(Image Credit: IMAGN) California Gov. Gavin Newsom and First Partner Jennifer Newsom, listen to students from New College of Florida on Wednesday during Newsom's stop at the Betty J. Johnson North Sarasota Public Library in Sarasota on April 5, 2023.
Sacramento, California – In a bold move to address California’s persistent housing crisis and spur economic growth, Governor Gavin Newsom announced a sweeping legislative proposal as part of the May Budget Revision to remove long-standing regulatory barriers and accelerate housing development across the state. Authorities have designed the plan to streamline permitting, promote clever land use, and introduce innovative financing strategies that support infill and transit-oriented development, all while reinforcing the state’s commitment to affordability and sustainability.
“To meet California’s housing goals, we need certainty, accountability, and smarter land use — not the endless regulatory delays that have held us back for decades,” said Governor Newsom. “This proposal delivers lasting reforms to align our systems for long-term impact: more housing, stronger communities, and sustainable growth that reflects the bold, forward-thinking spirit of California.”
The Governor’s latest proposal includes targeted reforms that remove duplicative permitting requirements, accelerate timelines, and align Coastal Commission permit processes with those of other state agencies. These changes ensure that coastal communities are not excluded from urgently needed housing solutions. By leveling the regulatory playing field, the administration aims to increase accountability and deliver housing more efficiently across all regions.
Newsom’s plan also introduces an innovative financing tool that ties vehicle miles traveled (VMT) reductions to housing production, effectively linking the state’s climate goals with its housing agenda. The new plan aligns with the Governor’s July 2024 executive order promoting more innovative infill development to reduce emissions and improve quality of life.
In addition to executive action, the Governor calls on the Legislature to incorporate related measures into the budget, including Assembly Bill 609 by Assemblymember Buffy Wicks and Senate Bill 607 by Senator Scott Wiener. Both bills have been designed to streamline the California Environmental Quality Act (CEQA) to provide greater regulatory certainty and speed up project delivery.
The initiative builds on Newsom’s earlier commitment to plan for over 2.5 million homes during the current housing cycle, including at least one million affordable homes — more than double the previous planning target. Since taking office, Newsom has signed 42 housing-related CEQA reforms and directed unprecedented state support to local governments to help meet housing goals.
While these earlier efforts laid critical groundwork, the Governor acknowledged that a thicket of outdated and overlapping regulations continues to stall urgently needed projects. The new proposals aim to break through that bureaucracy, deliver faster results, and make housing more accessible for working families across California.
With a focus on climate-smart development, job creation, and equity, the May Revision signals a significant step toward reshaping California’s housing landscape — and removing the red tape that has long held it back.
