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US public transit riders took more than 2 billion trips in the second quarter of this year. All those rides, not to mention the countless more trips by bike, e-bike and foot, represent a major carbon savings compared to traveling by car. Yet President Donald Trump’s administration has yanked funding for mass transit and other no-carbon forms of transit. 

Today’s newsletter looks at the cuts that have targeted climate-friendly means of getting around. Plus, we talk with a MacArthur genius and share an excerpt from Businessweek’s Rick Caruso profile.

Want full access to these and more stories? Please subscribe to Bloomberg News.

Delays ahead

By Leslie Kaufman

President Donald Trump’s administration has used the shutdown to withhold billions in funding for major mass transportation projects in New York and Chicago.

If revoking wind farm leases and firing climate scientists represents a blatant shift in US climate policy, the loss of federal funding to mass transit programs would be a blow to fragile systems that remain among the most effective ways for millions of Americans to get around each day with minimal greenhouse gas emissions.

“More transportation options are crucial for the planet,” says Kevin X. Shen, a mass transit analyst at the Union of Concerned Scientists.

Photographer: Michael Nagle/Bloomberg

There has long been a rural-urban divide around support for funding mass transit, with cities generally favoring public dollars to support buses, subways, bike lanes and other means of getting around without a car. Less dense areas have historically been more autocentric. Historically, the US has addressed this issue by funding both highways and mass transit, with a significantly larger percentage allocated to highways. 

The 2021 bipartisan infrastructure law passed under former President Joe Biden, for example, allocated roughly $674 billion to transportation programs over five years. Of that, about $379 billion was set aside for highways and around $116 billion for public transit.

But Trump and Transportation Secretary Sean Duffy have focused on ensuring federal support is even more lopsided in favor of gas-powered cars. That includes clawing back funding for alternatives.

In July, Duffy pulled $4 billion in funding for California’s high speed rail project. The Transportation Department also froze this spring over 3,000 discretionary grants and cooperative agreements given but not finalized by the Biden administration. Deputy Transportation Secretary Steven Bradbury said last month the majority of these grants would eventually be approved after being “adjusted” for size and scope.  

But our colleagues at CityLab recently chronicled at least a half-dozen grants for bike lanes and pedestrian thoroughfares worth tens of millions that were cancelled by DOT, with at least one deemed “hostile” to cars. 

A DOT spokesperson said they had only cancelled “a small percentage of grants that supported the Green New Deal scam, DEI, or other wasteful projects that ran counter to this administration’s priorities.”

And the threat to withhold $18 billion from New York to finish a tunnel that carries mass transit and a 2nd Avenue subway lines and $2 billion from Chicago for their metro was certainly not small.

Not only would the impacts of such cuts certainly affect people who rely on public transit to get to their jobs, including the roughly 30% of Americans who don’t have a driver's license. It would also make it harder to cut what is the biggest source of US greenhouse gas emissions.

Transportation accounts for around 28% of all US emissions, according to DOT. The agency also notes those emissions grew more than any other sector between 1990 and 2022. Mass transit and cycling are both readily available and cost-effective means of reducing transportation emissions. 

The Metropolitan Transportation Authority estimates its service alone mitigates 20 million metric tons of carbon per year. E-bikes have the potential to slash transportation emissions by 12%, according to a 2020 study that used Portland, Oregon, as a case study.

The administration has also reversed policies designed to accelerate electric vehicle adoption, eliminating incentives for prospective buyers. Taken together, these policies will reduce the number of low- and no-carbon options to get around. The effects will also likely extend beyond the climate.

“Transport is just pro-growth, pro-business and sets us up in the strongest way for the future,” says Leslie Richards, the former transportation secretary of Pennsylvania and head of the Philadelphia-area mass transit system.

Coming down the tracks

2032
The year California's high speed rail project is expected to begin operations. That's a year earlier than what the project's Inspector General had previously estimated.

Everyone likes biking

"At the local level, there really isn’t that divide."
Kevin Mills
Vice president of policy, Rails to Trails Conservancy
Republicans and Democrats alike are fans of biking and walking infrastructure, despite the schism playing out in national politics.

One question with a Genius

By Olivia Raimonde

On Wednesday, the John D. and Catherine T. MacArthur Foundation announced its so-called “genius grants” for 2025. The annual award honors individuals who “expand the boundaries of knowledge, artistry, and human understanding” and comes with a no-strings-attached prize of $800,000.

Two climate experts were among this year’s 22 winners: Ángel Adames-Corraliza, an atmospheric scientist at the University of Wisconsin–Madison who investigates the mechanisms underlying tropical weather patterns, and Kristina Douglass, an archaeologist at Columbia University’s Climate School who studies the history of climate adaptation in Madagascar.

We spoke with both researchers about their work. Below is one question with Douglass.

Photo courtesy of John D. and Catherine T. MacArthur Foundation

What can the archaeology of Madagascar teach us about climate adaptation?

Archaeology has a lot to teach us about climate change because we are effectively looking at this library of human experience. When we look at Madagascar, here is an island that has experienced a lot of climatic variability because of its geographical and geological position in history, and the communities who live on Madagascar have adapted over time to deal with this high degree of variability.

There is a lot of unpredictability in the climate of southwest Madagascar. So when we look at the communities that have lived there for many generations, they have developed strategies that revolve around a single idea, which is flexibility. You have to be able to develop a livelihood approach, a social-network approach and a mobility approach that is highly flexible.

Read the full interviews with Douglass and Adames-Corraliza.

Your weekend read

Billionaire developer Rick Caruso spent $107 million of his personal fortune on a run for LA mayor, casting himself as a centrist Democrat who had a businessman’s knack for problem-solving. He lost soundly and seemed to recede from view, a mogul without a public cause to champion.

But January’s fires in Los Angeles thrust him back into the spotlight. John Gittelsohn and Patrick Clark profiled Caruso for Businessweek as he weighs a run to be California’s governor next year. You can read an excerpt of their piece below.

Rick Caruso during the Bloomberg Screentime event on Thursday. Photographer: Kyle Grillot/Bloomberg

In early January, a wildfire started smoldering in a tinder-dry part of Southern California where it hadn’t rained in eight months. The Santa Ana winds kicked up, stirring a cyclone of flames that hurled embers the size of sparrows into the Pacific Palisades. The coastal enclave was home to Hollywood celebrities including Tom Hanks, Ben Affleck and Kate Hudson who, up until then, could be forgiven for thinking they’d landed in a particular slice of paradise: a walkable village in the land of freeways, nestled between the Pacific Ocean and the Santa Monica Mountains.

The blaze was unrelenting, engulfing multimillion-dollar homes as it skipped from yard to yard. By the time it was fully contained, two-thirds of the neighborhood had been razed. Between the Palisades fire and another blaze ripping through the Los Angeles suburb of Altadena, the January wildfires were the most destructive in LA history.

News cameras broadcasting scenes of the wreckage to the rest of the country lingered on one freakish visual: A quaint shopping center called Palisades Village remained perfectly intact, while almost everything around it had burned. Its buildings had been inspired by the old-money main streets of East Hampton and Nantucket, while the shops were a cross between California classics and bougie essentials: a burger joint and an old-timey movie theater coexisting with Saint Laurent and Erewhon. From afar, it seemed like a miracle. But the mall hadn’t been saved by providence. It was still standing because its owner, the real estate billionaire Rick Caruso, had hired private firefighters.

Caruso, until that point, was mostly just Southern California famous. He’d amassed a $5.8 billion fortune building open-air malls known for their relentlessly cheerful, Disneyfied aesthetic, with dancing fountains and sightseeing trolleys. He moonlighted in local politics, emerging as a civic fixer for a series of mayors who turned to him when they had a difficult or distasteful task they needed done. 

The fires thrust Caruso back into the limelight, where he appeared tanned, coiffed, tailored and angry as hell about the city’s inability to handle the disaster. He found a welcome audience for his outrage among those who considered California too regulated, too taxed, too poorly managed, too blue. 

He created a nonprofit called Steadfast LA to help rebuild what was destroyed in the fires. Steadfast LA, announced less than a month after the disaster, would sit “between the public and private sectors” to speed the rebuilding process. It would pull together a who’s who of prominent names in Caruso’s network, including venture capitalist Joe Lonsdale, Netflix co-Chief Executive Officer Ted Sarandos and executives from Gensler, JPMorgan Chase and McKinsey. It wasn’t lost on anyone that Steadfast would also give Caruso a platform to criticize political rivals or pitch himself to potential voters as the kind of guy who gets things done.

Read the full profile.

Your weekend listen

Greg Jackson, chief executive officer of Octopus Energy Ltd. Photographer: Chris Ratcliffe/Bloomberg

The UK used to be a shining example of how to act on climate change. It created one of the world’s first climate laws in 2008, which bound the government to reduce emissions on tight deadlines. That law used to have cross-party support, but that’s no longer the case with politicians trying to make climate a wedge issue. Greg Jackson, chief executive officer of the UK’s largest energy retailer, Octopus Energy, joins Akshat Rathi on the Zero podcast to discuss his plan to bring down bills and keep the public on the green side.

Listen now, and subscribe on AppleSpotify or YouTube to get new episodes of Zero every Thursday.

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