Last week, Governor Newsom released his May Revision for FY 25-26; the Legislature now has until June 15 to negotiate and pass a final budget bill for his approval. While the Governor’s May Revision proposal maintains the Proposition 4/Climate Bond funding, including critical food and agriculture investments, it fails to center California’s most vulnerable communities in the state’s budget priorities.
Some Prop 4/Climate Bond investments we hope to see in the final budget bill include:
- $8.5 million to ensure essential engagement of California’s small-scale and underserved farmers who are impacted by the implementation of SGMA (DWR)
- $200,000 for equipment sharing and farmer cooperative program at California Dept of Food & Agriculture (CDFA)
- $18.8 million for CDFA’s Urban Agriculture Program
- $200,000 for tribal food sovereignty at CDFA
“The Underrepresented Communities Technical Assistance Program at DWR ensures that small farmers, groundwater dependent ecosystems, and disadvantaged communities who rely on wells aren’t left behind as California implements SGMA. Continuing this program's funding will keep small farmers at the table—protecting local food, rural economies, and sustainable water use. We urge the Legislature to continue this critical support."
Problematic Proposals in the Governor’s May Revision
Despite the Prop 4 Climate Bond implementation, the Governor made several funding proposals last week that left family farmers, environmental justice communities, and environmental organizations disappointed. We are urging the legislature to reject these proposals made by the Governor:
- Reject Governor Newsom’s Proposal for Reauthorizing Cap-and-Trade: The Governor’s limited plan to reauthorize California’s cap-and-trade program without meaningful reform continues billions in polluter subsidies while family farmers face skyrocketing costs. Despite advocacy from sustainable agriculture groups seeking essential reforms —including calls to eliminate free allowances for oil and gas and increase funding for climate-smart farming, the proposal ignores these critical reforms. CAFF has joined over 40 environmental, environmental justice, housing, transit, agriculture, and public health organizations urging lawmakers not to approve a straight reauthorization of California’s cap and trade program, which currently protects polluters and leaves communities behind. Reforms to this program are vital to ensure greater investments in sustainable agriculture and to protect small farmers on the front lines of climate change.
- Reject the Governor’s Delta Conveyance Project that bypasses communities and environmental protections – The Governor’s May Revise includes plans to fast-track the Delta Conveyance Project through trailer bill language — a $20 billion infrastructure project to build a 45-mile, 36-foot-wide tunnel beneath the Sacramento-San Joaquin Delta. This approach dangerously circumvents standard environmental planning processes and meaningful community engagement. Of particular concern is the exclusion of Delta-region family farmers from decision-making about a project that could directly impact their livelihoods. Without proper safeguards and inclusive planning, we must oppose this shortsighted proposal that prioritizes water extraction over ecosystem health and rural community needs.
- Reject Healthcare Cuts Hitting Farm Communities – The May Revise also freezes Medi-Cal expansions, disproportionately impacting immigrant and undocumented Californians who form the backbone of our food system. This represents a dangerous retreat from the Governor’s previous commitments to universal healthcare access, leaving farmworkers and farming families vulnerable.
“The Governor’s proposal to reauthorize the Cap & Trade program without critical reforms is shortsighted. It leaves frontline communities – including family farmers already bearing the worst impacts of climate change – without the necessary resources to implement climate solutions or adapt to escalating disasters. We urge the legislature to seize this opportunity to fundamentally reform the program to best address California’s affordability and sustainability goals.”
