Mayor Daniel Lurie’s proposed budget is raising serious concerns about whether San Francisco is actually committed to its climate goals. The plan would slash funding for the city’s Environment Department starting this summer, which could threaten some of the city’s most important environmental justice initiatives.

The cuts would eliminate general fund dollars for the Climate Equity Hub, a program that helps low-income households upgrade to energy-efficient appliances and make their homes healthier. Beyond that, the reduced funding could force layoffs of key department staff and weaken programs focused on electric vehicle charging infrastructure and the city’s plan to reach net-zero emissions by 2040.

About 200 protesters showed up at City Hall on Wednesday to voice their opposition, with speakers including supervisors, community advocates, and union leaders. The rallying cry was consistent: San Francisco claims to care about climate action and environmental justice, but the budget doesn’t back that up. “San Francisco talks the talk, but doesn’t walk the walk,” said Antonio Díaz, organizational director of PODER, an environmental justice organization.

The numbers tell the story. The Environment Department currently has a $41 million budget, but only about $600,000 comes from the city’s general fund. Compare that to 2022-2023, when general fund support was nearly $3 million. That’s an 80% reduction. According to Environment Department Director Tyrone Jue, those unrestricted dollars are essential for staffing and overhead that grants don’t cover.

The Climate Equity Hub is a concrete example of what’s at stake. The program received about $370,000 in general fund support last fiscal year, but is set to receive zero this year. The hub has been instrumental in helping residents upgrade buildings to run entirely on electricity, converting gas appliances to electric alternatives. This work matters especially now. Next year, the Bay Area Air Quality Management District will restrict the purchase of gas water heaters, and by 2029, gas furnaces will be restricted. While these regulations push the region toward cleaner energy, they could backfire for low-income tenants if landlords use renovations as an excuse to evict them. The Climate Equity Hub helps prevent that displacement by providing technical assistance and finding funding sources.

District 9 Supervisor Jackie Fielder called out the contradiction during the rally. “This is exactly what we need to be supporting, not cutting. We have been leaders in global climate policy. We cannot afford to backslide”. The department’s statement confirmed that eight positions are currently at risk, with impacts reaching climate accountability, building electrification, and clean transportation initiatives.

The mayor’s office response was vague, mentioning “difficult budget decisions” without addressing specific concerns about job losses or program impacts. But with the Board of Supervisors finalizing the budget in July, there’s still time to push back. Environmental justice advocates are making it clear that real climate action requires real funding.