Gavin Newsom Launches MyFirstEV Rebates to Offset Federal Cuts

Governor Gavin Newsom launched the MyFirstEV rebate program on August 7, 2026, providing instant discounts for California residents purchasing or leasing their first zero-emission vehicle. The initiative offers a $3,500 rebate for new electric vehicles priced under $50,000 and a $1,750 rebate for used models under $25,000. Vehicles from California-based companies, including Lucid and Rivian, are exempt from these price caps.

Administered by the California Air Resources Board, the program utilizes $135 million in state funds from Cap-and-Invest proceeds and smog-abatement fees, which 13 automakers have agreed to match. The state estimates the fund will cover 73,000 sales, though the first-come, first-served funding may be exhausted by the end of 2026. Initial participants include Hyundai, Lucid, and Tesla, with Ford, Rivian, Chevrolet, and Kia joining later in August.

Newsom framed the program as a direct response to the elimination of federal EV tax credits by President Donald Trump and Republicans in Congress. The rollout occurs amid ongoing legal tensions, as the federal government has blocked California's mandate to ban new gasoline-powered vehicle sales by 2035. While state officials describe the move as decisive action for clean air, critics argue the subsidies ignore urgent issues like homelessness and housing. Additionally, a July 2026 poll from the Public Policy Institute of California found that 66% of adults oppose the 2035 gas-powered car ban.