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CaliforniaSB 1582025-2026 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: 5 benefits, 1 costs, 3 mixed.

Faster CEQA path for infill homes

The law exempts many infill housing projects from CEQA if they meet strict rules. Key rules include site size (usually 20 acres or less, and 4 acres for some cases), an urban location, consistency with the local plan and zoning, at least half of the allowed density, and no demolition of a listed historic building. For applications deemed complete on or after January 1, 2025, the project cannot include transient lodging. If a project would lose an exemption for only one issue, review is limited to that single issue. Agencies must offer a pre‑application meeting on request and must file a public notice when they approve an exempt project.

New homelessness grants start 2026

The law creates Round 7 of homeless housing and prevention grants with $500 million starting July 1, 2026. HCD prepares in 2025–26 so first payments can begin by September 1, 2026. Money is allocated only after separate legislation confirms the use and after HCD has mostly finished Round 6 disbursements and a grantee has obligated at least 50% of its Round 6 award. The Department of Finance may add $8,000,000 for implementation and must notify the Legislature within 10 days. Administrative costs are capped at 5% of Round 7, and any added implementation funds count toward that cap.

Faster approvals for farmworker housing

New farmworker housing is exempt from CEQA if it meets listed health and safety rules and is funded by named public programs or by public or nonprofit entities. Repairs or maintenance of existing farmworker housing are also exempt. This speeds affordable housing for agricultural workers.

Faster local yes/no on housing

The law sets firm approval deadlines for development projects. Agencies must act within 180 days after an EIR, 90 days in some cases, and 60 days in others, including after a negative declaration, a CEQA exemption, or for ministerial reviews. Projects with at least 49% long‑term affordable units and financing notice must get a decision within 60 days of EIR certification. A 'development project' now also includes housing that needs a ministerial or discretionary entitlement, but not post‑entitlement permits. Applicants and agencies can agree in writing to extend these deadlines.

Tighter, public annual housing reports

Cities and counties must file a general plan and housing report by April 1 each year to the local body, GO‑LUCI, and HCD. Reports use HCD forms and must show RHNA progress (including extremely low income), program progress with a public meeting, application counts and whether ministerial or discretionary, total units in applications, approvals and denials by income and opportunity area, and rezoned sites by income. They must list demolitions, new units by AMI and tenure with parcel IDs, density bonus activity (including lower‑income student housing), and outcomes for streamlined projects under Sections 65913.4, 65913.16, and Chapter 4.1. HCD can seek corrections within 90 days; agencies have 30 days to fix or HCD may reject. HCD posts reports online, and 'opportunity area' must follow the latest CTCAC/HCD Opportunity Map. The law also gives GO‑LUCI $2,106,000, available to spend through June 30, 2026 (liquidation through June 30, 2028), to support implementation.

Sensitive sites face full review

Some housing projects do not qualify for the exemption and must go through discretionary CEQA review. This includes projects in narrow 2020 Census population bands, parcels with freshwater forested or shrub wetlands, parcels inside a regulatory floodway, or sites next to a registered California historic landmark. The law also expands which lands count as protected, like state and national parks, marine areas, wild and scenic rivers, wetlands within 300 feet, very high fire hazard zones without adopted mitigations, and prime farmland.

Health rules for homes near hazards

Exempt housing must complete a Phase I environmental study. If hazards are found, the developer must do more testing and clean up or mitigate to state and federal standards before people move in. Housing within 500 feet of a freeway must use central HVAC, face air intakes away from the freeway, use MERV‑16 filters, and avoid balconies facing the freeway. These steps improve indoor air quality but add building and operating costs.

Prevailing wages on 100% affordable builds

Projects that are 100% for lower‑income households must pay construction workers the local prevailing wage. Approved apprentices must be paid the apprentice prevailing rate. Extra labor standards apply to buildings over 85 feet and to some 50‑plus‑unit projects in San Francisco. The law also authorizes legal tools for a joint labor‑management committee to enforce wage rules.

Stronger tribal consultation on projects

Local governments must notify affiliated California Native American tribes within 14 days after an application is complete. Tribes have 60 days to request consultation. If requested, the city or county must start within 14 days and finish within 45 days, with one 15‑day extension allowed. Any enforceable agreement from consultation becomes a binding project condition, including paid tribal monitoring, avoiding cultural resources where feasible, and following human-remains laws.

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: 103 • No: 41

House vote • 9/13/2025

Item 82 — Assembly AFLOOR

Yes: 54 • No: 18

Senate vote • 9/13/2025

Item WORF — Senate SFLOOR

Yes: 21 • No: 13

Senate vote • 3/20/2025

Item 92 — Senate SFLOOR

Yes: 28 • No: 10

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 650, Statutes of 2025.

    10/11/2025Senate

  2. Approved by the Governor.

    10/11/2025legislature

  3. Enrolled and presented to the Governor at 2 p.m.

    9/22/2025legislature

  4. Assembly amendments concurred in. (Ayes 21. Noes 13. Page 3048.) Ordered to engrossing and enrolling.

    9/13/2025Senate

  5. In Senate. Concurrence in Assembly amendments pending.

    9/13/2025Senate

  6. Read third time. Passed. (Ayes 54. Noes 18. Page 3444.) Ordered to the Senate.

    9/13/2025House

  7. Joint Rule 61(a)(14) and 51(a)(4) suspended. (Ayes 59. Noes 20. Page 3411.)

    9/13/2025House

  8. Ordered to third reading.

    9/10/2025House

  9. Withdrawn from committee.

    9/10/2025House

  10. Assembly Rule 96 suspended. (Ayes 56. Noes 19. Page 3164.)

    9/10/2025House

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

    9/8/2025House

  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 449.) 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

    10/11/2025

    HTML

  • Enrolled

    9/16/2025

    HTML

  • Amended Assembly

    9/8/2025

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  • Introduced

    1/23/2025

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