California Pushes to Protect Billions in Federal Infrastructure and Clean Energy Funding

In a significant move to safeguard California’s infrastructure and clean energy future, the state Senate has advanced Senate Joint Resolution 6—a partisan measure calling on President Donald J. Trump and Congress to uphold funding commitments made under three cornerstone federal laws: the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act of 2022.

The resolution, introduced by Democratic Senators Dave Cortese, Laura Richardson, and Henry Stern, passed through committee with a 7-2 vote on June 23 and now heads to a third reading. It reflects growing concern among state leaders about the potential rollback of federal investments that have already catalyzed billions of dollars in California-based infrastructure, technology, and clean energy initiatives.

Funding at Risk: A Multi-Billion-Dollar Ecosystem

Since the enactment of the Bipartisan Infrastructure Law in 2021, California has been awarded $63 billion in funding—transforming its transportation networks, water systems, high-speed rail, internet infrastructure, and climate resilience strategies. That includes:

• $3.1 billion in federal grants for California’s high-speed rail system between Merced and Bakersfield.
• $1.2 billion for ARCHES (Alliance for Renewable Clean Hydrogen Energy Systems), a clean hydrogen hub.
• $1.8 billion to expand high-speed broadband to underserved communities.

Layered atop these infrastructure wins are semiconductor investments and research advancements driven by the CHIPS and Science Act, and sweeping climate and energy allocations from the Inflation Reduction Act. The latter alone has sparked $26 billion in clean energy and transport investments and 9,600 new jobs statewide, including grants for seven major ports and wildfire resilience funding.

Political Headwinds Threaten Momentum

The resolution comes in response to a wave of executive actions and federal policy guidance that critics argue undermine prior grant agreements and jeopardize awarded but unallocated funds. Among the most contentious developments:

• A March 2025 U.S. Department of Transportation memo questioned the binding nature of fully executed grant agreements—injecting uncertainty into dozens of California transportation projects.
• President Trump’s address to Congress in March included calls to dismantle the CHIPS Act, labeling it “a horrible, horrible thing.”
• Executive orders from the current administration have paused funding disbursements from both the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.

The impact, according to California lawmakers, is already visible. An estimated 42,000 announced jobs—including 1,311 in California—and more than $57 billion in clean energy investments nationwide have been stalled or canceled as a result of recent policy reversals.

Economic and Environmental Fallout

Projections shared in the resolution underscore the long-term costs of reversing these programs. In California alone:

• GDP could fall by $29.67 billion by 2030 if Inflation Reduction Act provisions are repealed.
• Carbon emissions may rise by up to 12 million metric tons by 2035—the equivalent of three coal-fired power plants.
• Household energy costs are expected to rise by nearly $180 annually by 2035, costing Californians more than $6.4 billion in cumulative energy expenses.

With climate-related threats like wildfires escalating, lawmakers argue these investments are not only financially necessary but critical to public safety and environmental stability.

A Broader Business and Infrastructure Concern

From broadband deployment to semiconductor research and resilient infrastructure, the resolution highlights the interconnectedness of federal support with California’s broader economic development strategies. It also sends a warning to businesses and local governments nationwide: policy instability in Washington could erode the financial predictability required to undertake long-term, large-scale infrastructure projects.

As California awaits further federal action, its resolution serves as both a political statement and a business imperative—urging Congress to shield essential funding from partisan dismantling and recommit to infrastructure as a non-negotiable pillar of national progress.