuals living in disadvantaged communities with the necessary funds to make the switch to a clean vehicle. It is interesting to see that California may cut funding for DCAP by as much as 50%, as the program only recently became available.

California EV Rebate Funding Could Be Cut By 50%

Under DCAP, the California Air Resources Board (CARB) will provide low-income consumers with up to $14,000 to purchase or lease a new or used clean vehicle. DCAP was introduced recently as CARB’s way of expanding access to Clean Cars 4 All (CC4A). California residents who have an income that’s at or below 300% of the Federal Poverty Level ($96,300), have completed the necessary application, and have not previously participated in any CARB light duty vehicle purchase incentive program can get up to $14,000 off when purchasing a new clean vehicle.

CARB is different from CC4A in that it provides low-income households living in disadvantaged communities with extra funds as long as they have a vehicle to scrap. In its current form, CC4A provides shoppers with a rebate of up to $14,000 when they trade in a gas-powered vehicle for an EV, plug-in hybrid, or fuel-cell electric vehicle. The amount of the rebate depends on the type of vehicle being purchased.

As the CHDC points out, California won’t meet its equity, climate, and EV goals if the state takes funding away from people who need it the most to make the switch to a clean vehicle. The organization claims that DCAP does more than just provide low-income households with up to $14,000 to purchase a clean vehicle, but also “provides down payment assistance support, credit repair counseling, referral to vetted lenders, scrap & replace services in areas of the state without access, and a pathway to clean vehicle ownership for those without an eligible vehicle to scrap.”

Pictured: 2024 Ford F-150 Lightning (Top), Community Housing Development Corporation Letter (Middle)

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, Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

Follow On: Twitter

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