Gavin Newsom pushes $135 million EV rebate as Californians face cost crises

Governor Gavin Newsom announced a $3,500 MyFirstEV rebate aimed at first-time purchasers of electric vehicles under $50,000 new or $25,000 used, with the program projected to consume about $135 million of taxpayer money. Supporters present the incentive as a response to the federal rollback of EV tax credits, positioning the governor as a progressive defender of clean-energy policy. Opponents contend the subsidy benefits a limited segment of relatively well-off buyers, while many renters and lower-income families cannot cover the higher purchase price, insurance or home-charging costs.

A July 2026 poll by the Public Policy Institute of California indicated that roughly two-thirds of adults and likely voters reject the state's 2035 gasoline-car ban, a sentiment that has risen sharply since 2021 and now includes half of Democrats. Critics also cite previous state spending controversies, such as fraudulent pandemic unemployment payouts and legal-defense funds for undocumented immigrants, to argue the rebate reflects misplaced priorities. The debate highlights tension between climate-focused initiatives and the state's ongoing challenges with housing affordability, homelessness, wildfire threats and deteriorating infrastructure.