California is pushing ahead with electric vehicle incentives and stricter emissions rules despite federal rollbacks under President Trump. Governor Gavin Newsom is set to unveil a USD 200 million program to offset the loss of federal tax credits, while state regulators prepare legal challenges to defend the state’s authority.
The US state of California is moving quickly to strengthen vehicle emissions standards and expand electric vehicle (EV) incentives, even as the Trump administration dismantles federal environmental protections.
This week, state officials, including Lauren Sanchez, chair of the California Air Resources Board (CARB), are meeting with Detroit automakers in Detroit to discuss the next phase of greenhouse gas rules for cars and trucks.
Governor Gavin Newsom is expected to announce a USD 200 million EV incentive program next week, designed to fill the void left after Trump’s budget eliminated federal tax credits for new electric vehicles last year.
For decades, California has led the nation in stricter emissions standards, supported by a Clean Air Act waiver that allows the state to set tougher rules than the federal government.
Legal and regulatory battles
The Trump administration has rescinded California waivers for zero-emission vehicles, including the Advanced Clean Cars II program, which sought to phase out gasoline-powered cars by 2035. Waivers covering heavy-duty trucks and low-emission diesel engines were also revoked, slowing the adoption and production of electric and low-emission vehicles.
GM has estimated that these rollbacks could save the company up to USD 750 million, while California has vowed to challenge efforts to repeal the Environmental Protection Agency’s “endangerment finding,” which classifies greenhouse gas emissions as a threat to human health.
Prior to Trump’s inauguration in January 2025, CARB had strategically withdrawn some waiver requests, including rules to phase out older diesel locomotives and to mandate zero-emission trucks, thereby preserving flexibility to pursue alternative approaches.
Automakers engage cautiously
Automakers are responding cautiously. GM confirmed its participation in this week’s CARB meetings, citing a long history of collaboration and emphasising California’s importance as the world’s fourth-largest economy.
Ford and Stellantis have not commented on the discussions.
Lauren Sanchez noted that Trump’s policies on EVs and clean energy have ceded global market leadership to China, reinforcing the urgency for California to pursue its own electric and zero-emission vehicle initiatives.
