State legislation signed this week in California seeks to promote affordable housing, by finding avenues to reduce timing and financial burdens arising from the state’s many environmental protections and approvals.
A statement from the Governor’s office frames the pro-housing outcomes sought by the broad legislation:
Governor Gavin Newsom today signed historic legislation as part of the 2025-2026 state budget, enacting new laws that deliver the most consequential housing and infrastructure reform in recent state history. These transformative measures, including Assembly Bill 130 (Committee on Budget) and SB 131 (Committee on Budget and Fiscal Review), bring to life the bold vision set forth in the Governor’s May Revision — advancing faster, more affordable housing and infrastructure as part of California’s Abundance Agenda.
Together, the two budget trailer bills include a comprehensive streamlining package that breaks down long-standing development barriers, modernizes CEQA review for critical housing and infrastructure, and creates new tools to speed up production, reduce costs, and improve accountability across the state.
“This isn’t just a budget. This is a budget that builds. It proves what’s possible when we govern with urgency, with clarity, and with a belief in abundance over scarcity.
In addition to the legislature, I thank the many housing, labor, and environmental leaders who heeded my call and came together around a common goal — to build more housing, faster and create strong affordable pathways for every Californian. Today’s bill is a game changer, which will be felt for generations to come.” -Governor Gavin Newsom
An article on Cal Matters reviews the bill, hailing that “One of the biggest obstacles to building new CA housing has now vanished” here:
With the passage of a state budget-related housing bill, the California Environmental Quality Act will be a non-issue for a decisive swath of urban residential development in California.
In practice, that means most new apartment buildings will no longer face the open threat of environmental litigation.
It also means most urban developers will no longer have to study, predict and mitigate the ways that new housing might affect local traffic, air pollution, flora and fauna, noise levels, groundwater quality and objects of historic or archeological significance.
The California State Association of Counties had urged these advances to modernize the State regulations:
CSAC President and Inyo County Supervisor Jeff Griffiths issued the following statement in support of the CEQA provisions contained in Assembly and Senate bills 130 and 131:
Counties strongly support the CEQA overhaul in the state budget package.
No longer will CEQA be leveraged to stall critical county wildfire, water and housing projects.
This legislation will make California more affordable for families by helping to alleviate our housing crisis and, in turn, reducing homelessness.
The California legislation, embedded as part of the state budget and accompanying policy legislation, includes multiple provisions regarding accessory dwelling units, coastal protections, and renters’ tax relief — all components that have fairly direct analogs in Maryland, as our own state’s policy debates regarding housing continue.
Read Governor Newsom’s full press release on the “Abundance” initiatives
Read Conduit Street coverage of housing issues, which should remain very active beyond the 2025 session.
