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California Dismantles Landmark Environmental Law to Tackle Housing Crisis

  • On Monday night, Governor Gavin Newsom and California legislators approved changes to state environmental regulations aimed at accelerating the development of new housing.
  • The legislation emerged from a prolonged political battle linked to the state's $321.1 billion 2025-2026 budget package, which Newsom conditioned on CEQA reform approval.
  • The new law exempts most apartment buildings and certain projects in urban infill areas from CEQA reviews, aiming to reduce delays caused by environmental lawsuits.
  • Governor Newsom described the bill as a landmark change to housing policy in California’s recent history, while opponents cautioned that it could endanger hundreds of thousands of acres of sensitive habitats.
  • The law takes effect on July 1, 2025, and could accelerate housing production but has raised concerns from environmental groups and Native American tribes about its impacts.
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The administration of Gavin Newsom has reformed a historic law on the environment, which over time has become one of the causes of the huge housing crisis.

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The Silicon Valley Voice broke the news in on Monday, June 30, 2025.
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