CaliforniaSB 1312025-2026 Regular SessionSenateWALLET

Budget Act of 2025.

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 7 benefits, 0 costs, 2 mixed.

Faster housing approvals and infill mapping

Rezonings that carry out an approved housing element are exempt from CEQA. If a housing project loses an exemption only because of one rule, reviews cover only that rule’s effects. The state must map eligible urban infill sites by July 1, 2027, and update statewide infill guidelines by January 1, 2027 and at least every two years. These streamlining tools do not cover projects on natural and protected lands or projects that add large distribution centers (50,000 square feet or more) or oil and gas infrastructure.

Homelessness grants: $500 million with guardrails

Beginning July 1, 2026, the state provides $500 million for Round 7 of the Homeless Housing, Assistance, and Prevention program. Cities, counties, tribes, and continuums of care get the money. Funds are paid only after follow‑up legislation and when a jurisdiction has mostly received Round 6 payments and has obligated at least 50% of its Round 6 award. The Department of Finance can add up to $8 million to prepare, but total Round 7 administrative costs cannot exceed 5% of the Round 7 total.

Faster wildfire safety work near homes

Certain wildfire risk projects are exempt from CEQA if they follow design, size, and mitigation rules. Examples include prescribed burns or fuel reduction up to 50 acres near some subdivisions; roadway clearance up to 100 feet along key evacuation routes; home hardening or defensible space within 200 feet of structures in high hazard zones; and fuel breaks up to 200 feet that remove small trees (under 12 inches). Projects must still follow other laws and cannot be on protected lands.

Faster broadband build-outs along roads

Linear broadband projects within 30 feet of a public road right‑of‑way are exempt from CEQA when installed underground with surface restoration or run aerially on existing utility poles. Projects must protect cultural and biological resources, follow other laws, notify public agencies, give public notice, and get permission for private rights‑of‑way.

Quicker permits for parks, clinics, child care

Park and nonmotorized trail projects funded by the 2024 Bond Act are exempt from CEQA. The law also exempts certain community facilities that meet strict limits: a day care center not in a residential area; a rural clinic or FQHC under 50,000 square feet; a nonprofit food bank on industrial‑zoned land; and advanced manufacturing on industrial‑zoned land. These exemptions do not apply on natural and protected lands, and all other laws still apply.

Faster approvals for farmworker housing

New agricultural worker housing is exempt from CEQA when it meets state health and safety rules and is funded or owned by public or nonprofit programs, such as the Joe Serna, Jr. program, the Office of Migrant Services, or a local government. Projects that only repair or maintain existing farmworker housing are also exempt.

Quicker small water projects, worker pay rules

Many small or disadvantaged community water projects can skip full CEQA if they meet safety and location limits and mainly benefit small systems. Some non‑construction water system projects funded by the 2024 Bond Act or the SAFER program are also exempt until January 1, 2030. Before using the small‑system exemption, the lead agency must check with the State Water Resources Control Board about federal funding effects. Contractors on public projects must use a skilled, trained workforce. Private applicants must pay at least the prevailing wage or certify public‑work status, use a skilled workforce, and file monthly reports; missing reports can cost $10,000 per month, and contractor noncompliance can cost $200 per day. The small‑water‑system exemption ends January 1, 2032.

Faster CEQA lawsuits and plan updates

In CEQA lawsuits, plaintiffs must request the record when they file. Agencies must prepare and certify the record within 60 days and file it electronically, and courts hold a case‑management meeting within 30 days. The law details record contents and remedies if deadlines are missed. The Natural Resources Agency can update the statewide climate adaptation plan without CEQA review when using its plan authority.

Streamlined upkeep for high-speed rail

Certain heavy maintenance facilities and related station changes for electric high‑speed rail are exempt from CEQA when a prior project‑level EIR covered them, they adopt required mitigations, and they are within one mile of approved right‑of‑way. These exemptions do not apply on protected lands.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 171 • No: 34

House vote 6/30/2025

Item 1000 — Assembly AFLOOR

Yes: 55 • No: 3

House vote 6/30/2025

Item 1000 — Assembly AFLOOR

Yes: 55 • No: 20

Senate vote 6/30/2025

Item 96 — Senate SFLOOR

Yes: 33 • No: 1

Senate vote 3/20/2025

Item 65 — Senate SFLOOR

Yes: 28 • No: 10

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 24, Statutes of 2025.

    6/30/2025Senate
  2. Approved by the Governor.

    6/30/2025legislature
  3. Enrolled and presented to the Governor at 6:45 p.m.

    6/30/2025legislature
  4. Assembly amendments concurred in. (Ayes 33. Noes 1. Page 1844.) Ordered to engrossing and enrolling.

    6/30/2025Senate
  5. In Senate. Concurrence in Assembly amendments pending.

    6/30/2025Senate
  6. Read third time. Passed. (Ayes 55. Noes 3. Page 2362.) Ordered to the Senate.

    6/30/2025House
  7. Amendments by Assembly Member Jeff Gonzalez tabled on motion by Assembly Member Aguiar-Curry. (Ayes 55. Noes 20. Page 2361.)

    6/30/2025House
  8. Assembly Rule 63 suspended. (Ayes 56. Noes 18. Page 2359.)

    6/30/2025House
  9. Ordered to third reading.

    6/30/2025House
  10. Withdrawn from committee pursuant to Assembly Rule 96.

    6/30/2025House
  11. From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

    6/27/2025House
  12. Referred to Com. on BUDGET.

    3/24/2025House
  13. In Assembly. Read first time. Held at Desk.

    3/20/2025House
  14. Read third time. Passed. (Ayes 28. Noes 10. Page 440.) Ordered to the Assembly.

    3/20/2025Senate
  15. Read second time. Ordered to third reading.

    3/18/2025Senate
  16. Ordered to second reading.

    3/17/2025Senate
  17. Withdrawn from committee. (Ayes 27. Noes 10. Page 384.)

    3/17/2025Senate
  18. Referred to Com. on B. & F. R.

    2/5/2025Senate
  19. From printer. May be acted upon on or after February 23.

    1/24/2025Senate
  20. Introduced. Read first time. To Com. on RLS. for assignment. To print.

    1/23/2025Senate

Bill Text

  • Chaptered

    6/30/2025

  • Enrolled

    6/30/2025

  • Amended Assembly

    6/27/2025

  • Introduced

    1/23/2025

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