California Cuts E-Bike Funding to Subsidize E-Cars
John Cinatl
California Cuts Bike Funding to Subsidize CarsNewsom's administration joins Republicans in harming low-income Americans
Last week, officials at the California Air Resources Board quietly redirected $17 million from the state’s e-bike purchase incentive program to its electric vehicle (EV) subsidy program. There was no announcement, but a quiet cancellation of the only program that gave low-income Californians affordable, clean transportation without subsidizing the car or energy industries. It was certainly popular. In the program’s first rounds, 150,000 low-income residents applied for just 1,500 vouchers. It was CARB’s only initiative that advanced California’s climate goals while simultaneously saving low-income families thousands of dollars, improving their health and happiness, reducing traffic and congestion, improving road safety, and boosting local economies.
Why did they cancel it? Officially, CARB says this was the result of “legislative direction.” But the “legislature” has made no such direction. In fact, as Kendra Ramsey from CalBike told me, the decision likely stems from Governor Newsom’s push to backfill federal EV subsidies cut by Republicans. It’s Newsom trying to “stick it to Trump.” I wish there were a federal e-bike incentive program that the Republicans had canceled. We’d be safe. the Movement Newsletter will always be free, and reader-supported. Chip in if you can. CARB’s failure to announce this decision—and their spokesperson’s comment to KQED that funding for e-bikes might return in future years—tells me they’re not proud of this decision. I know some of the key decision makers at CARB. They understand that the climate crisis impacts marginalized communities the worst, and they care as much about social inequity as they do about climate change. I have confidence we can restore the incentive. For Californians struggling to make ends meet, the affordable mobility provided by an e-bike is transformative. An electric car is not. Look at the typical scenario expressed in the chart. Over ten years, a buyer of a typical electric car will be on the hook for $877/month in car expenses—financing, insurance, charging, and maintenance. The EV subsidy might shave that down to $760/month—still a crushing burden. And that’s not counting parking fees and tolls and repairs not covered by insurance. Compare that to $38/month for a high-quality electric cargo bike that can cover most daily trips.
The EV subsidy program isn’t designed to help poor people—it’s meant to boost EV sales. That has climate value, sure, but let’s stop pretending it’s about equity. If CARB truly wanted to support low-income Californians, they’d invest in bikes. With a fraction of the $1 billion they’ve spent on subsidizing the electric car industry, they could support programs that offer better environmental returns and improve people’s daily lives. E-bikes replace car trips under five miles—about a billion miles per year in my small county alone. They make people healthier. They make cities more livable. They save families money. Canceling California’s only meaningful e-bike program is a disgrace. If this was indeed meant as some kind of response to Trump’s cancellation of the EV tax credit, it’s absolutely terrible resistance. Everywhere else in the world, leaders are expanding their e-bike incentive programs. In the United States, Colorado, Minnesota, Massachusetts, and Connecticut—to name a few—have robust programs they are expanding. California’s 2026 legislative season starts now. Later this week, I’ll publish a Best Practices Guide for e-bike incentives—highlighting the world’s best programs and laying out a path to reverse this idiotic decision that exacerbates the harm Trump is inflicting on the nation’s most vulnerable families.
© 2025 Dave Snyder
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