Newsom Signs Major CEQA Rollback for Housing, Projects

California Governor Gavin Newsom has signed legislation enacting the most significant rollback of the California Environmental Quality Act (CEQA) in decades. The new laws exempt a broad range of urban infill housing, advanced manufacturing, and critical infrastructure projects from CEQA’s environmental review process, while maintaining protections for sensitive lands. The changes also restrict legal challenges under CEQA and streamline rezoning and permitting to accelerate project timelines. Supporters, including developers and pro-housing advocates, argue the reforms are vital for meeting housing goals and overcoming bureaucratic barriers. However, environmental groups and labor unions strongly oppose the measures, citing concerns over reduced transparency, weakened safeguards, and limited legislative debate. The overhaul has received bipartisan support but has deepened divisions among Democrats.