The California Air Resources Board would oversee the program, offering rebates at the point of sale to lower upfront costs for buyers instead of reimbursing them later. The proposal exempts the program from the state’s usual rule-making requirements, allowing California to design and launch the rebates more quickly than typical for new programs. Newsom first unveiled the incentive proposal as part of his January budget plan but released few initial details. State officials cast the subsidy as a response to President Donald Trump’s dismantling of incentives and blocking of California’s clean-vehicle mandate. New passenger cars qualify only if priced at or below $55,000, while vans, SUVs and pickup trucks are capped at $80,000.

Source: The Guardian February 08, 2026 18:10 UTC