On June 30, 2025, Governor Newsom signed two budget trailer bills into law: Assembly Bill 130 and Senate Bill 131, which reform the California Environmental Quality Act (CEQA) effective immediately. As explained by the Governor, the bills constitute “the most consequential housing and infrastructure reform in recent state history.” The Governor made it clear that his approval of the 2025-2026 state budget was contingent on these bills, which helped expedite an otherwise controversial and lengthy approval process by the State Legislature.
The bills, which include provisions from Senate Bill 607 (Wiener) and Assembly Bill 609 (Wicks), touch almost every major land use statute in California and include changes that affect various types of development projects. A summary of the most significant changes is provided below.
