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California Budget Approval Comes with a Catch: Housing, Labor, Environmental Overhaul

  • California lawmakers face a June 30 deadline to finalize a $321 billion state budget that includes a housing bill tied to new construction wage standards and environmental law changes.
  • The housing bill, introduced by Assemblymember Buffy Wicks in March and folded into the budget last month, creates a new CEQA exemption with lower minimum wages for certain housing projects.
  • Supporters argue the deal could reshape housing legislation by offering a development-friendly wage standard, paying most Bay Area construction workers at least $40 per hour, while opponents say it threatens worker wages and environmental safeguards.
  • A recent poll shows 75 percent of voters support CEQA, and 66 to 70 percent oppose weakening environmental review, reducing community input, or lowering workers' bargaining power, highlighting broad public resistance.
  • The fast-tracked budget deal risks dividing Democrats, heightens labor and environmental opposition, and could significantly alter California's labor policy and environmental protections if enacted.
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Cal Matters broke the news in Sacramento, United States on Wednesday, June 25, 2025.
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