For Immediate Release
Media Contact:
Tryn Brown
tbrown@buildingdecarb.org
(209) 402-9959
California Governor’s budget proposal prioritizes rebuilding after Los Angeles wildfires and highlights progress on equitable building decarbonization
Governor Newsom’s proposed state budget points toward needed state investments in wildfire recovery and resilient rebuilding, and celebrates implementation of the Equitable Building Decarbonization Program.
SACRAMENTO, Calif. (January 16, 2026) — On January 9, Governor Newsom announced a state budget proposal that underscores the need for dedicated funding for recovery and rebuilding to support communities impacted by wildfires, as well as greater investment in building decarbonization overall. While a funding amount has yet to be determined, including this fund in the 2026-27 state budget provides an opportunity to ensure that rebuilding efforts are affordable, safe, healthy, resilient, and aligned with California’s climate goals. The budget proposal also highlights implementation of the state’s new Equitable Building Decarbonization (EBD) Program to provide highly-efficient heat pumps, weatherization, and other home upgrades at no cost for low-income households.
“We at Resilient Palisades appreciate the Governor recognizing the need for a rebuilding fund and continuing to champion the Equitable Building Decarbonization Program,” said Sara Marti, Director of Communications at Resilient Palisades. “For wildfire-impacted communities like the Palisades, Malibu, and Altadena, rebuilding is happening now. Families need a clear and accessible whole-home pathway to rebuild all-electric, regardless of which community they live in or which utility serves them. Incentives must match the real cost of upgrading after loss or major damage, and homes that were not a total loss must not fall through the cracks. Without simple, upfront support at the moment of rebuild or repair, people are pushed back into systems that already failed them. Los Angeles rebuild must be a clear priority in this budget so communities can rebuild safer, healthier homes.”
One year ago, the Los Angeles wildfires burned more than 16,000 structures, displacing tens of thousands of Californians across the Altadena, Malibu, and Pacific Palisades areas. Ensuring that the state budget includes funding to support all-electric rebuilding in Los Angeles offers a clear pathway to extend the benefits of EBD and enable the affected households and communities to rebuild safe, healthy, more affordable and resilient homes. All-electric homes are faster and cheaper to build, costing $3,000 to $10,000 less to build than mixed-fuel homes in Los Angeles, and are also constructed to meet quality building standards that help make them more resilient to heat waves and wildfires. Well-designed incentive programs can financially encourage building professionals to explore all-electric pathways and offer critical support and guidance to homeowners who are navigating the new home construction process for the first time.
“As California faces increasingly destructive wildfires, rebuilding all-electric presents a crucial opportunity to safeguard our communities and bring ratepayer costs down for decades to come,” said Beckie Menten, California Director at the Building Decarbonization Coalition. “Our state is beginning implementation for the landmark Equitable Building Decarbonization Program, and we can bring that momentum to make meaningful investments to support communities affected by wildfires affordably rebuild homes and neighborhoods that are safer, healthier, more energy-efficient, and resilient. We’re encouraged by the Administration’s recognition of this priority and look forward to working together ahead of the May Revise.”
In a meaningful step to support its communities and climate goals, California has committed to backing building decarbonization by investing $433 million in the EBD Program to help cover the upfront costs of clean energy upgrades in low-income and frontline communities across the state. While this amount is a reduction from the $922 million originally allocated to the program—and arrives as federal tax credits that helped make clean energy upgrades more affordable have been scaled back—it also reinforces the importance of strategically strengthening state investments in buildings in the 2026–27 budget. This includes expanding funding for TECH Clean California’s incentive programs, which can help lower the upfront costs of new heat pump installations for Californians and fill gaps left by reduced federal tax credits.
As California continues to recover and rebuild from the Los Angeles wildfires, the Administration and policymakers can build on the existing momentum of the 2025 state building code and programs like EBD by making all-electric rebuilding a budget priority to help advance affordability, safety, health, and climate resilience for Californians. In May, the Governor will release his May Revise, which will include updates and potential funding adjustments to the January proposal.
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ABOUT THE BUILDING DECARBONIZATION COALITION
The Building Decarbonization Coalition (BDC) aligns critical stakeholders on a path to transform the nation’s buildings through clean energy, using policy, research, market development, and public engagement. The BDC and its members are charting the course to eliminate fossil fuels in buildings to improve people’s health, cut climate and air pollution, prioritize high-road jobs, and ensure that our communities are more resilient to the impacts of climate change. Learn more at www.buildingdecarb.org