California Governor Gavin Newsom released a revised proposal for the 2025-2026 state budget, containing plans to extend the state’s “Cap-and-Invest” program, requiring major emitters to purchase allowances for carbon emissions above a declining cap, through 2045. The Cap-and-Invest program, which was set to expire in 2030, is anticipated to result in a continuation of the California Climate Credit, resulting in approximately $60 billion available for utility bill credits to California residents over the duration of the extension. The proposed extension of the carbon pricing program comes despite growing pressure by the Trump administration and Republican state politicians targeting state initiatives charging companies for their greenhouse gas emissions. …Trump specifically called out California’s cap-and-trade system, in addition to new laws in New York and Vermont aimed at fining energy companies for their contributions to climate change. …Newsom said “California’s fundamental values don’t change just because the federal winds have shifted.”