News
July 2, 2025

California Rolls Back CEQA to Boost Housing

Caroline Raffetto

As California's new fiscal year begins, Governor Gavin Newsom’s recently signed budget includes a sweeping overhaul of the California Environmental Quality Act (CEQA), a move aimed at accelerating housing construction in the state. The change comes after years of criticism that CEQA has been a barrier to development.

Newsom, along with other lawmakers and industry leaders, has long argued that CEQA—originally intended to protect the environment—has been weaponized to delay or block much-needed housing and infrastructure projects. The newly enacted budget reflects his push to reduce those hurdles.

“Governor Gavin Newsom has made it clear that CEQA is not working as intended when it comes to housing,” said Dustin Gardiner, co-author of Politico’s California Playbook, during a podcast discussion. “This rollback is a politically charged but potentially impactful move.”

The reforms streamline the CEQA review process, shorten litigation timelines, and reduce the risk of lawsuits stalling housing developments. Critics of CEQA argue that even environmentally responsible projects have been bogged down by lawsuits and procedural red tape, leading to high costs and lengthy delays.

The move comes amid a worsening housing crisis in California, where affordability and availability remain top concerns for both policymakers and voters. “Newsom and others have long seen the California Environmental Quality Act as a major impediment to building housing,” Gardiner noted.

While supporters of the change argue it will spur private and public housing development, environmental advocates worry that gutting CEQA protections could lead to unchecked development and weakened community input.

The rollback of CEQA marks one of the most significant policy shifts in California’s approach to housing and development in recent memory. It comes at a time when state and local governments are under pressure to meet aggressive housing production targets mandated by regional housing needs assessments.

Industry experts say the reforms could help fast-track affordable housing, transit-oriented developments, and mixed-use projects that are currently tied up in environmental litigation. However, it’s unclear how the changes will play out in court, where CEQA lawsuits have historically been a powerful tool for opposition.

Cities and developers may still need to navigate local zoning restrictions and funding challenges, but CEQA reform is being hailed as a key step toward unlocking more housing supply in one of the nation’s most expensive markets.

The political implications of the rollback are also significant. As California heads into an election cycle, Newsom’s push may galvanize both supporters who favor more housing and opponents who view the move as a threat to environmental oversight and community engagement.

Observers will be watching closely to see whether the CEQA changes will actually deliver more housing—or simply shift the terrain of California’s long-running housing battles.

Originally reported by Scott Shafer and Marisa Lagos in KQED.

News
July 2, 2025

California Rolls Back CEQA to Boost Housing

Caroline Raffetto
Construction Industry
California

As California's new fiscal year begins, Governor Gavin Newsom’s recently signed budget includes a sweeping overhaul of the California Environmental Quality Act (CEQA), a move aimed at accelerating housing construction in the state. The change comes after years of criticism that CEQA has been a barrier to development.

Newsom, along with other lawmakers and industry leaders, has long argued that CEQA—originally intended to protect the environment—has been weaponized to delay or block much-needed housing and infrastructure projects. The newly enacted budget reflects his push to reduce those hurdles.

“Governor Gavin Newsom has made it clear that CEQA is not working as intended when it comes to housing,” said Dustin Gardiner, co-author of Politico’s California Playbook, during a podcast discussion. “This rollback is a politically charged but potentially impactful move.”

The reforms streamline the CEQA review process, shorten litigation timelines, and reduce the risk of lawsuits stalling housing developments. Critics of CEQA argue that even environmentally responsible projects have been bogged down by lawsuits and procedural red tape, leading to high costs and lengthy delays.

The move comes amid a worsening housing crisis in California, where affordability and availability remain top concerns for both policymakers and voters. “Newsom and others have long seen the California Environmental Quality Act as a major impediment to building housing,” Gardiner noted.

While supporters of the change argue it will spur private and public housing development, environmental advocates worry that gutting CEQA protections could lead to unchecked development and weakened community input.

The rollback of CEQA marks one of the most significant policy shifts in California’s approach to housing and development in recent memory. It comes at a time when state and local governments are under pressure to meet aggressive housing production targets mandated by regional housing needs assessments.

Industry experts say the reforms could help fast-track affordable housing, transit-oriented developments, and mixed-use projects that are currently tied up in environmental litigation. However, it’s unclear how the changes will play out in court, where CEQA lawsuits have historically been a powerful tool for opposition.

Cities and developers may still need to navigate local zoning restrictions and funding challenges, but CEQA reform is being hailed as a key step toward unlocking more housing supply in one of the nation’s most expensive markets.

The political implications of the rollback are also significant. As California heads into an election cycle, Newsom’s push may galvanize both supporters who favor more housing and opponents who view the move as a threat to environmental oversight and community engagement.

Observers will be watching closely to see whether the CEQA changes will actually deliver more housing—or simply shift the terrain of California’s long-running housing battles.

Originally reported by Scott Shafer and Marisa Lagos in KQED.