Key facts
- California Governor Gavin Newsom signed a $352 billion spending plan.
- The budget avoids major cuts and delays healthcare reductions.
- Funding for childcare is increased, with nearly 23,000 new spaces funded.
- Nearly $1.7 billion is allocated for housing and homelessness programs.
- The budget includes $900 million for Homeless Housing, Assistance and Prevention grants.
- The budget sets the stage for a November ballot measure for $11.25 billion in affordable housing funding.
California Governor Gavin Newsom signed a $352 billion spending plan, his final budget before leaving office. The budget avoids major cuts, delays healthcare reductions, and boosts childcare, while also allocating nearly $1.7 billion toward housing and homelessness programs. Newsom highlighted the budget's balance, stating California will have a zero-dollar deficit for the next two years. Lawmakers are also advancing hundreds of housing reform bills targeting construction costs, permitting delays, and wildfire insurance. The budget includes $900 million for homelessness grants, $500 million for Low-Income Housing Tax Credits, and $200 million for the Multifamily Housing Program. Additionally, it sets the stage for a November ballot measure authorizing $11.25 billion for affordable housing construction, rental assistance, and homeownership programs. Last year's budget included significant reforms to the California Environmental Quality Act to speed up housing project reviews, though implementation has faced delays. This year's legislative focus has shifted to reducing construction costs, streamlining permitting, and addressing the home insurance market. Two bills aimed at reviving the condominium market, concerning defect liability and raising deposit caps, are advancing.