Newsom, a Democrat, proposed creating a new version of the state鈥檚 , which was phased out in 2023 after funding 594,000 cars and saving 456 million gallons of fuel, Newsom鈥檚 office said.
鈥淐onsumers continue to prove the skeptics wrong 鈥� zero-emission vehicles are here to stay," Newsom said in a statement. "We鈥檙e not turning back on a clean transportation future 鈥� we鈥檙e going to make it more affordable for people to drive vehicles that don鈥檛 pollute.鈥�
Newsom鈥檚 proposal is part of his plan to protect California's progressive policies ahead of Republican President-elect Donald Trump's second term. He called the state Legislature to convene in to help 鈥淭rump-proof鈥� state laws by giving the attorney general鈥檚 office more funding to fight federal challenges.
But a budget shortfall could complicate California鈥檚 resistance efforts. Early budget projections show the state could face a $2 billion deficit next year, according to a report released last week by the nonpartisan Legislative Analyst鈥檚 Office. That鈥檚 an improvement from the state faced last year, but the shortfall could still curtail the state鈥檚 ability to expand new programs and fight federal legal challenges. Legislative leaders in both chambers have said the state needs to stay prudent in anticipation of future budget deficits.
Karoline Leavitt, a spokeswoman for Trump's transition team, said the president-elect would deliver on his campaign promises, 鈥渋ncluding stopping attacks on gas-powered cars.鈥�
鈥淲hen he takes office, President Trump will support the auto industry, allowing space for both gas-powered cars AND electric vehicles,鈥� she said in a statement.
Money for the new rebate system could come from the state's Greenhouse Gas Reduction Fund, which is funded by polluters under the state鈥檚 cap-and-trade program, the governor's office said.
Officials didn鈥檛 say how much the program would cost or how the rebates would work.
California has surpassed 2 million zero-emission vehicles sold, according to Newsom's office. The state has passed policies in recent years to transition away from fossil fuel-powered , , and .
Trump previously vowed to end , which are worth up to $7,500 for new zero-emission vehicles. There鈥檚 also a $4,000 credit for used ones. But Trump later softened his stance as Tesla CEO Elon Musk became a supporter and adviser.
Newsom's proposed rebates could exclude Tesla and other automakers in an effort to promote more market competition and innovation, according to the governor's office. But that is subject to negotiation with the state Legislature.
Musk called Tesla's possible exclusion 鈥渋nsane鈥� in a post on X. About 42% of rebates went to people buying or leasing Tesla vehicles under the state's previous clean vehicle rebate program, according to data from the California Air Resources Board.
Trump criticized Newsom on social media after the governor called for a special session, calling out the high cost of living in California and the state鈥檚 homelessness crisis. Trump said Newsom was 鈥渟topping all of the GREAT things that can be done to 鈥楳ake California Great Again.鈥欌��
Newsom said on his podcast earlier this month that he reached out to Trump after the election. He said at a news conference last week that he still hadn鈥檛 heard back from the president-elect.
California's defunct Clean Vehicle Rebate Program offered rebates on electric cars as high as $2,500.
Sophie Austin is a corps member for the Associated Press/Report for America Statehouse News Initiative. is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on Twitter: @