Budget approval hinged on the trailer bills, which aim to streamline construction and boost affordability.
When California Gov. Gavin Newsom signed the state budget into law on June 27, he made it contingent on the Legislature passing housing and infrastructure bills aimed at streamlining construction and cutting red tape.
The governor said the $321 billion state budget for the new fiscal year, which began July 1, would not take effect if two trailer bills—AB 130 and SB 131—aimed at boosting housing production and lowering home costs didn’t become law.
Both trailer bills were amended ahead of the budget deadline and signed into law on June 30. SB 131 focuses broadly on infrastructure, while AB 130 is primarily concerned with infill housing in urban areas.
AB 130 passed 28–5 and SB 131 passed 33–1. Sen. Roger Niello, a Republican representing parts of the Sacramento metropolitan area, voted against both bills, saying he disagreed with a provision regarding mortgage lending that he views as unconstitutional.
“I could certainly support most of the rest of it, but because of that one provision, I couldn’t vote aye,” Niello told The Epoch Times on July 3.
The bills amend the 55-year-old California Environmental Quality Act, or CEQA, which requires state and local governments to assess the environmental impacts of proposed projects before approving them, a process that can delay construction and increase housing costs.
“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,” Newsom said in a statement on Monday.
Referring specifically to SB 131, Newsom said: “Today’s bill is a game changer, which will be felt for generations to come.”
The updates to the CEQA will also apply to infrastructure projects, including infill housing, high-speed rail facilities, utilities, broadband internet, and community facilities—such as public parks and trails, rural health clinics, and food banks—as well as wildfire prevention and farmworker housing.
The legislation also exempts local governments from CEQA review when rezoning neighborhoods to meet state-mandated housing goals.
