Editors at the Washington Examiner explain how California taxpayers will bear the cost of their governor’s upcoming battle with President-elect Trump.

Democratic governors and mayors seem to be competing to show Democratic primary voters who is most opposed to President-elect Donald Trump. Gov. Gavin Newsom (D-CA) is competing hard for the laurels in this race.

Days after the nonpartisan Legislative Analyst’s Office predicted California would run a $2 billion deficit next year and “does not have capacity for new commitments,” Newsom announced that if Trump keeps his promise to end federal tax credits for the purchase of electric vehicles, he will create a new state program in its place.

“We will intervene if the Trump administration eliminates the federal tax credit, doubling down on our commitment to clean air and green jobs in California,” Newsom said. “We’re not turning back on a clean transportation future. We’re going to make it more affordable for people to drive vehicles that don’t pollute.”

Under President Joe Biden’s Inflation Reduction Act, the federal government forks out $7,500 in tax credits for each EV built in the United States. The Congressional Budget Office estimates this will cost taxpayers $622 billion by the end of 2031. As Trump and Republican tax reform writers seek ways to offset the cost of extending the 2017 Tax Cut and Jobs Act permanently, the $7,500 giveaways will be on the chopping block.

Before 2023, California had its own tax rebate program for EVs, offering buyers $2,500 against the average $56,902 cost of a new electric car. The money came from the state’s Greenhouse Gas Reductions Fund, which receives revenue from California’s carbon emissions cap-and-trade program. However, the cap-and-trade system was so volatile that car buyers often had to wait months to get their rebates. The same fund is used to pay for housing, water infrastructure, mass transportation, and even the state’s high-speed rail project. Wherever Newsom takes money from to pay for an EV rebate program would mean less for housing, water, etc.