# California just made clean, electric vehicles more affordable

*Published:* 2026-07-21
*Author:* Katelyn Roedner Sutter

- California is investing roughly $600 million to make clean transportation more affordable, practical and accessible through instant EV rebates, charging infrastructure and programs that help more Californians drive electric.

- The new MyFirstEV program gives eligible first-time buyers up to $3,500 off a new EV or $1,750 off a used EV at the dealership, with 13 major automakers matching state funding to double the impact.

California just [took another major step](https://www.edf.org/media/breakthroughs-electric-vehicle-affordability-and-clean-power-california-budget-climate) toward cleaner air, healthier communities and more affordable transportation. Governor Newsom recently [signed a state budget](https://www.gov.ca.gov/2026/07/13/as-trump-cedes-global-clean-car-race-to-china-governor-newsom-fights-back-with-instant-zev-rebates-for-first-time-buyers/) that invests roughly $600 million in cleaning up local air pollution – especially from transportation. The package includes a first-of-its-kind instant rebate program for first-time electric vehicle buyers, continued investments in charging infrastructure and funding that will help keep California’s transition to pollution-free transportation moving forward.

At a time when federal vehicle climate protections have been rolled back and California’s clean air authority faces ongoing unlawful attacks, this budget shows that states can continue leading the way by partnering with automakers to deliver practical solutions that save families money, reduce pollution and strengthen the economy.

**What’s in the budget?**

The biggest win is [MyFirstEV](https://www.gov.ca.gov/2026/07/16/governor-newsom-secures-13-automakers-to-offer-instant-rebates-for-first-time-zev-buyers/), a new instant rebate program that makes buying an electric vehicle easier and more affordable. Eligible first-time buyers can receive $3,500 off a new electric vehicle or $1,750 off a used electric vehicle right at the dealership. Instead of waiting months for a tax credit, buyers receive the discount immediately when they purchase or lease an eligible vehicle.

The program also makes public dollars go further. Participating automakers will match the state’s investment dollar for dollar, effectively doubling available rebate funding. Thirteen major automakers have already committed to participating – including Ford, General Motors, Honda, Hyundai, Kia, Lucid, Mitsubishi, Nissan, Rivian, Subaru, Tesla, Toyota and Volvo – demonstrating broad support for helping more Californians drive electric. Earlier this year, EDF joined automakers, public health organizations and clean transportation advocates in [urging lawmakers](https://library.edf.org/AssetLink/ssegg331hxwty353pj3cw6pou654374a.pdf) to establish this innovative public-private partnership.

The budget also [continues investing in](https://www.latimes.com/business/story/2026-07-03/california-is-bringing-back-ev-rebates-this-is-how-to-get-one) charging infrastructure and advancing other clean transportation priorities that make owning an electric vehicle practical and convenient. Together, these actions help address two of the biggest barriers to EV adoption: affordability and access to reliable charging. While this budget marks significant progress, EDF will continue advocating for sustained investments in light-duty vehicles, heavy-duty trucks, charging infrastructure and programs that expand access to cleaner transportation for lower-income Californians.

**Why these investments matter**

Transportation is California’s [largest source](https://www.epa.gov/transportation-air-pollution-and-climate-change/carbon-pollution-transportation) of climate pollution and one of the biggest contributors to unhealthy air. Replacing gasoline-powered vehicles with electric vehicles reduces the tailpipe pollution that contributes to asthma, heart disease and other serious health problems, especially in communities located near ports, warehouses and major truck routes where exposure is highest.

These investments also help families save money. California EV owners can save [up to $1,500 every year](https://www.myeva.org/blog/ev-fact-electric-vehicles-cheaper-to-own-than-gas-cars) on fuel and maintenance compared to gasoline-powered vehicles. Instant rebates make those long-term savings available to more households by reducing the upfront cost of buying an EV. As more vehicles become electric and charging becomes smarter, reliance on the volatile cost of fossil fuels declines. Growing EV adoption can also improve grid efficiency and [help lower electricity system costs ](https://blogs.edf.org/energyexchange/2025/10/13/evs-can-lower-electricity-rates-for-everyone/)over time.

California’s clean transportation leadership is also creating economic opportunity. The state’s policies have already attracted [more than $10 billion](https://evjobs.bgafoundation.org/) in private investment while supporting [more than 250,000 jobs](https://www.caevjobs.org/) across manufacturing, construction, utilities and technology. Continued investment gives businesses the confidence to keep building, hiring and innovating in California.

**Looking ahead**

This new EV incentive program demonstrates what’s possible when elected leaders invest in practical solutions that lower costs, reduce pollution and improve people’s lives. Now it’s time to build on that momentum. EDF will continue advancing policies that make the electric grid more affordable, reliable and resilient, including fully funding the California Energy Commission’s [Demand Side Grid Support](https://www.edf.org/media/breakthroughs-electric-vehicle-affordability-and-clean-power-california-budget-climate) program that pays Californians to help stabilize the grid during periods of high demand while reducing costs and reliance on highly polluting fossil fuel peaker plants.