The money comes from California Climate Investments, which are funded through the state’s cap-and-invest system
California officials approved more than $865 million in funding for affordable housing, transportation projects and climate resilience efforts, with the money drawn from fees paid by large greenhouse gas emitters under the state’s cap-and-invest program.
The funding will support 39 affordable housing developments across 21 communities statewide, totaling thousands of new homes, along with transportation and infrastructure projects intended to reduce emissions and improve access to jobs and services. Los Angeles County is set to receive $185.6 million, largely to rebuild infrastructure damaged by wildfires earlier this year, according to state officials.
The money comes from California Climate Investments, which are funded through the state’s cap-and-invest system. The program requires companies that emit greenhouse gases above certain levels to purchase allowances, with proceeds directed toward projects aimed at reducing emissions and addressing climate impacts.
State officials said the investments prioritize communities disproportionately affected by pollution and climate-related disasters, including wildfire-prone regions in Southern California and agricultural areas in the Central Valley.
The awards were approved by the California Strategic Growth Council, which oversees distribution of the funds. With the latest round, the council said it has surpassed $5 billion in total investments since the program began, marking its largest single funding allocation to date.
According to the council, the funds will be used to support affordable housing and transportation projects near employment centers and schools, preserve agricultural land, and back community-led climate and public health initiatives in lower-income areas.
Gov. Gavin Newsom said in a statement that the funding reflects the state’s approach of tying pollution reduction efforts to housing and infrastructure development.
