HomeMy WebLinkAbout2025-01-14; City Council Legislative Subcommittee; 02; Legislative and Advocacy UpdateMeeting Date: Jan. 14, 2025
To: Legislative Subcommittee
From: Jason Haber, Intergovernmental Affairs Director
Staff Contact: Jason Haber, Intergovernmental Affairs Director
jason.haber@carlsbadca.gov, 442-339-2958
Subject: Legislative and Advocacy Update
District: All
Recommended Action
Receive updates on federal and state legislative and budget activity and recent and ongoing
advocacy efforts; discuss and provide feedback to staff, including identifying high-priority bills,
advocacy positions, funding opportunities, and items for future City Council consideration.
Discussion
Staff and the city’s contract lobbyists – Federal: Carpi & Clay Government Relations / State:
California Public Policy Group – will present updates and overviews of federal and state legislative
activity (Exhibits 1 through 4) and intergovernmental matters being tracked on behalf of the city.
The Subcommittee is requested to provide feedback to help city staff and the city’s lobbying
consultants focus the city’s advocacy efforts on high-priority bills and to identify bills for future City
Council consideration.
Next Steps
Staff and the city’s contract lobbyists will monitor, evaluate, and engage the Legislative
Subcommittee in a discussion of legislative activity and proposed measures that may impact city
operations and policy priorities throughout the legislative session.
If the Legislative Subcommittee decides to refer any matters to the City Council, staff will work with
the City Manager to place an item on a future City Council agenda for consideration.
Exhibits
1.Carpi & Clay Government Relations – Federal Update
2.Carpi & Clay - 2024 Federal Year in Review
3.California Public Policy Group – State Update: Governor Newsom’s FY 2025-26 Budget Preview
LEGISLATIVE SUBCOMMITTEE
Jan. 14, 2025 Item #2 Page 1 of 14
1
December 31, 2024
City of Carlsbad
Federal Update
www.carpiclay.com
Exhibit 1
Congress Passes Another Short-Term Continuing Resolution
On December 20th, Congress passed another short-term Continuing Resolution (CR) that will
allow the federal government to remain open and funded until March 14, 2025. The House passed
the bill by a vote of 366-34, and the Senate passed the bill by a vote of 85-11. In addition to
extending government funding, the CR also included the following provisions:
$100 billion in disaster supplemental funding, including:
$31 billion in funding for economic assistance to agriculture producers
$29 billion to replenish the Federal Emergency Management Agency’s (FEMA)
Disaster Relief Fund and support response, recovery, and mitigation programs
$12 billion for the Department of Housing and Urban Development (HUD)
Community Development Block Grant Disaster Recovery program
$8.1 billion for the Federal Highway Administration (FHWA) Emergency Relief
Program
$10 billion for economic aid to farmers
Extends the 2018 Farm Bill through September 30th
Extends both the Temporary Assistance for Needy Families program and the National
Flood Insurance Program through March 14th
Extends flexibilities to allow for telehealth for Medicare through March 31st
$1.1 billion for the Community Health Center Fund
Extends increased Medicare payments to low-volume hospitals until March 31st
Extends the Medicare-dependent hospital program until March 31st
Congress Reauthorizes the Economic Development Administration
The WRDA 2024 bill included the Economic Development Reauthorization Act of 2024, which
reauthorized the Economic Development Administration (EDA) for the first time since 2004. The
EDA falls under the Department of Commerce and provides grants and technical assistance for
economic development and workforce training programs in economically disadvantaged
communities. Among other provisions, the legislation designates recreation as a priority for EDA
funding to improve access to public lands, develop recreation infrastructure, and assist
communities depending on the outdoor recreation economy.
Jan. 14, 2025 Item #2 Page 2 of 14
2 www.carpiclay.com
Congressional Leaders Set 2025 Schedule
House Majority Leader Steve Scalise (R-LA) and incoming Senate Majority Leader John Thune (R-
WY) released the Congressional schedule for 2025 for their respective chambers. A combined
version of the calendar is available HERE.
119th Congress House Committee Leaders
House Republicans and Democrats announced leaders for committees in the 119th Congress. The
chart below lists the Chair and Ranking Member for each committee in the House, with italics
indicating a new chair or ranking member. The Speaker of the House appoints leaders and
members of the Ethics, House Administration, and Rules Committees once the new Congress
begins on January 3rd.
House Committee Chair Ranking Member
Agriculture Glenn Thompson (R-PA) Angie Craig (D-MN)
Appropriations Tom Cole (R-OK) Rosa DeLauro (D-CT)
Armed Services Mike Rogers (R-AL) Adam Smith (D-WA)
Budget Jodey Arrington (R-TX) Brendan Boyle (D-PA)
Education & the Workforce Tim Walberg (R-MI) Bobby Scott (D-VA)
Ethics TBD TBD
Energy & Commerce Brett Guthrie (R-KY) Frank Pallone (D-NJ)
Financial Services French Hill (R-AR) Maxine Waters (D-CA)
Foreign Affairs Brian Mast (R-FL) Gregory Meeks (D-NY)
Homeland Security Mark Green (R-TN) Bennie Thompson (D-MS)
House Administration TBD TBD
Judiciary Jim Jordan (R-OH) Jamie Raskin (D-MD)
Natural Resources Bruce Westerman (R-AR) Jared Huffman (D-CA)
Oversight and Accountability James Comer (R-KY) Gerry Connolly (D-VA)
Permanent Select Intelligence Mike Turner (R-OH) Jim Himes (D-CT)
Rules TBD TBD
Science, Space, & Technology Brian Babin (R-TX) Zoe Lofgren (D-CA)
Small Business Roger Williams (R-TX) Nydia Velazquez (D-NY)
Transportation & Infrastructure Sam Graves (R-MO) Rick Larsen (D-WA)
Veterans’ Affairs Mike Bost (R-IL) Mark Takano (D-CA)
Ways & Means Jason Smith (R-MO) Richard Neal (D-MA)
119th Congress Senate Committee Leaders
Incoming Senate Majority Leader John Thune (R-SD) announced committee leaders in the 119th
Congress. The chart below lists the chair for each committee in the Senate. Democrats have not
yet announced Ranking Members for committees.
Jan. 14, 2025 Item #2 Page 3 of 14
3 www.carpiclay.com
Senate Committee 119th Congress Chair
Aging Rick Scott (R-FL)
Agriculture John Boozman (R-AR)
Appropriations Susan Collins (R-MN)
Armed Services Roger Wicker (R-MS)
Banking Tim Scott (R-SC)
Budget Lindsey Graham (R-SC)
Commerce, Science, and Transportation Ted Cruz (R-TX)
Energy and Natural Resources Mike Lee (R-UT)
Environment and Public Works Shelley Moore Capito (R-WV)
Ethics James Lankford (R-KY)
Finance Mike Crapo (R-ID)
Foreign Relations Jim Risch (ID)
Health, Education, Labor, and Pensions Bill Cassidy (R-LA)
Homeland Security and Governmental Affairs Rand Paul (R-KY)
Judiciary Chuck Grassley (R-IA)
Indian Affairs Lisa Murkowski (R-AK)
Intelligence Tom Cotton (R-AR)
Rules Mitch McConnell (R-KY)
Small Business Joni Ernst (R-IA)
Veterans Affairs Jerry Moran (R-KS)
President Biden Signs Grant Transparency Act into Law House
On December 11th, President Biden signed the Grant Transparency Act of 2023 (P.L. 118-140) into
law. The bipartisan legislation stipulates that each notice of funding opportunity (NOFO) must
include a description of any rating system, evaluation, and selection criteria a federal agency will
use to assess grant applications, a statement regarding the use of any weighted scoring methods,
and information on any other qualitative or quantitative method an agency uses to evaluate grant
applications.
Congress Passes Veterans Affairs Healthcare and Benefits
Improvement Act.
The House and Senate passed the bipartisan Senator Elizabeth Dole 21st Century Veterans
Healthcare and Benefits Improvement (Dole) Act (S. 141) to improve Department of Veterans
Affairs (VA) healthcare and services. The legislation includes federal resources for a competitive
grant program to support providing VA services through a state, tribal, or territorial government.
Aviation Safety Caucus Letter Urging FAA to Prioritize ATC
Modernization. The bipartisan House Aviation Safety Caucus sent a letter to the Federal
Aviation Administration (FAA) urging the enhancements to oversight and management of Air
Traffic Control (ATC) modernization projects, citing concerns over delays, cost overruns, and
Jan. 14, 2025 Item #2 Page 4 of 14
4 www.carpiclay.com
unsustainable systems identified in recent assessments. The letter calls for stricter review
processes, improved transparency, and collaboration with aviation safety professionals to ensure
timely and effective implementation.
FEDERAL FUNDING OPPORTUNITIES
NOAA Releases $100 Million Habitat Restoration and Coastal Resilience NOFO. The National
Oceanic and Atmospheric Administration (NOAA) released a $100 million NOFO through the
Transformational Habitat Restoration and Coastal Resilience Grants program. Funding will
support projects that restore marine, estuarine, coastal, and Great Lakes ecosystems through
activities like enhancing coastal wetlands and rebuilding coral reefs. Applications are due by April
16th.
GRANT AWARD ANNOUNCEMENTS
DOL Announces $99.3 Million for YouthBuild Program. The Department of Labor (DOL)
announced $99.3 million in grants to 71 organizations through the YouthBuild Program. Funding
will support pre-apprenticeships for individuals aged 16-24 who are neither enrolled in school nor
in the labor market for construction jobs and other high-demand industries. Projects selected will
also provide education and training for rehabilitating affordable housing in underserved
communities.
EPA Awards $1.275 Billion through Community Change Grants Program. The Environmental
Protection Agency (EPA) announced $1.275 billion in grants for 84 projects through the
Community Change Grants Program. The funding will support disadvantaged community efforts
to reduce and prevent air, water, and soil pollution, build resilient infrastructure, and provide
workforce development opportunities.
EPA Announces Clean Heavy-Duty Vehicle Grant Program Tentative Selections. EPA
announced over $735 million to 70 applications through its first-ever Clean Heavy-Duty Vehicles
Grant program. The funding will provide battery-electric box trucks, cargo trucks, emergency
vehicles, refuse/recycling haulers, school buses, shuttle buses, step vans, transit buses, utility
vehicles, other vocational vehicles, and several hydrogen fuel cell transit buses.
EPA Announces $7.7 Million through Brownfields Job Training Program. EPA announced $7.7
million in grants for 16 organizations through the Brownfields Job Training Program. The funding
will support recruitment, training, and job placement for community revitalization and cleanup at
brownfield sites. Programs funded in this round include certifications in lead and asbestos
abatement, mold remediation, environmental sampling and analysis, and environmental health
and safety training.
Jan. 14, 2025 Item #2 Page 5 of 14
5 www.carpiclay.com
FHWA Announces Wildlife Crossings Pilot Program Grant Awards. FHWA announced $125
million to 16 wildlife crossings projects. The grants will help fund projects that will reduce vehicle
collisions with wildlife while also improving habitat connectivity and support the survival of
threatened or endangered species. The funding also supports studies and projects that construct
wildlife crossings over and below busy roads, add fencing to direct animals to the crossings, and
monitor performance of crossing systems.
FHWA Announces Highway Construction Training Program Grant Awards. FHWA announced
$4.2 million to 16 programs to recruit, train, and place highway construction jobs. The new
programs will include training for heavy-duty equipment operators, scholarships for pre-
apprenticeship and apprenticeship programs, and programs to obtain a commercial driver’s
license.
HUD Awards $225 Million through PRICE Program. HUD announced $225 million in grants for
17 awardees through the Preservation and Reinvestment Initiative for Community Enhancement
(PRICE) program. The funding will support low- and moderate-incoming homeowners and
residents of manufactured housing communities (MHCs) by rehabilitating existing homes,
accessibility upgrades, infrastructure improvements, mitigation and resiliency strategies,
resident services, and support for transitioning existing MHCs to resident-managed communities.
Reclamation Announces $12.1 Million through WaterSMART Program. Reclamation
announced $12.1 million in grant awards for 43 projects in the WaterSMART Planning and Design
Grants program. The funding will support planning and designing water supply projects that
enhance groundwater discharge, design recycled water infrastructure, pipe water to reduce water
losses, backup infrastructure for water supply systems, and expand water reuse.
FEDERAL AGENCY REGULATORY ACTIONS
DOT Publishes Final Rule on Transportation for Individuals with Disabilities, Adoption of
Accessibility Standards for Pedestrian Facilities in the Public Right-of-Way. DOT published a
final rule that amends the Americans with Disabilities Act regulations to adopt, without
modification, the Architectural and Transportation Barriers Compliance Board's Accessibility
Guidelines for Pedestrian Facilities in the Public Right-of-Way (PROWAG) as DOT's regulatory
standards for new construction and alterations of transit stops in the public right-of-way. The rule
is effective on January 17th.
DOT Publishes Public Interest Waiver of the Application of Certain Domestic Preference
Requirements and Policies for Transit-Oriented Development Housing Projects. DOT is
proposing a waiver of the domestic preference requirements to transit-oriented development
(TOD) projects that receive credit assistance through BAB under the Transportation Infrastructure
Finance and Innovation Act (TIFIA) and the Railroad Rehabilitation and Improvement Refinancing
(RRIF) credit programs.
Jan. 14, 2025 Item #2 Page 6 of 14
6 www.carpiclay.com
DOT Publishes Interim Guidelines on Federal Flood Risk Management Standard. DOT
published interim guidelines on the Federal Flood Risk Management Standard (FFRMS) which
aims to enhance the resilience of communities and Federal assets against flooding caused by
extreme events and climate change. To support this effort, DOT has created the FFRMS Interim
Guidelines. These guidelines clarify the specific actions DOT is taking to integrate the FFRMS into
its policies, programs, and operations, ensuring consistent implementation across the
Department. Comments are due by February 18th.
EPA Finalizes Amendments to PFAS and PBT Review Process under TSCA. EPA published a
final rule amending the agency’s review process for new chemicals under the Toxic Substances
Control Act (TSCA) to ensure that new per- and polyfluoroalkyl substances (PFAS) and persistent,
bioaccumulative and toxic (PBT) chemicals undergo the full review process before
manufacturing. The rule eliminates exemptions for PFAS and PBTs with potential for human
exposure, aligns the chemical review process with laws requiring EPA to issue one of five safety
determinations for all newly submitted chemicals, and streamlines the review process. The rule
is effective on February 10th.
EPA Releases Final CWA Section 404 Rule. EPA published the final rule for the Clean Water Act
(CWA) Section 404 Tribal and State Assumption Program. The rule clarifies procedures and
requirements for states, territories, and authorized tribal governments to assume and administer
the Section 404 permitting program in the waters of the United States. EPA responded to feedback
from stakeholders during the development of the rule to identify and address barriers preventing
states, territories, and tribes from assuming control over the program. The rule is effective on
January 17th.
EPA Issues Waiver for CARB’s Advanced Clean Cars II Regulation. EPA issued a waiver of
preemption under Section 209(b) of the Clean Air Act (CAA) for the California Air Resource Board’s
(CARB) Advanced Clean Cars II regulation. CARB approved the regulation in 2022, which would
phase out the sale of most internal combustion engine vehicles in California by 2035. The
regulation stipulates that 35% of new cars sold in the state by 2026 be zero-emission vehicles
(ZEVs), scaling up until 2035 when all new vehicles sold in the state will be required to be ZEVs
except in certain limited circumstances. The rule would allow for 20% of ZEVs sold to be plug-in
hybrid vehicles and does not affect used vehicles already on the road.
EPA Issues Waiver for CARB’s Heavy-Duty Omnibus Low NOx Regulation. EPA granted CARB
a waiver of preemption under Sections 209(b) and 209(e) of the CAA for its heavy-duty vehicle
Omnibus Low NOx regulation to limit nitrogen oxide (NOx) emissions from internal combustion
engines. The regulation requires a 75% reduction below current standards in NOx emissions from
heavy-duty vehicles beginning with model year (MY) 2024 vehicles, scaling up to a 90% reduction
for MY 2027 vehicles.
FHWA, FTA, and FRA Publishes Efficient Environmental Reviews for Project Decision-making
and One Federal Decision Interim Guidance. FHWA, FTA, and the Federal Railroad
Jan. 14, 2025 Item #2 Page 7 of 14
7 www.carpiclay.com
Administration (FRA) published interim final guidance that explains the environmental review
process and best management practices for the surface transportation projects to which the
Section 139 environmental review process applies. This Interim Final Guidance supersedes and
replaces the SAFETEA-LU Environmental Review Process Final Guidance, jointly issued by FHWA
and FTA in 2006. This Interim Final Guidance reflects statutory amendments to the Section 139
environmental review process and includes information on the FRA and railroad projects. The
interim final guidance became effective on December 17th. Comments are due by February 18th.
FRA Publishes Freight Car Safety Standards Final Rule. FRA published a final rule that amends
the Freight Car Safety Standards (FCSS) to implement section 22425 of the Infrastructure
Investment and Jobs Act (Act). The Act places certain restrictions on newly built freight cars
placed into service in the United States including limiting content that originates from a country
of concern (COC) or is sourced from a state-owned enterprise (SOE) and prohibiting sensitive
technology that originates from a COC or is sourced from a SOE. The Act mandates that FRA issue
a regulation to monitor and enforce industry compliance with the Act's standards. The rule is
effective on January 21st.
FTA Publishes Buy America Waiver for Battery Electric Minibuses. FTA is proposing a general
non-availability waiver of limited duration for vehicles in this class that meet certain criteria. FTA
seeks public and industry comment on whether FTA should grant the waiver or a modified version
of the waiver. Comments are due by January 6th.
HUD Publishes OCAFs for 2025. HUD published a request for comment on its notice
establishing operating cost adjustment factors (OCAFs) for project-based assistance Section 8
contracts for 2025 with an effective date of February 11th. Comments are due by January 10th.
FEDERAL AGENCY ANNOUNCEMENTS AND PERSONNEL CHANGES
DOE Announces Transportation Modal Action Plans. The Department of Energy (DOE), in
collaboration with federal agencies and industry stakeholders, published transportation modal
action plans that outline strategies to enhance the freight and transportation sectors and present
opportunities to reduce emissions.
An Action Plan for Rail Energy and Emissions Innovation
Convenient Transportation: An Action Plan for Energy and Emissions Innovation
Efficient Transportation: An Action Plan for Energy and Emissions Innovation
United States Aviation Climate Action Plan
DOT Publishes Learning Agenda FY 2024 – 2026. DOT published the Learning Agenda: FY 2024
– 2026 which identifies priority evidence-building needs relevant to DOT programs, policies, and
regulations and creates an action plan to address them. The updated document adds 17 new
topic areas, each with a collection of priority questions that identify some of the Department’s
Jan. 14, 2025 Item #2 Page 8 of 14
8 www.carpiclay.com
most important emerging evidence-building needs in alignment with five of the previous DOT
strategic plan’s strategic goals. The new topic areas include distracted driving, railroad grade
crossing safety, aviation surface safety, supply chain disruption, transportation cost burden, safe
disposal and transportation of batteries, and EV adoption.
DOT Publishes National Blueprint for Transportation Decarbonization. DOT published the
USDOT Climate Strategies that Work Playbook, which is a resource to help guide cities, regions,
industry leaders, philanthropic strategists, and transportation professionals in implementing
effective strategies for reducing transportation sector greenhouse gas emissions.
DOT Publishes Report Detailing Progress in Rebuilding Bridges. DOT published a report
detailing the reconstruction of 18 of America's most economically significant bridges, surpassing
the initial goal of repairing ten major bridges under the Bipartisan Infrastructure Law. These
projects, each receiving grants of $100 million or more, aim to enhance safety, reduce congestion,
and strengthen supply chains, collectively impacting over 1.2 million vehicles daily and
supporting the nation's economic competitiveness.
EPA Administrator Announces Resignation. EPA Administrator Michael Regan announced he
will resign effective December 31st. Jane Nishida will serve as Acting EPA Administrator and Dan
Utech will serve as Acting Deputy Administrator until the end of the Biden Administration.
FAA Administrator to Step Down in January. FAA Administrator Mike Whitaker announced his
resignation effective January 20th, coinciding with the presidential transition. Whitaker, who
assumed the role in October 2023, was serving a five-year term set to expire in 2028. The FAA
Administrator position is a presidential appointment with a fixed five-year term.
FHWA Publishes NEVI Build Out Certification Guidance. FHWA published a memorandum on
Build-Out Certification outlines the criteria and procedures for states to certify the completion of
electric vehicle charging infrastructure along designated Alternative Fuel Corridors, a prerequisite
for utilizing National Electric Vehicle Infrastructure (NEVI) Formula Program funds beyond these
corridors. The document details the certification process, including necessary documentation
and evaluation metrics, to ensure a comprehensive and reliable EV charging network nationwide.
FHWA Publishes NEVI Formula Program Q&A. FHWA published an updated questions &
answers (Q&A) clarifying that the existing NEVI guidance has always allowed for flexibility in
charging standards—including use of other connectors, such as J3400—so long as there is a
Combined Charging System (CCS) connector. The updates do not represent a change to existing
NEVI minimum standards.
GAO Publishes Report on the Bridge Investment Program. The Government Accountability
Office (GAO) has released a report titled Bridge Investment Program: DOT Should Refine
Processes to Improve Consistency that evaluates the Bridge Investment Program, a grant
program aimed at addressing the nation's aging bridge infrastructure. The report highlights the
program's progress in supporting the repair and replacement of structurally deficient and
economically significant bridges, while also identifying areas for improvement in funding
Jan. 14, 2025 Item #2 Page 9 of 14
9 www.carpiclay.com
allocation, project selection, and performance metrics. Recommendations include enhancing
transparency in project prioritization and developing more robust data collection methods to
ensure accountability and maximize program impact. The report provides valuable insights for
policymakers and stakeholders working to improve the safety and resilience of U.S. bridges.
USDA ARS Publishes Food Loss and Waste Webpage. USDA’s Agricultural Research Service
(ARS) published a webpage titled Innovations for Reducing Food Loss and Waste. The website
highlights ARS research on solutions to reduce food loss and waste in homes, schools, farms, and
businesses, and efforts to convert food waste into products such as bioplastics, biochemicals,
and biofuels.
## ## ##
Jan. 14, 2025 Item #2 Page 10 of 14
1
January 7, 2025
City of Carlsbad
2024 Federal Year in Review
www.carpiclay.com
Exhibit 2
2024: A Year in Review
The second session of the 118th Congress was heavily focused on the annual appropriations bills. Congress returned to Washington, DC in January of this year having passed none of the twelve Fiscal Year 2024 (FY24) appropriations bills. Congress needed to pass two different Continuing Resolutions (CR) to keep the federal government open and funded. Finally, in March, Congress was able to pass two minibus appropriations bills
containing all twelve FY24 appropriations bills. Additionally, for the third year in a row, the FY24 appropriations bills contained community project requests (formerly known as earmarks). Specifically for the City, Representative Levin and Senators Feinstein and Padilla secured $850,000 for the Carlsbad Traffic Safety Improvement project.
As soon as Congress finished work on the FY24 appropriations bills, it was immediately time to begin work on FY25. In March, President Biden released his FY25 budget proposal to Congress. The annual release of the President’s budget proposal is what kicks off the appropriations process on Capitol Hill. Members of Congress also released their FY25 community project request forms. On the House side, Rep. Levin submitted
the City’s Carlsbad Village Railroad Double Track Trenching project to the House Appropriations Committee for consideration. His effort has resulted in $850,000 being included in the House Transportation, Housing, and Urban Development Appropriations bill for the project. Congress did not finish work on any of the FY25 appropriations bills before the end of the year. As such, Congress had to pass another short-term Continuing
Resolution (CR) that will allow the federal government to remain open and funded until March 14th. The City’s community project request is still pending upon completion of these bills. Outside of the appropriations bills, Congress continued to work on several bills that could
impact City services. Over the course of the past year, the City worked to support the
“Aviation Noise and Emissions Mitigation Act” (H.R. 1048) and the “Housing Unhoused
Disabled Veterans Act” (H.R. 8340). The City also submitted a grant application to the Department of Transportation for the Safe Streets for All Program. 2025: A Look Ahead
On January 3rd, the 119th Congress was officially sworn in with the GOP retaining its very slim House majority (219-215) and retaking the Senate majority (53-47). The City has a
new member of its Congressional delegation with the election of Senator Adam Schiff (he
takes over the seat held by Dianne Feinstein and Laphonza Butler). Senator Schiff’s
Jan. 14, 2025 Item #2 Page 11 of 14
2 www.carpiclay.com
committee assignments include the Senate Environment and Public Works Committee, which has jurisdiction over several critical projects at both the Department of Transportation and the Environmental Protection Agency. Schiff’s other committee
assignments are the Agriculture, Judiciary and Small Business committees.
President-elect Donald Trump will be sworn into office at 12:01 pm on January 20th. One of the first items on the new Administration’s to-do list will be to fill more than 4,000 political appointee positions across the federal agencies. The President-elect has
announced nominees for his entire cabinet, which include former Congressman Sean
Duffy (WI) to serve as the Secretary of the Department of Transportation, former Congressman Lee Zeldin (NY) to serve as the Administrator at the Environmental Protection Agency, and former Congressman Scott Turner to serve as Secretary of the Department of Housing and Urban Development. All cabinet positions require Senate
confirmation.
On the legislative front, Congress has until March 14th to finalize the FY24 funding bills. The GOP majority is also expected to use expedited procedures to advance a series of Trump priorities, including immigration measures and extension of the 2017 tax cuts.
Carpi & Clay Activities on behalf of the City of Carlsbad
Over the past year, Laura Morgan-Kessler and David Wetmore have been working on the following issues on behalf of the City:
Worked with City staff to draft and submit Fiscal Year 2025 community project requests to the City’s congressional delegation. As a result of these efforts, Rep.
Mike Levin included $850,000 for the City’s Carlsbad Village Railroad Double
Track project.
Kept City staff updated on the status with the annual appropriations process and federal funding.
Planned and executed the City’s federal advocacy trip to Washington, D.C. in May 2024. During this trip, the City met with the City’s Congressional delegation, Members of the House Quiet Skies Caucus, the Federal Railroad Administration, and the Department of Housing and Urban Development.
Drafted letters of support for the City to send on the following bills:
o Aviation Noise and Emissions Mitigation Act” (H.R. 1048) o Housing Unhoused Disabled Veterans Act” (H.R. 8340)
Provided the City with weekly transportation memos as well as monthly federal update memos.
Maintain strong relationships with the City’s Congressional delegation and staff. Additionally, kept the City updated on changes to staff within the City’s
Congressional delegation.
Jan. 14, 2025 Item #2 Page 12 of 14
3 www.carpiclay.com
Provided a memo to the City regarding the potential impacts to the City of a federal government shutdown.
Supported the City’s Department of Transportation Safe Streets for All grant application.
Shared the City’s FY24 Community Development Block Grant allocation of
$579,728.
Provided real-time grant funding opportunities to the City for federal programs of interest to the City.
Participated on monthly conference calls with City staff and presented monthly federal updates to the City’s Legislative Subcommittee meetings.
Provided the City with post-election memo outlining the results of the November election and the impacts to the City. ## ## ##
Jan. 14, 2025 Item #2 Page 13 of 14
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM 1
January 7, 2025
To: Jason Haber, Intergovernmental Affairs Director
Cindie McMahon, City Attorney
City of Carlsbad
From: Sharon Gonsalves
Managing Director
California Public Policy Group
RE: CPPG Overview of Governor Newsom’s “Budget Preview” for Fiscal Year 2025-26
OVERVIEW
Over this past weekend, Governor Gavin Newsom announced that he would provide a “preview” of the
state budget on January 6, while the full state budget would be presented by the Department of Finance
in a press conference on January 10. A divergence from previous years during which he presented the
full budget himself and took questions from the press, this year the Governor spoke on the budget
during a stop in Stanislaus County, the sixth such stop in his “California Jobs First” tour.
Governor Newsom gave a budget presentation that lasted around 30 minutes and highlighted key
elements of the 2025-26 budget, emphasizing the state’s financial resilience, regional investments, and
priorities in education, workforce development, and public safety. The Governor mentioned overall
themes of accountability, transparency, and maintaining fiscal discipline in the face of uncertainty.
Topline Budget Numbers
The topline numbers that the Governor released yesterday include the following:
•Balanced Budget: The proposed budget will contain a total of $322.2 billion in spending, with
$228.9 billion allocated to the General Fund. No deficits are projected.
•Reserves: Total reserves totaled $16.9 billion, including the following:
o $10.9 billion in the Rainy Day Fund.
o $1.5 billion in the Public School Rainy Day Fund.
o $4.5 billion in the Special Fund for Economic Uncertainty.
▪This includes an additional discretionary reserve of $1 billion (which the
Governor noted may increase in May), exceeding last year’s reserve level.
Governor Newsom noted, as he usually does during his budget releases, that the state’s revenue
structure relies heavily on top earners and capital gains taxes, making it subject to volatility. Despite
past revenue peaks and troughs, projections now indicate a more stable growth pattern. Additionally,
state revenue is up $16.5 billion from the previous budget cycle.
The full January budget proposal will be released by the Department of Finance on January 10 to
adhere to the constitutional deadline. CPPG will provide you with a memo on that release next week.
The press release for the budget preview can be found HERE.
Exhibit 3
Jan. 14, 2025 Item #2 Page 14 of 14
~CPPG
CALIFORNIA PUBLIC POLICY GROUP
CALIFORNIA PUBLIC POLICY GROUP •PUBLICPOLICYGROUP.COM
City of Carlsbad
City Council
January 14, 2025
Sharon Gonsalves, Managing Director, California Public Policy Group
CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM
-PPG
CALIFORNIA PUBLIC POLICY GROUP
CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM
Legislative and Budget Update
•345 bills introduced so far, roughly 1/3 are “spot” bills
•Around 2,000 bills total will be introduced by the February deadline
•2025-26 budget
•$363 million surplus
•$322.27 billion in total spending, with $228.9 billion for the General Fund
•9.2% increase in total state spending compared with FY 24-25
•Total reserves of $16.9 billion
~CPPG
CALIFORNIA PUBLIC POLICY GROUP
CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM
2025 Committee Chairs
•Juan Carrillo (D-Palmdale) remains the Assembly Local Gov chair
•María Elena Durazo (D-Los Angeles) remains the Senate Local Gov chair
•Matt Haney (D-San Francisco) is the new Assembly Housing chair
•Aisha Wahab (D-Oakland) is the new Senate Housing chair
•Nick Schultz (D-Burbank) is the new Assembly Public Safety chair
•Jesse Arreguin (D-Berkeley) is the new Senate Public Safety chair ~CPPG
CALIFORNIA PUBLIC POLICY GROUP
CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM
2025-26 Legislative Themes
•Housing elements and affordable housing
•Cost of living
•Healthcare
•Climate resiliency
~CPPG
CALIFORNIA PUBLIC POLICY GROUP
CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM
2025 Legislative Calendar
•January 10—Governor’s budget proposal
•January 24—Last day to submit bill requests to the Office of Legislative Counsel
•February 21—Bill introduction deadline
•April 11-18—Legislative spring recess
•Mid-May—Governor’s May budget revise
•June 6—House of origin deadline
•June 15—Legislature must pass FY 25-26 Budget
•June 30—Governor must sign FY 25-26 Budget
•September 12—Last day for the Legislature to pass bills
•October 12—Last day for the Governor to sign or veto bills
~CPPG
CALIFORNIA PUBLIC POLICY GROUP
CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM
Questions/Discussion
Thank You!
CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM
-PPG
CALIFORNIA PUBLIC POLICY GROUP