California Carbon Market Changes Threaten Clean Drinking Water Funding

California's transition to a new cap-and-invest system is shifting funding priorities away from disadvantaged communities. The Safe and Affordable Funding for Equity and Resilience program, which relies on carbon market revenues, now faces significant budget risks. Recent policy changes have deprioritized water safety in favor of other projects, including high-speed rail. With proposed overhauls to the carbon market potentially cutting revenues in half, thousands of residents and schools may lose access to emergency clean water supplies.