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Home My WebLink About2025-11-18; City Council Legislative Subcommittee; 02; Legislative and Advocacy UpdateMeeting Date: Nov. 18, 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 and budget activity and the priority legislation and intergovernmental matters being tracked on behalf of the city (Exhibits 1 and 2). 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 Monthly Update, October 2025 2.California Public Policy Group – State Monthly Update, October 2025 LEGISLATIVE SUBCOMMITTEE Nov. 18, 2025 Item #2 Page 1 of 11 1 October 31, 2025 City of Carlsbad Federal Update www.carpiclay.com Exhibit 1 Fiscal Year 2026 Appropriations Update On October 1, federal appropriations lapsed after Congress failed to reach an agreement on Fiscal Year (FY) 2026 legislation. The federal government is now in the midst of the longest full shutdown in U.S. history. The House of Representatives has been in recess since September 19th. Over in the Senate, Senate Republican leadership has continued to have the Senate vote to attempt to pass the House-passed continuing resolution (H.R. 5371), which would fund the government through November 21, but each effort has failed to secure the 60 votes needed to advance. Most Democratic lawmakers have opposed the measure. Meanwhile, Senators from both parties have sought to advance standalone bills to pay federal employees during the shutdown, but none have yet advanced. With no agreement yet on short-term or full-year appropriations, the path to reopening the government remains stalled and uncertain. FY26 Appropriations Bill House Subcommittee Allocation (in Billions) Passed House Committee Passed House Passed Senate Committee Passed Senate Agriculture-Rural Development- FDA $25.523 June 23 by a 35-27 vote July 10 by a 27-0 vote August 1 by an 87-9 vote Commerce- Justice-Science $76.824 September 10 by a 34-28 vote July 17 by a 19-10 vote Defense $831.513 June 12 by a 36-27 vote July 18 by a 219-202 vote July 31 by a 26-3 vote Energy-Water Development $57.300 July 10 by a 35-27 vote September 4 by a 214-213 vote Financial Services- General Government $23.198 September 3 by a 35-28 vote Homeland Security $66.361 June 24 by a 36-27 voteInterior-Environment $37.971 July 22 by a 33-28 vote July 24 by a 26-2 vote Nov. 18, 2025 Item #2 Page 2 of 11 2 www.carpiclay.com Labor-HHS-Education $184.491 September 2 by a 11-7 vote September 9 by a 35-28 vote July 31 by a 26-3 vote Legislative Branch $6.700 June 26 by a 34-28 vote July 10 by a 26-1 vote August 1 by an 81-15 vote MilCon-VA $152.091 June 10 by a 36-27 vote June 25 by a 218-206 vote July 26 by a 26-3 vote August 1 by an 87-9 vote State-Foreign Operations $46.218 July 23 by a 35-27 vote Transportation-HUD $89.910 July 17 by a 35-28 vote July 24 by a 27-1 vote USDA Indicates SNAP Benefits to Expire November 1 Amid Shutdown The U.S. Department of Agriculture has indicated that funding for the Supplemental Nutrition Assistance Program (SNAP) will lapse on November 1 unless Congress enacts Fiscal Year 2026 appropriations legislation. According to an unsigned USDA memo, USDA lacks legal authority to use its approximately $5 billion contingency fund to continue benefits during the ongoing government shutdown. The guidance instructed states to notify recipients that SNAP benefits would be suspended until sufficient federal funding is provided, marking the first time in the program’s history that benefits could be interrupted due to a lapse in appropriations. Advocates estimate that maintaining November benefits would require about $8 billion in additional funding. With no appropriations agreement in place, approximately 42 million Americans may lose access to food assistance. LEGISLATIVE ACTIVITY Senate-Passed NDAA Includes Bipartisan ROAD to Housing Act. On October 9, the Senate passed its version of the National Defense Authorization Act (NDAA) (S. 2296), which includes the Renewing Opportunity in the American Dream (ROAD) to Housing Act (S. 2651). This bipartisan package, led by Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA), seeks to increase housing supply, improve affordability, and streamline federal housing programs. Among its provisions, the bill would reauthorize key federal programs, such as the HOME Investment Partnerships Program and the Community Development Block Grant-Disaster Recovery (CDBG-DR) program, as well as establish new competitive grants to support infrastructure improvements, adaptive reuse of vacant buildings, and pre-approved housing design efforts. The bill’s “Build Now Act” section would allocate bonus CDBG funding to jurisdictions with strong or improving housing production and reduce base allocations for those with below-median growth. The bill also includes measures to streamline environmental reviews for local housing projects, expand flexibility for Emergency Solutions Grant recipients, and exclude veterans’ disability compensation from HUD-VASH income calculations. Senate Confirms Trump Administration Nominees. On October 7, the Senate approved the following nominations by an en bloc 51-47 vote: Nov. 18, 2025 Item #2 Page 3 of 11 3 www.carpiclay.com Alex Adams to be Assistant Secretary of Health and Human Services for Family Support Derek Barrs to be Administrator of the Federal Motor Carrier Safety Administration John Busterud to be Assistant Administrator of the Environmental Protection Agency for Solid Waste Michael Boren to be Under Secretary of Agriculture for Natural Resources andEnvironment David Fink to be Administrator of the Federal Railroad Administration Neil Jacobs to be Under Secretary of Commerce for Oceans and Atmosphere Catherine Jereza to be Assistant Secretary of Energy for Electricity Audrey Robertson to be Assistant Secretary of Energy for Energy Efficiency andRenewable Energy Michael Rutherford to be Assistant Secretary of Transportation for Multimodal Freightand Infrastructure Policy Michael Stuart to General Counsel at the Department of Health and Human Services (HHS) Craig Trainor to be Assistant Secretary of Housing and Urban Development for FairHousing and Equal Opportunity Gregory Zerzan to be General Counsel at the Department of Transportation Senate Committee Approves Transportation-Related Legislation and Nominations. On October 21, the Commerce, Science, and Transportation Committee approved the following transportation-related legislation: The Digital Coast Act (S. 2245), which would reauthorize the National Oceanic and Atmospheric Administration’s Digital Coast Program to provide data, tools, and trainingthat help communities manage their coastal resources The Rotorcraft Operations Transparency and Oversight Reform (ROTOR) Act (S. 2503),which would close a loophole exempting most military aircraft from AutomaticDependent Surveillance-Broadcast (ADS-B) requirements, mandate full ADS-B In/Out adoption to improve airspace safety, strengthen FAA oversight and coordination withthe military through new reporting and audit provisions, and direct updated standards,controller training, and deployment of advanced collision-avoidance technologies Harry Kumar to be Assistant Secretary of Commerce for Legislative andIntergovernmental Affairs Joyce Meyer to be Under Secretary of Commerce for Economic Affairs Seval Oz to be Assistant Secretary of Transportation for Research and Technology Bill Reintroduced to Expand Medicaid Coverage for Institutional Mental Health Care. Representative Shri Thanedar (D-MI) reintroduced the Improving Access to Institutional Mental Health Care Act (H.R. 5662), which would allow Medicaid coverage for patients under age 65 in institutions for mental diseases (IMDs), facilities with more than 16 beds primarily engaged in treating individuals with mental health conditions. This bill is intended to expand access to treatment for individuals experiencing severe mental health crises. Nov. 18, 2025 Item #2 Page 4 of 11 4 www.carpiclay.com CONGRESSIONAL LETTERS Senate Democrats Oppose DOE Decision to Cancel $8 Billion in Energy Projects. On October 9, thirty-seven Democratic senators, led by Energy and Natural Resources Ranking Member Martin Heinrich (D-NM) and Appropriations Committee Vice Chair Patty Murray (D-WA), sent a letter to Energy Secretary Chris Wright and OMB Director Russell Vought opposing the Department of Energy’s cancellation of $8 billion in federal investments across 223 energy projects in 21 states. Lawmakers said the cancellations—many of which affected projects funded under the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, and other appropriations—would result in job losses, higher energy costs, and setbacks for domestic manufacturing and research. The senators argued that the cancellations lack legal justification under federal grant rules and urged the reinstatement of these awards. California Democrats Express Opposition to Cancellation of Hydrogen Hub Agreement. California’s Democratic congressional delegation, led by Representatives Dave Min, George Whitesides, and Mike Levin, sent a letter to Energy Secretary Chris Wright expressing opposition to the Department of Energy’s termination of its $1.2 billion grant agreement with the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), California’s designated regional hydrogen hub. Lawmakers said the decision violates the finalized agreement and could undermine efforts to expand domestic clean energy production. The members contend the ARCHES project was projected to generate over 200,000 jobs and support U.S. manufacturing and innovation in multiple states. The letter requests the Department of Energy’s legal justification for the termination and analysis of the potential economic impact. California Lawmakers Request Information on Camp Pendleton Artillery Incident. On October 22, Representative Mike Levin, Senators Alex Padilla and Adam Schiff, and 26 other members of California’s congressional delegation sent a letter to Defense Secretary Pete Hegseth regarding an October 18 incident at Camp Pendleton in which shrapnel from live artillery fire reportedly struck two California Highway Patrol vehicles. The letter seeks information on the planning, safety reviews, and authorization process for the live-fire demonstration, which involved artillery rounds crossing Interstate 5. The freeway and nearby rail lines had been temporarily closed in advance of the demonstration as a safety precaution. No injuries were reported. Republican Lawmakers Urge Treasury and OMB to Continue CDFI Fund Operations During Shutdown. On October 23, a group of 105 Republican federal lawmakers, led by Senator Mike Crapo (R-ID) and Rep. Young Kim (R-CA), sent a letter to Treasury Secretary Scott Bessent and OMB Director Russell Vought urging the administration to maintain the operations of the Community Development Financial Institutions (CDFI) Fund amid the ongoing government shutdown. The members emphasized the Fund’s role in supporting small businesses, affordable housing, and economic development in rural, tribal, and underserved communities. The letter also highlighted provisions in the One Big Beautiful Bill Act that made the New Markets Tax Credit permanent and recent Senate-passed language to increase transparency and liquidity of the Fund. Lawmakers stated that halting CDFI operations could Nov. 18, 2025 Item #2 Page 5 of 11 5 www.carpiclay.com undermine efforts to expand housing supply and small business investment, urging Treasury and OMB to uphold the Fund’s statutory obligations despite fiscal constraints. FEDERAL AGENCY ACTIONS AND PERSONNEL CHANGES President Trump Signs Executive Order to Overhaul Federal Hiring Process. On October 15, President Trump signed an executive order directing agencies to establish “Strategic Hiring Committees” that include senior political appointees to oversee the creation and filling of federal positions. The order requires agencies to submit annual staffing plans—developed with the Office of Personnel Management (OPM) and Office of Management and Budget (OMB)—to align hiring decisions with agency needs and administration priorities. The order follows the expiration of a federal hiring freeze and maintains restrictions on new or vacant positions unless approved by agency leadership. It exempts certain national security, immigration enforcement, and public safety roles. OMB Revises Shutdown Guidance, Removes Backpay Reference for Furloughed Federal Workers. On October 3, the Office of Management and Budget (OMB) revised shutdown guidance to remove references to the 2019 Government Employee Fair Treatment Act, which guarantees backpay for federal workers following a lapse in appropriations. The document now specifies that “excepted” employees—those required to work without pay—are entitled to backpay once funding is restored. The update contrasts with Office of Personnel Management (OPM) guidance issued days earlier, which continues to state that furloughed employees will receive retroactive pay after a shutdown ends. The White House has reportedly considered a new legal interpretation limiting the 2019 law’s applicability to past shutdowns. Federal employee unions and several key lawmakers have maintained that the law provides backpay to all affected employees following any future lapse in appropriations. DOJ Establishes New Enforcement and Affirmative Litigation Branch. The Department of Justice (DOJ) has created a new Enforcement & Affirmative Litigation Branch within its Civil Division. The Enforcement Section will pursue cases under major consumer protection and public health laws. The Affirmative Litigation Section will represent the federal government in cases involving the enforcement of federal laws and constitutional provisions, including in lawsuits against state and local governments. According to DOJ, the new branch will focus on priorities such as pursuing cases related to immigration enforcement. DOT Publishes Workplace Drug and Alcohol Testing Programs SNPRM. On October 1, DOT published a supplemental notice of proposed rulemaking (SNPRM) that updates terminology in DOT’s drug and alcohol testing regulations consistent with Executive Order 14168, “Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government.” DOT continues to propose a provision to require a directly observed urine collection in situations where oral fluid tests are currently required, but oral fluid testing is not yet available. DOT Seeking BTIC Nominations. On October 21, DOT announced it is seeking nominations for the Beautifying Transportation Infrastructure Council (BTIC) which will advise the Secretary Nov. 18, 2025 Item #2 Page 6 of 11 6 www.carpiclay.com on enhancing the aesthetic value of the nation’s transportation systems. Nominations are due by November 21, 2025. DOT IG Publishes Report on the Observations and Lessons Learned from OIG Reviews of NextGen. On September 29, DOT’s Office of Inspector General (IG) published a report titled “Capstone Memorandum: Observations and Lessons Learned from OIG Reviews of the Next Generation Air Transportation System (NextGen).” The report takes stock of more than two decades of FAA and industry work on NextGen, assessing what has succeeded, what has fallen short, and what lessons should guide future modernization. It finds that while FAA has made progress—introducing new capabilities, improving efficiency, and delivering limited benefits—NextGen has been delivered in a much less transformative fashion than initially envisioned: many systems are delayed, costs have grown, and many promised benefits remain unrealized. As of the end of 2024, the OIG estimates only about 16 % of NextGen’s total projected benefits have been achieved. Key programs (e.g. DataComm, Terminal Flight Data Manager, weather systems) are over budget and pushed into the 2030s (or beyond). The memo also identifies persistent structural challenges: unrealistic planning and assumptions, weak acquisition and contract oversight, difficulties in securing industry cooperation and investment (especially in avionics equipage), the burdens of sustaining legacy systems, workforce and organizational instability, complex interdependencies among programs, and risks to resiliency and cybersecurity. The OIG presents a set of lessons learned—such as the need for realistic long-term planning, modular contracting, stakeholder engagement, better cost/benefit modeling, and rigorous risk management—that it argues FAA should apply going forward, especially as the agency shifts toward its planned “Brand New Air Traffic Control System” initiative. EPA Releases New Cybersecurity Tools for Water Systems. On October 23, the Environmental Protection Agency (EPA) released new and updated resources to help public water systems strengthen cybersecurity and emergency response planning. The materials include an updated emergency response plan guide for wastewater utilities, a cybersecurity incident response plan template, new incident action checklists, and a cybersecurity procurement checklist to help utilities assess vendor practices. EPA said the tools aim to help utilities prevent and respond to cyberattacks that could threaten access to safe drinking water or disrupt wastewater treatment. FAA Safety Messages. Due to the government shutdown, the Federal Aviation Administration (FAA) will have limited communications but will continue to send out significant safety messages through other FAA portals. FAA Deploys Phase One of New NOTAM System. On September 30, FAA announced the deployment of Phase 1 of its new Notice to Airmen System (NOTAM), which delivers modernized, real-time alerts about airspace changes to early adopters while continuing to operate alongside the legacy system to ensure a smooth transition. This initial phase is designed to test functionality and improve reliability, addressing longstanding issues with the old NOTAM system. Phase 2, which will complete the full transition and retire the legacy platforms, is scheduled to begin in February 2026 and be fully implemented by late spring 2026. Nov. 18, 2025 Item #2 Page 7 of 11 7 www.carpiclay.com FMCSA Announces It Will Withhold California MCSAP Funds. On October 16, the Federal Motor Carrier Safety Administration (FMCSA) announced it will withhold $40.7 million in Motor Carrier Safety Assistance Program (MCSAP) funds from California due to the state’s failure to enforce federal English-language proficiency requirements for commercial drivers. The withheld funds would have supported roadside inspections, safety audits of trucking companies, traffic enforcement, and public education programs aimed at improving highway safety. According to FMCSA, to restore the funding, California must adopt and implement regulations consistent with federal standards governing commercial driver qualifications. HUD Delays Effective Date of HOME Program Rule. On October 22, the Department of Housing and Urban Development (HUD) issued a final rule delaying the effective date for portions of its “HOME Investment Partnerships Program: Program Updates and Streamlining” rule until April 30, 2026. Originally scheduled to take effect October 30, 2025, the affected provisions include revisions to regulations that govern HOME program cost limits and tenant protections. HUD stated the delay will allow additional time for participating jurisdictions and program partners to prepare for compliance with the updated requirements. The original HOME final rule was published on January 6, 2025, with prior extensions in February and April 2025. ### Nov. 18, 2025 Item #2 Page 8 of 11 1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 1 Date: November 4, 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 Legislative Summary — October 2025 LEGISLATIVE UPDATE Governor’s Final Legislative Actions for the Year October 13 marked the deadline for Governor Gavin Newsom to act on all pending legislation. Of the 2,833 measures introduced in 2025, 917 reached the Governor’s desk. Ultimately, 794 were signed into law and 123 were vetoed—reflecting an approval rate of roughly 86 percent, consistent with the Governor’s historical average. It is worth noting that no Governor’s veto has been overridden since 1980. Bills that did not reach the Governor’s desk either died in committee or were shelved as two- year bills. Budget Update In October, the Legislative Analyst’s Office (LAO), the Legislature’s nonpartisan research and advisory division, released a budget update. In the report, the LAO states that the 2025-26 budget resolved a $15 billion deficit—slightly higher than previously estimated—and projects ongoing annual shortfalls exceeding $15 billion through the 2028-29 budget cycle. 2026 CEQA Ballot Initiative On October 21, the California Chamber of Commerce announced plans for an initiative for the 2026 statewide general election that would substantially amend the California Environmental Quality Act (CEQA). Ballot measures that have not yet qualified for the November 2026 ballot must do so by June 25, 2026. Several measures have already qualified, including ACA 13 (Ward) [Chapter 176, Statutes of 2023], SCA 1 (Newman) [Chapter 204, Statutes of 2024], and SB 42 (Umberg) [Chapter 245, Statutes of 2025]. Housing Seminar On October 27, the California Association of Councils of Governments held a conference examining the state’s accelerating shift toward centralized, state-led housing production. The event highlighted emerging priorities of speed, accountability, and diminished local discretion. Presenters detailed how recent legislation streamlines CEQA compliance, shortens permitting timelines, and mandates higher densities near transit corridors. A consistent theme was the diminishing role of local governments, as new state rules increasingly preempt local zoning for ADUs, adaptive reuse projects, and properties owned by educational institutions. Overall, the discussion framed 2025 as Exhibit 2 Nov. 18, 2025 Item #2 Page 9 of 11 1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 2 a pivotal year marked by tighter regulations, expedited approvals, and rising fiscal and procedural pressures on local jurisdictions. ADMINISTRATION UPDATE CARB Board Meeting On October 23, the California Air Resources Board (CARB) held a board meeting focused on federal actions that could affect California’s clean air authority and state transportation funding. The meeting also reviewed developments in the state’s electric vehicle market—30% of new cars sold in California are electric—and efforts to enhance coordination among agencies to expand and improve charging infrastructure. The session concluded with discussions on the need for continued collaboration among public agencies and private partners to address affordability and infrastructure challenges in the transition to zero-emission vehicles. ACTIVE POSITIONED LEGISLATION •AB 87 (Boerner) Housing development: density bonuses. o Location: Assembly Chaptered o Position: Support •AB 253 (Ward) California Residential Private Permitting Review Act: residential building permits. o Location: Assembly Chaptered o Position: Oppose •AB 379 (Schultz) Crimes: prostitution. o Location: Assembly Chaptered o Position: Support •AB 424 (Davies) Alcohol and other drug programs: complaints. o Location: Assembly Chaptered o Position: Support •AB 492 (Valencia) Alcohol and drug programs: licensing. o Location: Assembly Chaptered o Position: Support •AB 610 (Alvarez) Housing element: governmental constraints: disclosure statement. o Location: Assembly Chaptered o Position: Oppose •AB 650 (Papan) Planning and zoning: housing element: regional housing needs allocation. o Location: Assembly Vetoed o Position: Support •AB 942 (Calderon) Electricity: climate credits. o Location: Senate Rules o Position: Neutral •AB 996 (Pellerin) Public Resources: sea level rise plans. o Location: Assembly Chaptered o Position: Support •AB 1154 (Carrillo) Junior accessory dwelling units. o Location: Assembly Chaptered o Position: Watch •SB 9 (Arreguín) Accessory Dwelling Units: ordinances. Nov. 18, 2025 Item #2 Page 10 of 11 1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 3 o Location: Senate Chaptered o Position: Watch •SB 16 (Blakespear) Ending Street Homelessness Act. o Location: Assembly Housing And Community Development o Position: Watch •SB 79 (Wiener) Housing development: transit-oriented development. o Location: Senate Chaptered o Position: Oppose •SB 92 (Blakespear) Housing development: density bonuses. o Location: Senate Chaptered o Position: Support •SB 346 (Durazo) Local agencies: transient occupancy taxes: short-term rental facilitator. o Location: Senate Chaptered o Position: Support •SB 358 (Becker) Mitigation Fee Act: mitigating vehicular traffic impacts. o Location: Senate Chaptered o Position: Oppose •SB 707 (Durazo) Open meetings: meeting and teleconference requirements. o Location: Senate Chaptered o Position: Oppose Unless Amended LOOKING FORWARD •January 1: All legislation signed into law in 2025, unless otherwise stated, goes into effect •January 5: The Legislature reconvenes for the 26 legislative session •January 10: The Governor releases fiscal year 2025-2026 budget proposal •January 31: Last day for two-year bills to advance out of their house of origin •February 20: Last day to introduce bills in 2026 Nov. 18, 2025 Item #2 Page 11 of 11 CALIFORNIA PUBLIC POLICY GROUP •PUBLICPOLICYGROUP.COM City of Carlsbad Legislative Subcommittee November 18, 2025 CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Sharon Gonsalves, Managing Director, California Public Policy Group CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Upcoming Key Dates •January 5: Legislature reconvenes. •January 10: Budget must be submitted by the Governor. •January 16: Last day for policy committees to hear and report fiscal bills introduced in their house in the odd-numbered year. •January 31: Last day for each house to pass bills introduced in that house in the odd-numbered year. CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Senate Leadership Update •On November 17, Senator Monique Limon officially sworn in as the state Senate President pro Tempore. •Senator McGuire held the role for the past year and half. • A formal swearing-in ceremony will take place on January 5, 2026, in Sacramento. CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Budget Outlook October’s income taxes receipts were $2B over projections. The month’s tax receipts include a few billion dollars of 2024 and 2025 taxes from Los Angeles County delayed for months due to the January wildfires. The Legislative Analyst’s Office typically releases its first surplus or deficit estimate for the next year’s budget in its annual fiscal outlook the week before Thanksgiving. The Newsom administration must release its new estimates and proposed 2026 budget plan on or before Saturday, January 10, 2026. CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM CARB Board Meeting CARB Board meeting addressed several interesting topics including: •Federal actions that could affect California’s clean air authority and state transportation funding. •30% of new cars sold in California are electric. •The session concluded with discussions on the need for continued collaboration among public agencies and private partners to address affordability and infrastructure challenges in the transition to zero-emission vehicles. CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Looking Forward •End of Year Report. •Finalize revisions to legislative platform. •Develop and pitch legislative proposals for 2026. CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Questions/Discussion Thank You! CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM