C
alifornia Governor Gavin Newsom has signed into law a comprehensive housing and infrastructure reform package, aimed at addressing the state's affordability crisis and housing shortage. The reforms, included in the 2025-2026 state budget, roll back environmental review and permitting requirements under the California Environmental Quality Act (CEQA) to reduce barriers, timelines, and costs for new housing.

    The changes target infill development, a crucial need in California, where thousands of homes were destroyed by wildfires earlier this year. A key provision exempts local rezoning efforts from CEQA review for infill housing in areas already prepared or suitable for development, while maintaining protections for sensitive lands. The reforms also freeze residential building standards through 2031 to provide consistency and predictability for builders.

    Supporters hail the legislation as a major victory for housing, saying it will make California more affordable by alleviating the housing crisis and reducing homelessness. Critics, however, argue that environmental regulations are being unfairly scapegoated for limiting infill development. Some experts suggest that CEQA receives disproportionate blame and attention, while others advocate for prioritizing environmental protections in rebuilding efforts after devastating wildfires.