California Governor Signs Major CEQA Reform to Accelerate Housing Development

In 2025, California Governor Gavin Newsom signed landmark reforms to the California Environmental Quality Act (CEQA) aimed at addressing the state's housing affordability crisis by expediting construction and reducing legal obstacles. The legislation, part of the state's $321.1 billion budget, exempts urban infill housing and various infrastructure projects from CEQA review, thereby preventing lawsuits that have historically delayed development. This package, heavily influenced by proposals from Senator Scott Wiener and Assemblymember Buffy Wicks, also includes exemptions for broadband infrastructure, wildfire mitigation, and farmworker housing, along with streamlining permit processes and strengthening the Housing Accountability Act. The reforms are central to Newsom's “Abundance Agenda,” which prioritizes accelerating housing production to meet California’s goal of building 2.5 million homes by 2030. While supporters hail the changes as the most significant CEQA reforms in over five decades and a vital step to combat the housing shortage, critics, including environmental groups and some lawmakers, warn the expedited process diminishes public and environmental review protections. The legislation's passage was closely tied to the state budget approval, sparking debate over the legislative process and the use of a 'poison pill' provision tying CEQA reform to the budget's enactment.