FOR IMMEDIATE RELEASE
May 14, 2026
Contact: Michael Blenner, michael.blenner@sierraclub.org
Governor’s Final May Budget Revision Lacks New Investments in California’s Critical Climate Priorities
Sacramento, CA — Today, Governor Gavin Newsom released the 2026-2027 May Revision to the state budget proposal. As the final May Revision of this administration, the budget represents not just a fiscal update from Newsom, but his final statement of priorities for California’s climate future, environmental protections, and frontline communities. Newsom presented a balanced budget through July 2028. However, despite the improved economic outlook for the state, his budget revision lacks any new investments in clean transportation, building decarbonization, or other critical priorities that would help achieve California’s climate and equity goals and reduce air pollution.
Instead of using this final May Revision to scale up real climate solutions, the Newsom administration continues to steer public funding toward programs that either fall short of California’s goals or actively undermine environmental protections. One of the worst examples of this misalignment is the proposed $25 million one time General Fund allocation for the Healthy Rivers and Landscapes Program. This rebranded framework is known as the Voluntary Agreements, or VA’s, an unethical compliance pathway for participating water agencies in the Bay-Delta Water Quality Control Plan. With Newsom’s new proposal, state agencies will now avoid strong enforceable and science based water flow standards in the Bay-Delta region.
That same pattern shows up in the Newsom administration continuing to propose allocating money for general government operations from the special fund, the Greenhouse Gas Reduction Fund (GGRF), which is meant to fund critical climate and equity programs. Despite the overall lack of investments in climate programs, the budget revision does include some new funding for the outdoors and open spaces, like the acquisition of the Golden Gate Fields, which would create a new park in the East Bay Regional Park system, and the announcement of a new state program to increase state park access. These investments are important and should be protected, but do not make up for a budget that fails to deliver the climate action California needs.
Statement from Miguel Miguel, Sierra Club California Director: “Californians are once again being reminded that overreliance on fossil fuels comes at a cost. Global instability has driven gas prices up across California and the nation, exposing families to the volatility of oil markets they cannot control. Renewable energy would not only help address the climate crisis, but help shield Californians from these recurring price shocks. Newsom’s proposed budget revision fails to meet the moment and lacks significant new investments in renewable energy, electrification, or climate programs needed to move California towards a more affordable and resilient future.”
Statement from Asha Sharma, Sierra Club California Deputy Director: “Despite an improved fiscal forecast, Governor Newsom’s proposed May Revision of the state budget fails to deliver on the life-saving environmental protection and climate investments our state desperately needs. Severe wildfires, polluted air, and increased risk of drought throughout the state are clear evidence of the urgent need to increase investments in climate and equity programs, not hold them stagnant or fail to fund them at all. We urge state leaders to ensure that the wellbeing of Californians, the climate and the environment are prioritized in this year’s budget.”
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Sierra Club California is the legislative and regulatory arm of Sierra Club’s 13 local chapters in California, representing half a million members and supporters, with a mission to practice and promote the responsible use of the earth’s ecosystems and resources; to educate and enlist humanity to protect and restore the quality of the natural and human environment; and to use all lawful means to carry out these objectives. Among Sierra Club’s highest priorities is advocating for federal regulatory policies that address the impacts of climate change, including impacts to the financial system. Sierra Club also has an investment portfolio of approximately $62 million and represents millions of members and supporters, many of whom have significant investments of their own. The Sierra Club and its members seek more reliable and comparable climate-related disclosures.