“We’re done with barriers. Let’s get this built.”

What you need to know: Governor Newsom’s proposed budget includes proposals to streamline permitting and accelerate development  -- clearing the path for more housing and economic opportunity. 

SACRAMENTO – Governor Gavin Newsom is announcing a new legislative proposal as part of the May Budget Revision to remove regulatory barriers that have stood in the way of the state’s progress. The proposal reinforces the state’s commitment to building more homes faster, while creating greater economic stability, affordability, and opportunity for California families. It speeds up permitting timelines, removes key regulatory barriers, and introduces innovative financing tools that support infill and transit-oriented development.

The Governor is also proposing to partner with the Legislature to incorporate related measures into the budget to accelerate infill and economic development, including Assembly Bill 609 (Wicks) and Senate Bill 607 (Wiener). These measures aim to streamline CEQA to provide greater regulatory certainty and faster project delivery. 

“To meet California’s housing goals, we need certainty, accountability, and smarter land use  - not the endless regulatory delays that have held us back for decades. This proposal delivers lasting reforms to align our systems for long-term impact: more housing, stronger communities, and sustainable growth that reflects the bold, forward-thinking spirit of California. The Golden State was built on boldness and innovation, not red tape - we can’t continue to block our own economic success. We’re done with barriers. Let’s get this built.” - Governor Gavin Newsom

Removing barriers to progress

This proposal builds on Governor Newsom’s ongoing efforts to expand housing access and end the decades-long homelessness crisis - an issue that continues to impact communities across the country. Governor Newsom took on this challenge by committing to plan for more than 2.5 million homes over the current housing planning cycle, including at least one million affordable homes for lower-income households, helping to provide every Californian a place to call home. This target is more than double the number of homes planned for in the previous cycle.  

Since taking office, the Governor has championed and signed an unprecedented amount of housing legislation, including 42 housing-related CEQA reforms, stronger accountability measures, and historic levels of state support to help local governments meet their housing goals. While these foundational changes have laid the groundwork for long-term progress, decades of complex, overlapping regulations continue to slow needed housing development. 

Today, the Governor is taking the next step toward meeting California’s housing goals by targeting entrenched regulatory barriers that continue to cause costly delays. These proposals are designed to cut through bureaucracy, accelerate progress, and deliver lasting reforms that will shape a more affordable, inclusive, and resilient California for generations to come. 

More housing, faster 

The Governor’s May Revision prioritizes climate-smart housing reforms that deliver more homes, faster, in places that reduce pollution and improve quality of life. A key part of this effort is ensuring a level playing field by aligning Coastal Commission permitting timelines to those that apply to other agencies, so that communities in the Coastal Zone are not left behind when it comes to urgently needed housing. 

The May Revision also introduces an innovative financing strategy for developers that links vehicle miles traveled (VMT) reductions with infill and transit-oriented housing production, further aligning the state’s climate goals with housing needs. This proposal helps move forward the state’s commitment to faster, smarter infill development as outlined in the Governor’s July 2024 executive order. These reforms protect the environment, support working families, create good-paying jobs, and expand economic opportunity across California.

The Governor’s May Revision helps cut red tape and remove barriers, helping propel the Golden State forward by:

• Streamlining Coastal Commission permits - Creating fairer, faster housing approvals where homes are urgently needed by aligning Coastal Commission permitting timelines with those of other permitting agencies.  The proposal will increase accountability and regulatory certainty for urgently needed housing in coastal communities.
• Doubling down on smart housing policies  - Promoting infill and transit-oriented development that reduces emissions and vehicle miles traveled. 
• Unlocking economic opportunity - Advancing policies that create jobs, attract private investment, and accelerate housing and economic development. 

These proposals are intended to quickly implement and reinforce existing policy and budget investments by streamlining approvals, reducing regulatory delays, and aligning land use decisions. They build on recent administrative efforts and respond to continued legislative interest in advancing practical, lasting reforms.

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