Last week, New York approved its 2025 budget, which includes $1 billion to invest in clean energy, energy efficiency and other programs that will reduce pollution and save New Yorkers money. Unfortunately, the benefits of these investments are overshadowed by the delayed launch of New York’s cap-and-invest program, which would provide billions more in savings to New Yorkers every year.
A recent report finds that, by stalling this program, Governor Hochul is keeping money out of New Yorkers’ pockets, slowing the transition to clean energy and preventing much-needed community investments. This decision is not just a bureaucratic setback, it’s a choice to withhold critical investments — between $61 and $126 billion over the first 11 years of the program — that will deliver cleaner air and energy savings to New Yorkers.
Key findings: What New Yorkers are missing out on
The report makes it clear: putting a price on pollution through cap-and-invest will generate revenue that can be directly reinvested into New York communities. Delayed implementation of cap-and-invest means New Yorkers are missing out on:
- Direct rebates for 83% of New York households: The program would provide direct financial relief to the vast majority of New York families, with 46% fully insulated from any increased energy costs.
- Major energy savings for nearly half of the state: By 2035, cap-and-invest could help 46% of New York households upgrade to clean heat pumps — delivering up to $524 million in annual energy savings. The average household could save up to $1,022 each year.
- $30 million investment for communities disproportionately impacted by climate change: The program would provide $30 million in grants to invest in community-directed projects, such as green affordable housing, rooftop solar, electric buses and bike lanes, in New York communities most impacted by climate change.
- Lower costs for the long term: The report finds that, with a higher price on climate pollution, cap-and-invest could help twice as many New Yorkers adopt money-saving clean energy technologies, while ensuring that most low-and-moderate income households are equally well off, if not better off, in terms of energy costs. Another report, also released this year by Resources for the Future in partnership with the NYC Environmental Justice Alliance, corroborates these findings.
Cap-and-invest is essential for New York’s climate progress
Cap-and-invest was recommended by the Climate Action Council as a cost-effective, comprehensive strategy to meet the pollution reduction targets mandated by New York’s landmark 2019 climate law. State law requires the Department of Environmental Conservation to adopt regulations to ensure these targets are met, yet the deadline for finalization passed more than a year ago. Further delays make it more challenging to meet these commitments and postpone pollution reductions that would deliver immediate benefits to communities.
New Yorkers want climate action
Governor Hochul’s decision to delay cap-and-invest contradicts what communities across the state are demanding. Hundreds of organizations, including public health, business, environmental justice and community organizations are calling for swift implementation of the program so that it can start delivering benefits for New Yorkers.
New York Renews, a 370-member statewide coalition, has launched the Fund Climate Campaign and called for the immediate release of cap-and-invest regulations. New Yorkers for Clean Air, a coalition of more than forty organizations, is also urging Governor Hochul to release the anticipated program rules, emphasizing that advancing the cap-and-invest program will protect clean air, invest in infrastructure, lower electric bills and hold corporations accountable.
These collective efforts reflect a growing demand from diverse stakeholders across the state to expedite the implementation of the cap-and-invest program. And New Yorkers aren’t alone in wanting strong climate policies that deliver huge community investments. Voters in Washington state resoundingly defeated a ballot initiative in November that sought to repeal their state’s cap-and-invest program, rejecting the initiative and defending the program by a whopping 24-point margin. Over 500 organizations, including Tribes, labor unions, and businesses, came together to defend the program and the transformative investments it enables. The result of the ballot initiative showed that ambitious climate action is not only possible — it’s popular. The Washington program, which has been in place for two years, has already raised $2.5 billion in revenue for community resilience, creating new jobs and funding the clean energy transition.
New York has the chance to build on this success — and Governor Hochul has the chance to deliver savings for families, good-paying jobs, cleaner air and improved public health for all New Yorkers. At a time when the federal government is moving in the wrong direction, states like New York must step up to fill the void.
Every day of delay means more pollution, higher costs, and fewer benefits for New Yorkers. It’s time to move forward and put cap-and-invest to work for the people of New York.