HomeMy WebLinkAbout2025-12-02; City Council Legislative Subcommittee; 02; Legislative and Advocacy UpdateMeeting Date: Dec. 2, 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, November 2025
2.California Public Policy Group – 2025 End of Year Report
LEGISLATIVE SUBCOMMITTEE
Dec. 2, 2025 Item #2 Page 1 of 31
1
November 24, 2025
City of Carlsbad
Federal Update
www.carpiclay.com
Exhibit 1
Fiscal Year 2026 Appropriations Update
On November 12, President Trump signed H.R. 5371 to end the 43-day federal government shutdown, the longest in U.S. history. The impasse broke on November 10 when eight Senate Democrats joined nearly all Senate Republicans to advance a combined continuing resolution and three-bill appropriations minibus package. The House then approved the package on
November 12. This law funds the government through January 30, 2026, and extends several expiring authorities, including the Farm Bill through September 30, 2026, as well as the National Flood Insurance Program and Temporary Assistance for Needy Families through January 30, 2026. The measure also delays Medicaid Disproportionate Share Hospital cuts until that date.
The package also included a three-bill FY26 appropriations minibus covering Agriculture-Rural Development-FDA, Military Construction-Veterans Affairs, and the Legislative Branch, which include Community Project Funding and Congressionally Directed Spending. The legislation restores federal capacity to administer SNAP benefits, which had been disrupted during the shutdown, and includes provisions to prevent further federal workforce
reductions during the funding period while reinstating roughly 4,200 employees terminated during the lapse. Furloughed federal workers will receive back pay. While federal agencies resume normal operations, Congress has turned its attention to assembling a second FY26 appropriations package, which may include the Commerce-Justice-Science, Defense, Labor-HHS-Education, and Transportation-HUD bills.
FY26 Appropriations Bill
House Subcommittee Allocation (in Billions)
Passed House Committee
Passed House
Passed Senate Committee
Passed Senate Signed into Law
Agriculture-Rural Development-FDA $25.523 June 23 by a 35-27 vote
November 12 by a 222-209 vote
July 10 by a 27-0 vote
August 1 by an 87-9 vote November 12 by a 60-40 vote
November 12
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
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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
vote
Interior-Environment $37.971 July 22 by a 33-28 vote July 24 by a 26-2 vote
Labor-HHS-Education $184.491 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
November 12 by a 222-209 vote
July 10 by a 26-1 vote
August 1 by an 81-15 vote
November 12 by a 60-40 vote
November 12
Military Construction-Veterans Affairs $152.091 June 10 by a 36-27 vote
June 25 by a 218-206 vote
November 12 by a 222-209 vote
July 26 by a 26-3 vote
August 1 by an 87-9 vote November 12 by a 60-40 vote
November 12
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
EPA and Army Corps Propose Revised WOTUS Definition
On November 17, the Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers (USACE) released a proposed rule to revise the definition of “waters of the United States” (WOTUS) under the Clean Water Act. The proposal would narrow the scope of federal
jurisdiction by requiring a direct, continuous surface connection—or a predictable and consistent flow—to a traditional navigable water for most tributaries and wetlands to qualify as WOTUS. EPA and USACE stated that the rule is intended to provide a clear and durable framework consistent with the Supreme Court’s 2023 decision in Sackett v. EPA. According to the agencies, the proposal would define key terms such as “relatively permanent,” “continuous
surface connection,” and “tributary”; clarify that wetlands must be physically indistinguishable from jurisdictional waters; reaffirm exclusions for certain ditches, prior converted cropland, and waste treatment systems; and add an explicit exclusion for groundwater. Comments are due by January 5, 2026.
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DHS Proposes Rescission of 2022 Public Charge Rule
On November 19, the Department of Homeland Security (DHS) and U.S. Citizenship and Immigration Services released a Notice of Proposed Rulemaking (NPRM) proposing to rescind the Biden Administration’s 2022 public charge rule. Federal immigration officials apply the public charge ground of inadmissibility to assess whether an applicant is likely to become
primarily dependent on government support. DHS states that the 2022 regulation is inconsistent with congressional intent and limits the agency’s ability to make accurate and reliable public charge determinations. DHS proposes to restore broader discretion to evaluate all relevant factors and to address procedures for the breach and cancellation of public charge bonds. DHS expanded the definition in a 2019 rule to include certain non-cash benefits such
as Medicaid, SNAP, and housing assistance, but that rule was withdrawn in 2021 following litigation. The Biden Administration finalized a replacement rule in 2022 that limited consideration to cash assistance and long-term institutionalization and prohibited counting non-cash benefits against applicants. The new NPRM would reverse the 2022 rule and reestablish a broader public charge framework. Comments on the NPRM are due by December 19.
Congressional Leaders Release 2026 Calendar
House Majority Leader Steve Scalise (R-LA) and Senate Majority Leader John Thune (R-SD) announced the schedule of in-session days in 2026 for their respective chambers. A combined 2026 congressional calendar can be found HERE.
LEGISLATIVE ACTIVITY
House Subcommittee Advances Broadband Bills Focused on Permitting and
Deployment. On November 18, the House Energy and Commerce Subcommittee on
Communications and Technology advanced a package of 28 bills intended to accelerate broadband deployment nationwide. The panel approved six bipartisan measures addressing federal tracking of deployment requests, review timelines, and permitting processes. A seventh bill—the American Broadband Deployment Act of 2025 (H.R. 2289)—consolidated 21 bills and
advanced on a party-line vote, including provisions that would preempt certain state and local
authority over public rights-of-way and land-use decisions, impose and in some cases “deem granted” federal and state permitting timelines (“shot clocks”), and narrow environmental and historic preservation review requirements for upgrades to existing wireless and wireline facilities, broadband deployment on specified federal lands, brownfields, floodplains, and in
disaster areas. These bills now move to the full House Energy and Commerce Committee for
further consideration. Bicameral Bill Introduced to Create Federal Pilot Program for Wildfire Technology Deployment. On November 18, Representatives Young Kim (D-CA) and Jason Crow (D-CO)
and Senators Ben Ray Luján (D-NM) and John Curtis (R-UT) introduced the Fire Innovation
Unit Act (H.R. 6094/S.3190), a bipartisan bill to establish a coordinated pilot program to test,
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evaluate, and deploy emerging wildfire prevention, detection, communication, response, and mitigation technologies. The bill would direct the Departments of Agriculture and the Interior to create a “Fire Innovation Unit” to work with federal, state, Tribal, and local agencies and public-
private partners to assess and scale promising technologies. It would also outline a multi-
agency framework for real-world technology demonstrations, sets evaluation criteria focused on effectiveness and cost efficiency, and requires annual reports to Congress on deployed technologies, procurement barriers, and opportunities for wider adoption.
CONGRESSIONAL LETTERS
Democrats Urge Halt to Reported Plans for New Offshore Oil and Gas Leasing. On
October 30, Senators Alex Padilla (D-CA) and Cory Booker (D-NJ) and Representatives Jared
Huffman (D-CA) and Frank Pallone (D-NJ) led 12 Senators and 91 Members of Congress in sending a letter to President Trump and Interior Secretary Burgum urging the abandonment of reported plans to open new offshore oil and gas leases in federal waters. The lawmakers warned that expanding offshore drilling in the Atlantic, Pacific, Arctic, and Eastern Gulf regions
could endanger coastal ecosystems, tourism, and fishing industries, while also undermining
progress on clean energy development. The letter calls for maintaining existing protections for coastal waters, prioritizing coastal resilience measures such as flood and storm-surge protection, and restoring a clear path for offshore wind projects following recent lease withdrawals.
Senate Democrats Urge HUD to Reverse Course on CoC NOFO. On November 13, Senate Appropriations Committee Vice Chair Patty Murray (D-WA) led 42 Senate Democrats in sending a letter to HUD Secretary Scott Turner urging the Department to halt and reconsider major changes to the Continuum of Care (CoC) program following reports of a forthcoming
overhaul. The FY 2025 CoC Notice of Funding Opportunity (NOFO)—released the next day—
includes significant shifts in funding priorities, including a reported cap limiting permanent housing activities to 30 percent of awards. These lawmakers warned the changes could conflict with the McKinney-Vento Homeless Assistance Act and risk displacing nearly 200,000 people currently supported through permanent housing projects. The Senators urged HUD to instead
renew existing CoC grants under the two-year funding cycle Congress authorized for FY 2024-
2025, citing the risk of program disruption as many grants expire in early 2026. They also raised concerns about insufficient time for communities to respond to a late-year NOFO and pointed to broader uncertainty stemming from recent HUD policy actions.
FEDERAL FUNDING OPPORTUNITIES
HUD Releases CoC/YHDP NOFO with Structural Changes. On November 14, HUD
released its FY25 Continuum of Care (CoC) and Youth Homeless Demonstration Program
(YHDP) Notice of Funding Opportunity (NOFO), making more than $3.9 billion in funding available. The FY25 NOFO includes major structural changes: only 30% of a CoC’s Annual Renewal Demand (ARD) is protected in Tier 1 (down from 90%), 70% of funding will be fully
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competitive, and no more than 30% of ARD may be used for permanent housing, potentially requiring significant reallocation toward other project types. The NOFO elevates treatment, recovery, and public safety as national priorities, favors projects with required service
participation and strong law-enforcement partnerships, and authorizes HUD to reject projects
for racial preferences, use of non-binary sex definitions, or activities characterized as harm reduction. It also adds new post-award conditions tied to immigration requirements and recent executive orders on faith-based participation and diversity, equity, and inclusion. Applications are due by January 14 at 8:00 p.m. ET.
FEDERAL FUNDING AWARDS
FTA Announces Bus Grant Awards. On November 20, the Federal Transit Administration
(FTA) announced $2 billion in federal funding to support 165 transit projects to modernize bus infrastructure and improve public transportation systems. Awarded through FTA’s Fiscal Year 2025-26 Grants for Buses and Bus Facilities Program and Low or No Emission Grant Program, these funds will support the purchase of approximately 2,400 new buses, including low- and
zero-emission models, and the construction or rehabilitation of related facilities. The funding
will help replace aging vehicles, improve transit reliability and safety, and support manufacturing jobs using American-made parts and labor. FEDERAL AGENCY ACTIONS AND PERSONNEL CHANGES
OMB and OPM Issue Guidance Requiring Senior Review of Federal Agency Hiring. On November 5, the Office of Management and Budget (OMB) and the Office of Personnel
Management (OPM) issued joint guidance implementing President Trump’s October 15
Executive Order, which directs federal agencies to establish Strategic Hiring Committees—comprised primarily of senior political appointees—to review and approve all new federal career hires once the government reopens. Under the policy, agency hiring panels must include the deputy agency head and chief of staff, with authority to approve or deny requests to fill
vacancies. Agencies are also required to submit annual staffing plans identifying critical hiring
priorities and provide quarterly updates to OMB and OPM on progress and workforce composition. The order does not apply to military personnel or non-career political appointees. DOE Announces Agency Reorganization Affecting Clean Energy Offices. On November
20, the Department of Energy (DOE) announced a reorganization that establishes new
divisions focused on hydrocarbons, geothermal energy, and fusion and removes several clean-energy and efficiency offices from its organizational chart. The changes include renaming the Loan Programs Office as the Office of Energy Dominance Financing and eliminating the Office of Clean Energy Demonstrations and the Office of Energy Efficiency and Renewable Energy.
DOE said the realignment is intended to reflect updated agency priorities, including expanded
energy production and continued support for nuclear security and scientific research.
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DOT Immigration Condition on Transportation Grants Blocked by Federal Judge. On November 4, Chief Judge John J. McConnell, Jr. of the U.S. District Court for the District of Rhode Island ruled that the Department of Transportation (DOT) exceeded its statutory
authority when it sought to condition all federal transportation grants on state cooperation with federal civil immigration enforcement. In response to a lawsuit filed by 20 states, the court held that the “Immigration Enforcement Condition” was not authorized by Congress, violated the
Administrative Procedure Act, and ran afoul of constitutional limits on federal funding conditions. The ruling vacated the condition and has enjoined DOT from enforcing it against
the plaintiff states. DOT Publishes Procedures in Regulating and Enforcing Unfair or Deceptive Practices NPRM. On October 30, DOT published a notice of proposed rulemaking (NPRM) that would reinstate the hearing procedures used when conducting a discretionary rulemaking action
under its authority to regulate unfair or deceptive practices in air transportation or the sale of
air transportation. This notice of proposed rulemaking (NPRM) also seeks comments on the rescission of a final rule published by the Department. Comments are due by December 1. DOT Releases Design Specifications for New Advanced Female Crash Test Dummy. On
November 20, DOT unveiled detailed design specifications for the THOR-05F by Humanetics,
the first advanced small-female crash test dummy intended for use in federal safety testing. The model, developed with National Highway Traffic Safety Administration (NHTSA) sponsorship, reflects decades of research into sex-specific differences in crash injury risks and includes more than 150 sensors to capture expanded head, chest, abdominal, pelvic, and
lower-leg injury metrics. NHTSA will issue five technical documents outlining the dummy’s
design and capabilities. Once a final rule is issued, the THOR-05F will be considered for incorporation into the New Car Assessment Program and Federal Motor Vehicle Safety Standards compliance testing.
EPA Announces Accelerated Timelines for Tijuana River Cleanup Projects. On October
30, the Environmental Protection Agency (EPA) announced that construction timelines for projects addressing cross-border wastewater flows in the Tijuana River Valley have been shortened by an additional nine months following a 100-day binational review. The review, conducted under a July 2025 U.S.-Mexico Memorandum of Understanding, confirmed all
projects remain on track to meet accelerated deadlines. According to EPA, the MOU has reduced overall construction time by about 12 years across both U.S. and Mexico projects originally established under Minute 328, the 2022 binational agreement to address the Tijuana River sewage crisis. The agency said the changes will expedite long-term solutions to protect public health and coastal water quality in the region.
FCC Issues NOI on Wireline Deployment; Local Governments File Joint Comments. The Federal Communications Commission (FCC) released a Notice of Inquiry (NOI) regarding whether state and local statutes, regulations, fees, permitting timelines, and other legal requirements “prohibit or have the effect of prohibiting” the provision of wireline
telecommunications services under Section 253 of the Communications Act. The FCC is
seeking information on authorization delays, right-of-way access, fee structures, in-kind requirements, and potential candidates for preemption. On November 17, the United States
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Conference of Mayors, the National Association of Counties, the National League of Cities, and the National Association of Telecommunications Officers and Advisors jointly submitted comments emphasizing that local permitting is essential for managing finite public rights-of-
way and protecting public safety. Their filing disputes claims that local processes are barriers
to deployment, cites safety risks from improper construction, rejects fee-related preemption proposals, and urges the FCC to focus streamlining efforts on federal—not local—permitting. Reply comments are due by December 17.
Acting FEMA Administrator Resigns. On November 17, Acting Administrator David
Richardson resigned from the Federal Emergency Management Agency (FEMA) after roughly six months in the role. Richardson, who also led the Department of Homeland Security’s (DHS) Countering Weapons of Mass Destruction Office, said he plans to return to the private sector. DHS has announced that FEMA Chief of Staff Karen Evans will become acting administrator
on December 1. DHS also stated that a forthcoming report from the FEMA Review Council,
established earlier this year, will help guide ongoing efforts to reshape FEMA’s mission and operations. FWS Proposes Four Rules to Revise ESA Regulations. On November 19, the U.S. Fish and
Wildlife Service (FWS) announced four proposed rules affecting Endangered Species Act
(ESA) listing procedures, interagency consultation, threatened species protections, and critical habitat exclusions. Two proposals were issued jointly with the National Marine Fisheries Service. FWS states the updates are intended to clarify standards for listing and critical habitat designations; restore prior definitions used in ESA section 7 consultations; require species-
specific 4(d) rules for threatened species; and reinstate its 2020 approach to evaluating
economic, national security, and other impacts when considering critical habitat exclusions. Comments are due by December 22. HUD Delays New Energy Code Requirements for HUD-Financed Housing. On November
10, the Department of Housing and Urban Development (HUD) published a notice providing
an additional extension of compliance dates for the 2021 edition of the International Energy Conservation Code (IECC) and the 2019 edition of ANSI/ ASHRAE/IES Standard 90.1: Energy Standard for Buildings, Except Low-Rise Residential Buildings (ASHRAE 90.1) adopted in the April 26, 2024 Final Determination for certain HUD programs. For Federal Housing
Administration (FHA)-insured Multifamily, FHA-insured Single Family, Public Housing Capital
Fund, and Section 8 Project-Based Vouchers, the compliance date is now May 28, 2026; for Competitive Grants (Choice Neighborhoods, Section 202, Section 811), the requirement will apply upon publication of each program’s FY 2026 notice of funding opportunity. HUD is not changing the compliance dates for HOME and Housing Trust Fund but confirms that when
those funds are layered with programs covered by this extension, the later applicable program
compliance date governs. Interior Proposes Expansive Offshore Oil and Gas Leasing Plan. On November 20, the Department of the Interior released a draft proposed 2026–2031 offshore oil and gas leasing
program that contemplates up to 34 lease sales across the Outer Continental Shelf. The
proposal would open federal waters off California to new leasing for the first time in roughly 40 years and include potential sales along the Gulf Coast. The plan outlines six possible sales off
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Southern, Central, and Northern California between 2027 and 2030, two sales in the eastern Gulf in 2029 and 2030, and 21 lease sales off Alaska. Interior states the plan is intended to implement a January executive order by President Trump and a February directive from
Secretary Burgum directing the Department to accelerate offshore energy development
consistent with federal law. Public comments on the draft program are expected to be due by January 22, 2026. ## ## ##
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2025 END OF YEAR REPORT
CITY OF CARLSBAD
Prepared by:
Sharon Gonsalves, Managing Director
(916) 849-5536
sgonsalves@publicpolicygroup.com
Exhibit 2
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TABLE OF CONTENTS
TRANSMITTAL LETTER.............................................................................................. 3
CPPG/CITY OF CARLSBAD 2025 LEGISLATIVE HIGHLIGHTS ........................................ 5
YEAR IN REVIEW ..................................................................................................... 6
KEY PERFORMANCE INDICATORS ............................................................................ 8
HIGHLIGHTS: LEGISLATIVE ADVOCACY SUCCESS .......................................... 8
SUMMARY OF ADVOCACY DELIVERABLES.................................................... 13
LOOKING AHEAD .................................................................................................. 14
LOCAL GOVERNMENT REVENUE.................................................................. 14
HOUSING AND LAND USE ........................................................................... 15
CALIFORNIA ENVIRONMENTAL QUALITY ACT CLEAN UP ............................... 15
ELECTION YEAR POLITICS ........................................................................... 16
GRANT FUNDING ....................................................................................... 17
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TRANSMITTAL LETTER
November 20, 2025
To: Geoff Patnoe
City Manager
City of Carlsbad
From: Sharon Gonsalves
Managing Director
California Public Policy Group
Dear Mr. Patnoe:
On behalf of the California Public Policy Group (CPPG), I want to thank you, your team, and the City
of Carlsbad City Council for continuing to engage our firm for state legislative advocacy services.
This End of Year Report provides an overview of our work with the City during the 2025 legislative year
and outlines next steps as we prepare for 2026.
Over the past year, CPPG worked closely with your staff to strengthen the City’s presence in
Sacramento and advance its policy objectives. Through consistent engagement with the
Administration, state agencies, and legislative leadership, we continued to elevate the City’s profile
and ensure that your local priorities were clearly understood in state-level policy discussions.
Our team actively monitored and engaged with more than 900 pieces of legislation, with the City
taking positions on 25 measures and achieving positive outcomes on most of them. CPPG’s
advocacy included direct meetings with legislators, drafting and coordinating position letters,
developing policy analyses, and collaborating with stakeholder coalitions to mitigate adverse
impacts and advance favorable outcomes. These efforts resulted in more than 430 meaningful
touchpoints with your staff or on your behalf.
This year’s legislative advocacy program was strengthened by increased City engagement, including
weekly check-ins, monthly subcommittee meetings, and a Sacramento trip by both subcommittee
members to advocate for the City’s interests. We have taken a measured approach to advocating for
the City by issuing strategic positions and working with statewide associations to deliver the most
effective messaging possible. Although the City did not sponsor a bill this year, CPPG engaged with
several stakeholders and policy consultants on proposals developed by the City for consideration in
the upcoming year.
As always, our work reflects a shared commitment to ensuring that state policies remain workable,
fiscally responsible, and reflective of the needs of local agencies like the City of Carlsbad. We are
grateful for your continued partnership and for the opportunity to represent your interests at the
State Capitol. We look forward to building on the progress made in 2025 and continuing to deliver
results in the year ahead.
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Sincerely,
Sharon Gonsalves
Managing Director
California Public Policy Group, Inc.
CC: Jason Haber, Intergovernmental Affairs Director, City of Carlsbad
Cindie McMahon, City Attorney, City of Carlsbad
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CPPG/CITY OF CARLSBAD 2025 LEGISLATIVE
HIGHLIGHTS
PIECES OF LEGISLATION TRACKED ON BEHALF
OF THE CITY
Legislation tracked and assessed for impacts on the City
to its legal, operational, or fiscal authority and decision
making.
SUCCESS RATE ON LEGISLATIVE
ENGAGEMENT—MAKING THE CITY’S VOICE
HEARD
CPPG achieved the desired outcome or secured critical
amendments to dramatically reduce adverse impacts to
the City. (13 desired outcomes out of 24 total positions.)
* Some bills that the City positioned in support of were
made into two-year bills.
COMBINED DELIVERABLES AND
TOUCHPOINTS
Legislative updates, position letters, policy and political
analyses, and meetings with the City and/or with the
Administration or the Legislature on behalf of the City.
*From November 1, 2024 to October 31, 2025.
920+
13/24
460+
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YEAR IN REVIEW
The Legislature Returns: The California State Legislature held its Organizational Session in early
December 2024, officially launching the 2025-26 legislative session, and reconvened in early January
to begin regular business. The session welcomed 35 newly elected state legislators—25
Assemblymembers and 10 Senators—who joined a Legislature led by Assembly Speaker Robert
Rivas (D-Hollister) and Senate President pro Tempore Mike McGuire (D-Geyserville). In the
Assembly, Josh Lowenthal (D-Long Beach) was appointed the new Speaker Pro Tempore, with
Cecilia Aguiar-Curry (D-Winters) remaining as Majority Leader. The 2024 election brought a minor
shift in the Legislature’s composition, with Republicans gaining two seats in the Assembly and one
seat in the Senate. In early May, a reorganization plan was introduced to dissolve the Business,
Consumer Services, and Housing Agency and create two new entities: the Business and Consumer
Services Agency and the California Housing and Homelessness Agency. The plan will take effect on
July 1, 2026.
The Governor’s Budget: In early January, Governor Gavin Newsom revealed his proposed budget for
fiscal year 2025-26 during a press conference. The proposal projected total state spending at
$322.27 billion, with a minor surplus of $363 million. The May revision to the January proposal
indicated a slight reduction in total spending to $321.9 billion, with a deficit now projected at $12
billion. The deficit was based on the increasing costs of state programs and declining economic
conditions from a “growth recession” caused by federal policies in conjunction with the wildfires
which devastated Southern California, resulting in over 18,000 homes being destroyed. In mid-June,
the Legislature met its constitutional deadline to advance a balanced state budget for fiscal year
2025-26, passing SB 101 (Wiener) [Chapter 4, Statutes of 2025]. The final budget totaled $324.7
billion in spending—about 10% higher than in 2024-25—and closed a $12.3 billion deficit.
In late June, provisions of several bills having to do with building standards and the California
Environmental Quality Act (CEQA) were added into AB 130 (Committee on Budget) [Chapter 22,
Statutes of 2025], the housing budget trailer bill. The final version of AB 130 represented one of the
most consequential housing and land use measures of 2025. The bill established a moratorium on
new or amended state and local residential building standards—including energy, green building,
and design requirements—from October 1, 2025, through June 1, 2031. Changes to CEQA in the bill
included new categorical exemptions for certain infill and mixed-income projects, streamlined
litigation timelines, and restrictions on the scope of CEQA challenges that can be brought against
projects consistent with certified housing elements.
These CEQA changes were among the most far-reaching in years and signaled a broader legislative
effort to reduce procedural barriers to housing construction. Perhaps most notably, AB 130 marked
the first time in recent memory that major policy reforms were included in a budget bill instead of
being pursued through standalone legislation. This approach enabled the provisions to advance
rapidly through the legislative process, bypass most policy and fiscal debate, and take effect
immediately rather than at the start of 2026.
More Housing Laws Aimed at Targeting Local Agencies: In 2025, the Legislature once again placed
much of the responsibility for solving California’s housing crisis on local governments. As in prior
years, a central theme of the legislative agenda was curbing or preempting local control over land
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use and housing decisions. Lawmakers advanced a series of measures designed to streamline
approvals, override local zoning, and impose new state-level mandates on production targets and
permitting timelines.
These actions reflect a persistent narrative that local governments continue to act as barriers to
housing growth—a view that continues to shape state policy. Yet this approach often overlooks the
substantial progress many cities and counties have already made. Across the state, local
governments have implemented innovative programs to incentivize affordable housing, expedite
approvals for infill and accessory dwelling units, and adopt more flexible zoning standards to support
density and mixed-use development.
Notably, there has been a subtle but important shift in tone among some lawmakers, signaling a
growing recognition that local agencies are not solely responsible for California’s housing shortfall.
For example, the Senate Housing Committee declined to advance Senator Scott Wiener’s (D-San
Francisco) proposal to dramatically expand the controversial SB 9 (Atkins, 2022), citing the need to
respect local community planning processes and acknowledging that eliminating all development
fees would undermine the ability of local governments to fund essential public services.
Similarly, SB 499 (Stern) [Chapter 543, Statutes of 2025] was passed and signed by Governor
Newsom, marking a rare acknowledgement of the balance between housing production and
community infrastructure. The measure reaffirms the importance of parks and open space as critical
public safety assets and restores the ability of public utilities to assess connection and capacity
charges at the time of development—recognizing that such tools are vital for maintaining
sustainable growth.
While these developments suggest a modest rebalancing of the state-local relationship, the
Legislature’s broader framework still largely frames California’s housing crisis as a failure of local
governance. This ongoing tension between state mandates and local innovation risks complicating,
rather than accelerating, the state’s long-term housing production goals.
Leadership Change Announced: In mid-June, Senator McGuire announced that Senator Monique
Limón (D-Santa Barbara) would succeed him as Senate President pro Tempore. Senator McGuire,
who had served as pro Tem since early 2024, is running for one of the newly drawn congressional
districts created by Proposition 50. Senator Limón, a former Assemblymember, was formally elected
Senate leader on September 13 and officially took office on November 17. She will lead the Senate
through the remainder of the 2025-26 session and will term out in 2028.
Late Session Gut-and-Amends: In mid-August, Governor Newsom and legislative leaders
introduced a legislative package that called for a special election to seek voter approval of
Proposition 50. Voters approved the measure, which temporarily replaces California’s existing
congressional redistricting process until the next certification in 2031. In early September, with only
days left in the legislative session, the Legislature introduced several bills to address affordability,
including gasoline and energy costs, and greenhouse gas emissions targets. The legislation included
two measures that extended the state’s Cap-and-Invest Program, which is funded by the
Greenhouse Gas Reduction Fund and overseen by the California Air Resources Board. The
legislation also allocated $1 billion annually from the Program to High-Speed Rail and an additional
$1 billion in 2026-27 for other appropriations.
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KEY PERFORMANCE INDICATORS
Our legislative advocacy for your City involves the CPPG team engaging with individual lawmakers—
both within and beyond the City’s legislative district—as well as committee staff, the Governor’s
Administration, and regulatory officials to advance the City’s policy objectives. This collaborative
approach is designed not only to move the City’s priorities forward but also to mitigate potential
legal, operational, and fiscal challenges arising from state legislation.
Effective advocacy depends on raising awareness and sharing key information about priority issues.
Empowering your City Council, staff, and advocacy team is essential to advancing your state policy
priorities. Our efforts range from collaborating with lawmakers and legislative staff to refine bill
language and offer technical amendments, to building strong coalitions that align with the City’s
goals. These efforts include educating legislators, mobilizing supporters, engaging the media, and
forging strategic partnerships—all while maintaining a clear and focused approach.
Over time, a sustained legislative advocacy effort helps your City to develop strong alliances and
enduring relationships with your allies. Working with legislators to familiarize them with your
concerns often results in lawmakers—even those outside your legislative district—becoming
champions for your specific issues. Establishing personal connections with legislators enhances
your City’s credibility, allowing for significant influence in the legislative process. While sustained
advocacy does not guarantee success on every front, a lack of engagement will lead to state policies
that undermine local decision making and introduce new legal, operational, or fiscal hurdles.
The following highlights summarize our key accomplishments for your City in 2025, demonstrating
how our efforts advanced your interests or reduced potential impacts on your agency.
Highlights: Legislative Advocacy Success
✓ SB 423 (Gonzalez) Housing: real property transfer taxes: affordability covenants (City of
Carlsbad: Oppose)
[Please note: an official position was not adopted due to time constraints.]
In the final days of the 2025 legislative session, SB 423 was “gut and amended” to include language
that would have prohibited cities from imposing a real estate transfer tax on certain newly
constructed residential and commercial properties. The proposal would have barred transfer taxes
for 15 years following the issuance of a certificate of occupancy for multifamily and commercial
developments and for five years on single-family homes rebuilt after a disaster. Another version of
the proposal extended these restrictions to document transfer taxes, posing significant fiscal
impacts for local governments statewide.
CPPG mobilized immediately, working directly with city clients to quantify potential revenue losses
and prepare city-specific impact analyses. Our team also coordinated with each city’s legislative
delegation, the League of California Cities, and external partners such as the California Professional
Firefighters, amplifying statewide opposition and elevating the issue politically.
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Our coordinated advocacy resulted in SB 423 being narrowed to apply only to the City of Los
Angeles before ultimately stalling at the end of session.
✓ AB 379 (Schultz) Crimes: prostitution (City of Carlsbad: Support)
AB 379 strengthens California’s legal framework to combat the commercial sexual exploitation of
minors and supports survivors of human trafficking. The bill expands penalties for offenders,
establishes a Survivor Support Fund, and creates new diversion opportunities for individuals
engaged in prostitution under certain conditions. This bill builds on prior reforms by balancing
accountability with rehabilitation and expanding resources for victim-centered programs statewide.
Due to significant opposition from progressive groups, the Assembly Public Safety Committee
removed the proposed felony provision for soliciting 16- and 17-year-olds in order for the bill to
advance—causing public tension. CPPG engaged with legislative staff, local governments, law
enforcement agencies, and survivor advocacy groups to ensure balanced consideration of
enforcement and implementation impacts.
CPPG monitored amendments and collaborated with public safety partners to align the bill with local
operational realities while maintaining its protective intent. The bill passed both chambers with
broad bipartisan support, reflecting consensus around the need for stronger protections and
survivor resources.
After a series of amendments, AB 379 was signed into law by Governor Newsom on July 30
(Chapter 82, Statutes of 2025).
✓ AB 1337 (Ward) Information Practices Act of 1977 (City of Carlsbad: Oppose)
AB 1337 sought to expand the Information Practices Act of 1977 to include all local agencies—cities,
counties, schools, and special districts—removing their long-standing exemption from the Act. The
proposal would have imposed sweeping new data collection and disclosure mandates on local
governments, conflicting with existing privacy laws and creating significant operational, fiscal, and
legal challenges for city staff.
Acting on behalf of the City of Carlsbad, CPPG provided a detailed legislative analysis outlining the
bill’s fiscal and administrative impacts, convened a multi-association coalition to strengthen local
government opposition, and worked directly with the Senate Judiciary Committee to convey city-
specific concerns about implementation feasibility and unfunded mandates.
As a result of this collective effort, AB 1337 did not advance from the Senate Judiciary
Committee, halting its progress in 2025 and marking a significant success for local
governments by preserving existing local data governance practices.
✓ SB 315 (Grayson) Quimby Act (City of Carlsbad: Oppose)
SB 315 proposed sweeping changes to the Quimby Act, including capping parkland dedications at
25% for infill projects and prohibiting Quimby fees within a half-mile of existing parks—undermining
the ability of local governments to secure resources for park infrastructure in growing communities.
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On behalf of the City of Carlsbad, CPPG led an aggressive, multi-pronged advocacy campaign to
defeat the bill. We developed and mobilized a broad, statewide coalition that included local
governments, environmental advocates, planning professionals, and equity-focused organizations.
We made the case that SB 315 would significantly harm community health, reduce access to green
space, and compromise local fiscal stability—especially in rapidly growing or historically
underserved areas.
CPPG worked hand-in-hand with the Senate Local Government Committee and engaged directly
with individual legislative offices to walk through the bill’s consequences in real-world terms. Our
team’s work helped shift the narrative, dispel misconceptions, and build meaningful legislative
resistance. The result was the preservation of a critical funding and planning tool for local agencies.
As a direct result of our efforts, SB 315 was held in the Senate Local Government Committee,
halting its progress in 2025.
✓ SB 346 (Durazo) Local agencies: transient occupancy taxes: short-term rental facilitator
(City of Carlsbad: Support)
SB 346 authorizes local agencies (e.g., cities) to enact an ordinance to require a short-term rental
facilitator to report the physical address of each short-term rental. The bill also authorizes a local
agency to request additional information when the physical address is not sufficient for the local
agency to identify a specific short-term rental. The bill authorizes local agencies to impose an
administrative fine or penalty for failure to file the report and authorizes the local agency to initiate
an audit of a short-term rental facilitator.
SB 346 is permissive, not a new mandate. The lack of licensing from 25% to 75% of short-term rentals
results in uncollected taxes, causing local governments to lose money and exacerbating housing
shortages and rising rent levels. CPPG engaged with the broader local government advocacy
community—including the League of California Cities, the Urban Counties of California, the Rural
County Representatives of California, among others—to create a robust support coalition to
educate the legislature on specific impacts to local agencies and encourage passage.
On October 13, SB 346 was signed into law by Governor Newsom (Chapter 751, Statutes of
2025).
✓ SB 677 (Wiener) Housing development: streamlined approvals (City of Carlsbad: Oppose)
SB 677 sought to make sweeping changes to SB 9 (Atkins, 2021) and SB 35 (Wiener, 2017), expanding
state authority over local land use and weakening long-standing local discretion. The bill would have
ministerially authorized up to four housing units on a single-family parcel—and as many as six or
more units on certain subdivided or multifamily parcels—without local review or affordability
requirements, representing a substantial power shift from local agencies to private developers. It
also would have eliminated impact fees for SB 9 units under 1,750 square feet, shifting infrastructure
and service costs from developers to cities.
CPPG worked directly with the City of Carlsbad to evaluate fiscal and operational impacts, preparing
detailed analyses of lost revenue and the challenges cities would face in providing essential services
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under these provisions. Our team also worked proactively with the Senate Housing Committee chair
and staff to emphasize the bill’s far-reaching implications and its erosion of local planning authority.
Following sustained advocacy by CPPG and local government stakeholders, SB 677 failed to
advance out of the Senate Housing Committee, halting the proposal for 2025 and preserving local
discretion over housing and infrastructure planning.
On April 23, SB 677 failed to garner enough support and failed in the Senate Housing Committee,
halting its progress in 2025.
❖ AB 253 (Ward) California Residential Private Permitting Review Act: residential building
permits (City of Carlsbad: Oppose)
AB 253 allows applicants to hire licensed private professionals—such as certified engineers or
architects—to conduct plan checks for certain residential permits when local building departments
cannot complete reviews within 30 business days.
CPPG worked with local government advocates and met with the author’s office to express concerns
about safety, liability, and oversight of state mandates. The bill was amended to limit local
government liability and ensure that local governments will retain final authority to approve or deny
permits to ensure compliance with California’s building standards.
On October 10, AB 253 was signed into law by Governor Newsom (Chapter 487, Statutes of
2025).
❖ SB 79 (Wiener) Housing development: transit-oriented development (City of Carlsbad:
Oppose)
SB 79 establishes statewide standards for housing development within one-half mile of major transit
stops, making qualifying “transit-oriented housing developments” an allowed use regardless of local
zoning restrictions. It overrides local government planning authority by setting minimum height,
density, and floor area ratios that cities and counties cannot reduce, and by deeming compliant
projects automatically consistent with local plans under the Housing Accountability Act. This
centralizes land-use control for transit-adjacent areas, limiting local discretion and presuming local
denials unlawful in high-resource areas beginning January 1, 2027. SB 79 reappropriates local land
use authority to transit agencies despite local governments investing heavily in planning through the
state mandated housing element process that prioritize public participation.
Immediately upon introduction, CPPG worked with advocates in the broader local government
advocacy community—including the League of California Cities, among others—to create a robust
opposition coalition to educate the Legislature on specific impacts to local agencies.
As a direct result of our efforts with a coalition of stakeholders, SB 79 was substantially amended
prior to making its way to Governor Newsom to create exemptions for sites in high fire hazard zones,
sites vulnerable to sea level rise, and sites with historic resources. CPPG set up and attended a
series of meetings in Sacramento with Councilmember Burkholder educating lawmakers on how SB
79 would impact the City of Carlsbad and unattended consequences.
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While we continued to advocate for a veto, the bill’s impact was reduced through a series of
negotiated amendments. On October 10, a significantly amended version of SB 79 was signed
into law by Governor Newsom (Chapter 512, Statutes of 2025).
❖ SB 358 (Becker) Mitigation Fee Act: mitigating vehicular traffic impacts (City of Carlsbad:
Oppose)
As introduced, SB 358 required a blanket 50% reduction in local vehicle mitigation fees for transit-
oriented developments, prompting opposition from cities concerned about the fiscal and
operational impacts of a one-size-fits-all mandate. CPPG engaged early with the author’s office and
worked closely with the both the Senate and Assembly Local Government Committees to secure
amendments that shifted the bill to a trip-generation-based framework, allowing local governments
to use their existing nexus and VMT data to determine fee reductions. Additional amendments
established amenity-based eligibility, requiring projects to be within one-half mile of at least three
qualifying destinations—such as grocery stores, parks, restaurants, or schools—to ensure
reductions are limited to genuinely transit-oriented areas. These revisions considerably reduced
fiscal and operational impacts.
On October 10, Governor Newsom signed a significantly amended version of SB 358 into law
(Chapter 515, Statutes of 2025).
❖ SB 707 (Durazo) Open meetings: meeting and teleconference requirements (City of
Carlsbad: Oppose Unless Amended)
Upon introduction, SB 707 proposed sweeping changes to California’s Brown Act, dramatically
broadening the definition of “legislative bodies” and imposing a series of costly new mandates on
local agencies. As introduced, the bill would have required all legislative bodies to:
• Provide opportunities for remote public participation;
• Translate meeting agendas into multiple languages using human translators;
• Offer live interpretation services during meetings;
• Provide physical public access to computers during meetings;
• Require all employment matters discussed in closed session to be publicly disclosed;
• Obtain a four-fifths vote for any closed-session action or to conduct a special meeting.
Recognizing the significant fiscal and operational impacts, CPPG immediately engaged alongside a
broad coalition of local government stakeholders to oppose the measure. As chair of the Senate
Local Government Committee, Senator Durazo later merged four separate—largely favorable—
Brown Act-related proposals into SB 707, creating a challenging dynamic in which local agencies
supported certain provisions while strongly opposing others.
Throughout the spring, CPPG played a central role in negotiations, working closely with committee
staff, the author’s office, key legislators, and other stakeholders to secure substantial amendments
that removed or narrowed nearly all of the bill’s most burdensome provisions. These changes
significantly reduced the measure’s fiscal and operational impacts while introducing new flexibility
for legislative bodies subject to the Brown Act. However, the combining of measures effectively split
the local government coalition, with three statewide local government organizations shifting their
position to support the bill and another moving to neutral.
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Despite these improvements, several problematic provisions remained. In the final month of the
legislative session—with a fractured local government coalition, CPPG directly led the opposition
coalition, meeting with virtually every member of the Assembly to urge rejection of the bill. As the
session drew to a close, CPPG successfully led efforts to have SB 707 placed on the Inactive File on
September 11, effectively stalling it for the year. However, due to commitments Senator Durazo had
made to the authors of the consolidated measures, the bill was pulled from the Inactive File in the
final hours of session and passed both houses on September 13.
While disappointing that the bill ultimately advanced, CPPG’s advocacy directly resulted in major
amendments that dramatically mitigated local agency impacts and preserved greater flexibility
within open meeting requirements.
On October 3, Governor Newsom signed a significantly amended version of SB 707 into law
(Chapter 327, Statutes of 2025).
Summary of Advocacy Deliverables
At CPPG, our commitment extends far beyond traditional state legislative advocacy—it’s a year-
round partnership dedicated to serving the City of Carlsbad in every capacity possible. We tackle
local challenges that intersect with state interests, collaborate with City staff on innovative policies,
and deliver educational resources that enhance the Council’s and staff’s understanding of critical
issues.
In advocating for your City, consistent communication with your staff and Council is a top priority for
our team. Keeping you well-informed supports our ability to effectively and successfully represent
your interests. To this end, we provide memos tailored to your City that include specific analyses of
legislation and regulatory matters, and updates on the legislative process, as needed. In 2025, CPPG
sent your team 31 memos with analyses or updates that illustrated City-specific impacts and/or
potential funding sources for the City. These memos kept you informed about specific legislation
and policies of potential interest to your City, especially those that may impact your City’s
operations, authority, or decision making.
We kept you updated on important developments in the Capitol through regularly scheduled Zoom
meetings. These check-in meetings served as essential touchpoints, framing the continuous and
often daily dialogue we maintained with City staff through calls, texts, and emails. Additionally, we
held presentations for your staff and Council whenever necessary, providing insights on legislative
developments and highlighting the City’s active participation in the legislative process. This
consistent exchange of information ensured that everyone stayed aligned and informed as we
navigated the complexities of governance together.
Each month, CPPG supplied your City with a legislative summary that highlighted key developments
in the Legislature and updates on legislation, along with announcements from the Administration,
all of which were tailored to your City’s specific interests. Additionally, our Monthly Activity Reports
meticulously documented every touchpoint CPPG had with and on behalf of the City.
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Updates on Legislative and Regulatory Processes, and Detailed Legislative Analyses: CPPG
provided the City with several detailed analyses of pieces of legislation. These analyses were critical
in helping the City assess pending legislation’s potential implications for operations, local
discretion, and/or authority. CPPG also provided timely informational reports during critical stages
of the budget and policy processes and followed up to answer any questions and close the loop.
These updates provided your City with the necessary situational awareness of statewide trends and
of regulatory, fiscal, and legislative developments. Examples of these reports include but are not
limited to:
• Analysis of AB 1337 (Ward)
• Analyses of SB 79 (Wiener) [Chapter 512, Statutes of 2025]
• Analysis of SB 677 (Wiener)
• Analysis of SB 681 (Wahab)
• Advanced Clean Fleets regulations
• Organizational Session
• California Environmental Quality Act (CEQA) Bills
• Homeless funding accountability
• Howard Jarvis initiative
• National Pollution Discharge Elimination Systems (NPDES)
• Budget updates: January proposal, May revision, and June final
• Housing package budget trailer bills
• Appropriations Suspense Files
• End of session
LOOKING AHEAD
Local Government Revenue
California continues to face a structural deficit, compounded by growing uncertainty around federal
health care policy. The Legislative Analyst’s Office (LAO)—the Legislature’s nonpartisan research
and advisory division—recently warned that new federal actions reducing Medi-Cal reimbursements
and provider tax revenues could cost the state’s General Fund billions of dollars annually. These
losses—combined with lower federal participation and higher county administrative burdens—will
likely intensify pressure on state finances and heighten the risk of future cost shifts to local
governments.
In lean fiscal years, both the Administration and the Legislature have historically viewed local
revenue sources as soft targets for backfilling state shortfalls. As the state contends with federal
retrenchment in Medi-Cal and other programs, legislation in 2026 is likely to push additional costs,
enforcement duties, and programmatic responsibilities onto local agencies.
In one of its earlier forms, SB 423 (Gonzalez) proposed a cap on local document transfer fees—a
measure with significant implications for municipal revenue stability. While the bill was ultimately
narrowed to apply solely to Los Angeles and stalled in committee, it reflected a broader trend of
proposals seeking to limit local fiscal authority. Similar statewide measures affecting multiple
jurisdictions are expected to reemerge in 2026.
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Additionally, development impact fees, Quimby fees, and other local cost-recovery mechanisms
may once again be targeted as part of broader efforts to “reduce barriers” to housing and economic
development. Restricting or eliminating these local funding tools would undermine the ability of
local governments to maintain infrastructure, parks, affordable housing programs, and essential
public services.
As the fiscal and policy landscape continues to evolve, local governments must remain vigilant in
safeguarding existing revenue streams and defending against legislation that creates new unfunded
mandates. Ensuring that local governments retain the authority and resources necessary to meet
community needs will be a central advocacy priority heading into the 2026 legislative session.
Housing and Land Use
Continuing a trend of recent years, the 2025 legislative session saw the introduction of hundreds of
housing-related measures, exceeding the volume introduced in prior years. In an unprecedented
move, about 300 pages of statutory changes were enacted through the 2025-26 state budget. The
pace of housing legislation is expected to remain intense in 2026. Anticipated trends include
proposals to increase densities and building heights around transit corridors, expand zoning reforms
to promote infill development, and impose new or expanded planning and reporting requirements.
Lawmakers are also likely to pursue further changes to accessory dwelling unit and duplex laws, as
well as adjustments to the Davis-Stirling Act aimed at limiting common-interest development
restrictions.
Recent state housing measures have increasingly shifted costs and responsibilities onto local
governments while limiting their discretion in land use planning. These policies often overlook the
broader factors contributing to California’s housing crisis, including construction labor shortages,
financing constraints, rising materials costs, and speculative ownership of existing housing stock.
Despite these challenges, cities and counties continue to demonstrate leadership by approving and
entitling housing projects at significant levels. Local governments remain committed partners in
addressing the state’s housing needs; however, mandates imposed without corresponding
resources or flexibility risk undermining sustainable, long-term progress.
California Environmental Quality Act Clean Up
Significant reforms to the California Environmental Quality Act (CEQA) were enacted in 2025 through
the state budget process—marking the most substantial changes to the law in decades. Despite the
scale of that reform package, several issues remain unresolved. Some legislators who reluctantly
supported the 2025 reforms have signaled their intent to pursue further “clean-up” legislation,
focusing on concerns such as more prescriptive requirements for tribal consultation and
clarification of the definition of “advanced manufacturing.” Additional CEQA-related bills may
therefore emerge in 2026 to address these outstanding matters. Although many of these proposals
are framed as technical adjustments, they carry the potential to introduce new mandates or increase
litigation risks for local governments. Because cities and counties serve as the primary
implementers of CEQA, it will be critical that any reforms remain both workable and adequately
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resourced—in order to maintain environmental protections while supporting responsible and
sustainable development.
Advanced Manufacturing: The 2025 CEQA reforms exempt nine project types from environmental
review, including “advanced manufacturing,” defined broadly to encompass big tech,
semiconductors, aerospace, and electronics industries. Stakeholders have raised concerns—
especially labor and environmental groups—that the definition is overly expansive and could erode
environmental or community protections unless narrowly tailored and clearly defined.
Tribal Consultations: Under current law, local governments must offer consultation within 14 days
and allow a 60-day period for consultation to conclude. Local officials continue to seek clearer
guidance on those timelines; tribal and indigenous organizations, conversely, are advocating for
more time and meaningful engagement to ensure consultation is substantive.
Endangered Species Act: With the passage of SB 131 and AB 130 (both chaptered June 30, 2025),
the definition of “natural and protected lands” was narrowed, prompting stakeholders to demand
clarification that this change does not weaken conservation protections for critical species habitat.
Ballot Measure & Legislative Implications: In addition to statutory reforms, a proposed statewide
ballot initiative titled the “Building an Affordable California Act”—filed by the California Chamber of
Commerce and expected to appear on the November 3, 2026 ballot if qualified—seeks to further
redefine the CEQA review process. The measure would establish strict deadlines for lead agencies
(e.g., 365 days for EIRs, 180 days for Negative Declarations) and impose accelerated judicial-review
timelines under a “substantial evidence” standard rather than “prejudicial abuse of discretion.”
Because the ballot initiative could drastically shift how CEQA is implemented statewide, it may in
turn influence the Legislature’s approach to any follow-up statutory changes. In practical terms,
local governments should anticipate that reforms in 2026 may come not only through bills but also
through the interplay of voter-driven mandates and legislative reactions. This means advocates
should maintain a dual focus: (1) refining the technical statutory language governing CEQA
implementation, and (2) monitoring how ballot measure outcomes could prompt additional
legislative or budgetary changes.
Election Year Politics
Political Climate: With the upcoming national midterm elections, California’s political environment
is expected to become increasingly charged and unpredictable. Voters will choose a new Governor
on November 3, 2026, marking the end of Governor Newsom’s tenure as he positions himself for a
likely presidential run. In the lead-up, the Administration is expected to double down on policies that
contrast sharply with those of the Trump Administration—particularly around climate action,
healthcare access, and housing production.
Election years often amplify high-profile policy debates, and 2026 will be no exception. The Governor
and legislative leaders will be eager to showcase tangible progress on housing, homelessness, and
cost-of-living issues—areas where public frustration remains high. We can expect an increased
emphasis on high-visibility housing enforcement measures, streamlined development proposals,
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and budget initiatives designed to demonstrate fiscal responsibility while maintaining progressive
priorities.
Public safety will also remain a central political issue, as lawmakers seek to balance community
concerns over rising property crime and retail theft with ongoing efforts to reform the criminal justice
system. One area that we are focusing on is the ongoing funding for Proposition 36. Despite the
overwhelming voter approval rating, the Administration and the Legislature only allocated $100
million in this year’s budget for implementation. Next year could see a refocus on additional funding
for the measure.
The combination of federal-state political tension, economic uncertainty, and leadership transitions
will make 2026 a uniquely volatile year in Sacramento—one where policy outcomes are increasingly
shaped by electoral dynamics as much as by sound governance.
Governmental Operations Measures: Even-numbered years traditionally bring a wave of labor-
sponsored legislation. While often directed at large corporations, many of these proposals extend to
the public sector—adding costs, compliance obligations, and new restrictions on local discretion.
Measures that limit a local agency’s ability to contract for specialized or temporary services,
increase employer costs, or undermine the collective bargaining process are expected to resurface
in 2026.
Growing concern over the public-sector use of artificial intelligence (AI) is also expected to drive new
legislation in 2026. Labor organizations view AI as a potential threat to public-sector jobs, while
privacy and community advocates are focused on data protection, algorithmic bias, and the
preservation of human oversight. Together, these interests are likely to fuel a broad push for
regulation. Anticipated proposals may require agencies to disclose AI use in decision-making, hiring,
procurement, or public safety operations; conduct bias and privacy assessments; or establish
internal AI governance frameworks. While intended to enhance transparency and accountability,
these measures could impose significant new reporting and compliance burdens—particularly for
smaller agencies with limited technical capacity.
Similarly, “transparency” and “good governance” reforms are expected to return in 2026. This year’s
SB 707 (Durazo) [Chapter 327, Statutes of 2025] enacted one of the most complex revisions to the
Ralph M. Brown Act in decades, creating new requirements for remote participation, agenda posting,
and language access. While the bill’s intent was to enhance public participation, its implementation
has already proved to be administratively burdensome for local agencies. Following pushback from
community groups who argued the bill did not go far enough, Senator Durazo has signaled plans to
expand translation, accessibility, and recordkeeping requirements in the upcoming session.
Grant Funding
Prepared by: Jake Whitaker, Director of Grant Services
After a tumultuous year with major changes in the landscape of federal funding, many municipalities
have started to pivot away from pursuing federal grant opportunities due to new requirements
included in grant award agreements prohibiting diversity, equity, and inclusion (DEI) practices and
requiring cooperation with federal immigration enforcement efforts. However, the state of California
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faces a multi-year structural deficit, limits the state’s ability to backfill the loss of federal funding
opportunities across the multitude of impacted areas, including transportation, clean energy
adoption, and public safety.
Funding through Proposition 4, colloquially known as the “Climate Bond,” is currently being rolled
out and represents the most immediate opportunity for municipalities to apply for discretionary
grant funding. Due to the legislature’s failure to include an exemption to the Administrative
Procedures Act (APA) for Climate Bond programs, the grant funding solicitations must follow the full
administrative approval process which has contributed to a delay of approximately six months.
Some early appropriations made in January 2025 are currently going through public comment on the
draft grant program guidelines, while other Climate Bond programs appropriated at the end of
session in September 2025 are just now undertaking the APA approval process. The FY 25-26 budget
appropriated $3.3 billion of the total $10 billion in spending authorized by the Climate Bond. While
these funding opportunities are a welcome reprieve, grant funding is anticipated to be highly
competitive with increased demand and the structure of the Climate Bond itself spreads these
dollars across many different areas of investment—making this a wide yet shallow pool of funding.
Transportation
• Cycle 8 of the California Transportation Commission (CTC)’s Active Transportation Program
is anticipated to be released in March 2026. The goals of the program are to increase biking
and walking trips, increase the safety and mobility of non-motorized users, advance efforts
of regional agencies, and enhance public health.
• The CTC has announced the Local Partnership Program for another round of funding. This
program provides funding to projects where voters have approved fees or taxes dedicated
solely to transportation improvements or that have imposed fees. Eligible activities include
projects that address aging infrastructure, road conditions, active transportation, transit,
and rail. The State has appropriated $202 million for this program. Applications are
anticipated to be released around summer of next year.
• The U.S. Department of Transportation (USDOT) was planning to release a solicitation for the
Better Utilizing Investments to Leverage Development (BUILD) program in November 2025
(potentially delayed due to the prolonged government shutdown). Funding can be used for
surface transportation infrastructure projects with significant local or regional impact.
• The USDOT is currently reviewing the Bridge Investment Program (BIP), which has one
remaining fiscal year of funding appropriated by the IIJA. BIP focuses on projects that address
existing bridges that are either in poor condition or at-risk of falling into poor condition. The
timeline for the re-release of the BIP solicitation is currently unclear.
• The Federal Railroad Administration (FRA) is anticipated to hold competitions for the
Consolidated Rail Infrastructure and Safety Improvements (CRISI) program and Railroad
Crossing Elimination (RCE) program in 2026. These two programs are popular opportunities
for jurisdictions pursuing grade separation projects. Timelines for these competitions are
unclear. Currently, funding for FY 25 and FY 26 appropriated by the Infrastructure Investment
and Jobs Act (IIJA) have not been obligated for projects.
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Parks and Recreation
• The State has appropriated $188.5 million through the Climate Bond (Prop 4) for the
Statewide Park Development and Community Revitalization Program. The program’s intent
is to create new parks and new recreation opportunities in critically underserved
communities across California. Draft guidelines will be released soon for public comment.
The upcoming Round 5 competition, which will be held in Summer/Fall 2026, will be the only
Climate Bond-funded round of grants.
• The Art in California Parks Grant Program is anticipated to be released in Spring 2026 for
Round 3. The goal of the program is to revitalize local parks with diverse experiences that
foster creativity, community connection and transform them into hubs of art, culture, and
nature.
• The federal Outdoor Recreation Legacy Partnership (ORLP) program is currently paused for
administrative review. ORLP funds a wide variety of recreational projects and facilities, from
sports fields and playgrounds to walking trails and community gardens. The timeline for
review and resumption of grant funding competitions is currently unclear.
• The federally funded Land and Water Conservation Fund (LWCF), however, has not been
impacted by shifts in federal policy or administrative procedures. LWCF dollars are managed
and awarded by the State as a federal pass-through grant. The LWCF provides matching
grants to local governments for outdoor recreation projects. Grant competitions are typically
held annually. The California State Parks Office of Grants and Local Assistance (OGALS)
notes that the next LWCF competition is “coming soon.”
• The California State Parks Office of Grants and Local Services (OGALS) had a public
comment period for the Recreational Trails Program (RTP) Non-Motorized this summer and
are working on revisions of the guidelines. The next application cycle is anticipated to be
released in 2026 or 2027.
• OGALS also had a public comment period for the Habitat Conservation Fund this spring and
are working on revising the guidelines. The next application cycle is anticipated to be
released in 2026 or 2027. This program funds projects for nature interpretation programs to
bring urban residents into park and wildlife areas, protection of various plant and animal
species, and acquisition and development of wildlife corridors and trails.
Water Quality and Conservation
• The Bureau of Reclamation has stated that several WaterSMART funding opportunities were
planned to be launched in Fall 2025 prior to the government shutdown: Small-Scale Water
Efficiency Program, Water and Energy Efficiency Grants, and Drought Resiliency Projects.
• The State Water Resources Control Board accepts applications for the Clean Water State
Revolving Fund and Drinking Water State Revolving Fund on a rolling basis. The annual
Intended Use Plan drafts are published in November/December of each year. The RLF
programs are funded through a combination of annual state and federal investments.
However, available funding is expected to tighten in the coming years with the expiration of
IIJA supplemental federal funding.
• The State Water Resources Control Board is currently accepting applications for the Water
Recycling Planning Grant. Applications are accepted on an ongoing basis until 6/30/2027.
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Projects can include recycled water treatment, recycled water storage, distribution, and
pumping, and groundwater recharge.
Economic Development
• The Economic Development Administration has announced the Disaster Supplemental
Grant Program for areas that received major disaster declarations because of hurricanes,
wildfires, severe storms and flooding, tornadoes, or other natural disasters in 2023-2024.
The program provides funding to support economic recovery in these affected areas.
Applications are accepted on a rolling basis for Readiness and Implementation projects until
funds are exhausted. For the Industry Transformation Path, applications are due 3/3/2026.
Housing Construction
• The California Department of Housing and Community Development (CalHCD) has
appropriated $120 million for FY 25-26 for the Multifamily Housing Program. The program
funds projects for new construction or rehabilitation of existing housing development, as
well as the conversion of nonresidential structures into residential structures. Funding is
anticipated to be released in 2026.
• The Strategic Growth Council’s Affordable Housing Sustainable Communities receives a
continuous annual appropriation from Cap-and-Invest Greenhouse Gas Reduction Fund.
This program provides funds for projects that achieve GHG reductions and benefit
communities through accessibility of affordable housing, employment centers, and key
destinations via low-carbon transportation. Guidelines are anticipated to be released early
2026.
• The legislature appropriated an additional $100 million for the Encampment Resolution
Funding (ERF) program for FY 25-26. However, this funding will be used for “look back”
awards for unfunded projects from the ERF Round 3 competition. CPPG does not anticipate
a Round 4 ERF competition in 2026.
Sustainability, Resilience, and Climate Action
• The Strategic Growth Council has released the draft guidelines for Round 6 of the
Transformative Climate Communities Program. This program provides funds for community-
led development and infrastructure projects that achieve major environmental, health, and
economic benefits. The State has appropriated $100 million from the Climate Bond for this
program. Draft guidelines are currently open for public comment until 1/2/2026.
• The Strategic Growth Council has released the draft guidelines for Round 2 of the Community
Resilience Center Program. This program provides funds for development and
implementation of community resilience centers that mitigate the public health impacts of
extreme heat and other emergency situations. The State has appropriated $55 million from
the Climate Bond for this program. Draft guidelines are currently open for public comment
until 1/2/2026.
• The Extreme Heat and Community Resilience Program has announced a second round of
funding. The Climate Bond appropriated $22 million for FY 25-26. Funding will be used for
planning projects that combine community services and physical improvements to protect
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communities from extreme heat. The RFP and Pre-Application Interest Form are anticipated
to be released early 2026.
• The Climate Bond appropriated $46 million for the Urban Greening Program in FY 25-26. This
program funds projects that result in the conversion of existing built environments into green
space and green infrastructure. NOFOs are anticipated in early 2026.
• The Coastal Conservancy has received Climate Bond funding appropriations of $62 million
in FY 25-26 for coastal resilience projects and $32.5 million in FY 25-26 for sea level rise
adaptation projects. Proposals are being accepted through the Coastal Conservancy Grants
rolling application process.
• The EPA’s Brownfield Assessment and Cleanup Grants were anticipated to be released
November 2025, but were delayed due to shutdown. These grants provide funds to conduct
planning activities, develop cleanup plans, and implement cleanup activities for brownfield
sites. It is currently unknown when the NOFOs will be released, but applications are
expected to be due 60 days after solicitations are released.
Fire and Emergency Response
• FEMA’s Assistance to Firefighters Grant (AFG) is anticipated to be released Winter 25/26. This
program funds equipment, protective gear, emergency vehicles, training, and other
necessary resources for protecting the public and emergency personnel.
• The Staffing for Adequate Fire and Emergency Response (SAFER) Grant is anticipated to
come out Winter 25/26. The SAFER Grant is designed to directly fund fire departments or
volunteer firefighter organizations to help increase or maintain the number of trained
firefighters.
• The Fire Prevention and Safety (FP&S) is anticipated to release solicitations Winter 25/26.
The goal of this program is to reduce injury and prevent death through fire prevention
programs and firefighter health and safety research and development.
• Future funding remains uncertain for FEMA’s Pre-Disaster Mitigation programs, which
include the Hazard Mitigation Grant Program (HMGP), Flood Mitigation Assistance (FMA),
and Building Resilient Infrastructure and Communities (BRIC). These programs fund a wide
variety of mitigation activities, including flood protection, hazardous fuels treatment,
retrofitting structures, and supplying backup power via generators for critical facilities. Going
forward, options to fund these types of projects may be limited to the Congressional
appropriations aka “earmarks” process.
• The Community Microgrid Enablement Program through PG&E is anticipated to announce a
Third Round in 2026. This program provides funding to enable a community microgrid
through studies and equipment for a safe transition.
Public Safety
• The California Office of Traffic Safety annual OTS Grant is due January 31, 2026. This program
provides funding for a variety of priority program areas with local crash data that
demonstrates a need for funding. These priority program areas include: Alcohol Impaired
Driving, Distracted Driving, Drug-Impaired Driving, Emergency Medical Services, Motorcycle
Safety, Occupant Protection, Pedestrian and Bicycle Safety, Police Traffic Services,
Communications and Public Affairs, and Roadway Safety and Traffic Records.
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• The U.S. Department of Justice (USDOJ) is currently accepting applications for the
Bulletproof Vest Partnership (BVP), with a due date of 12/19/2025. BVP reimburses local
government agencies for up to 50% of the cost of body armor vests purchased for law
enforcement officers. These reimbursements are awarded on a competitive basis.
Libraries
• The current administration has taken action to terminate funding from the Library Services
and Technology Act (LSTA), which is passed through to the California State Library from the
federal Institute of Museum and Library Services. LSTA funds a variety of programmatic grant
programs available to local libraries from the State Library. While there are active lawsuits
challenging the administration’s actions, future funding availability remains uncertain.
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