The Assembly Budget Subcommittee No. 4 on Climate Crisis, Resources, Energy, and Transportation convened on May 15, 2025, to discuss critical budgetary issues, with a significant focus on the cap and invest proposal. This proposal, which aims to regulate greenhouse gas emissions through a market-based approach, has sparked considerable debate among committee members.

During the meeting, concerns were raised about the appropriateness of including the cap and invest proposal in the state budget. One member highlighted that California is currently facing one of its most challenging budget situations in the last 17 years. The member expressed skepticism about the feasibility of integrating the reauthorization of the cap and trade program into the budget process, suggesting that it may complicate an already difficult decision-making landscape.

The discussion underscored the tension between environmental policy initiatives and fiscal responsibility, as committee members grapple with the implications of climate action amid budget constraints. The outcome of these discussions could significantly impact California's approach to climate change and resource management in the coming years.

As the subcommittee continues its deliberations, the future of the cap and invest program remains uncertain, with potential implications for both the state's environmental goals and its financial stability.