Office of Legislative Affairs - "The Friday Wrap-Up"

The Los Angeles fires and state budget have dominated conversations in Sacramento over the last two weeks. Although Governor Gavin Newsom released his 2025 budget proposal which was estimated to have a small surplus ($363 million), on January 10, it is safe to anticipate substantive changes in the coming months as more accurate assessments of the impacts of the fires emerge. The governor has requested that the legislature consider, within the current special session, legislation:

• Providing $1 billion in funding to augment state emergency response funding for emergency response, cleanup, and recovery.
• Providing funding to expedite technical assistance to local educational agencies regarding efforts to rebuild and repair schools impacted by the emergency conditions.
• Accelerating availability of $1.5 billion in funding for greater preparedness against the growing threats of firestorms, windstorms, and other natural disasters to complement and add to disaster response and recovery funding provided by the federal government.

The legislature has also announced that a deal has been reached on the governor’s first special session directive to provide resources to protect California against federal lawsuits and file lawsuits defending California’s policies and provide resources to legal and community based organizations that defend vulnerable Californians directly threatened by federal actions. ABX1 1/SBX1 2 will provide a total of $50 million for these purposes:

• $25 million for the Attorney General’s office for litigation efforts against the federal government and for actions threatened to be taken by the federal government.
• $10 million for the Equal Access Fund (EAF) to defend the civil rights of Californians, including providing legal services to vulnerable persons at risk of discrimination, detention, eviction, wage theft, deportation, intimate partner violence, and other actions that put their safety at risk. This funding will flow to existing providers who currently receive EAF funds, a total of 115 organizations.
• $10 million for One California through the Department of Social Services into the existing infrastructure of existing legal service providers and outreach efforts that primarily support immigrant communities and immigration services. Currently, there are 85 organizations that are qualified to receive One California dollars.

Below is a brief outline of some of the governor’s proposed budget provisions that are likely to impact Orange County. In large part, the budget remains fairly status quo, however, as previously mentioned, a much different budget picture may emerge in the governor’s May revision which will take into account fire costs, actions of the federal government related to California, and revenue and economic conditions.

Homelessness. $100 million General Fund remains in the governor’s proposal for Encampment Resolution Fund grants as was committed in the 2024 Budget Act. No other funding has been proposed for homelessness. The administration is willing to collaborate with the legislature on additional funding for homelessness provided stronger accountability policies are included:

• Requiring a compliance housing element and local encampment policy consistent with state guidance.
• Prioritizing funding for jurisdictions with pro-housing designations.
• Allowing the reallocation of funding from local governments that fail to meet program requirements or show progress on key metrics.

The administration is also proposing to increase accountability metrics on current homelessness funding.

• Additional Accountability: Increased scrutiny of local governments’ fiscal and outcome reporting through the Homeless Data Integration System, including remedial action as necessary.
• In-Depth Local Reviews: The state will partner with select local governments to review their housing and homelessness programs to identify best practices and address opportunities for growth.
• Regional Convenings: The Department of Housing and Community Development will hold regional convenings with the Housing, Assistance, and Prevention Program regions to strengthen data and reporting programs and policies and improve the construction and implementation of regional Memoranda of Understanding (MOUs).
• Increased Enforcement: The Housing and Homelessness Accountability, Results, and Partnership Unit will review regional MOUs and plans to ensure local governments are following through on their commitments to act regionally and in a coordinated manner across their spectrum of homelessness programs.

Housing. The governor’s budget proposal does not include new funding for housing nor does it include an augmentation beyond current statute to the Low Income Housing Tax Credit (LIHTC) program. Current statute allocates $120 million, however, in recent years, an additional $500 million has been allocated on a one-time basis each year.

To promote efficient land use practices that integrate housing and transportation, including removing barriers to infill housing and supporting transit-oriented development and to help achieve the state’s housing and environmental goals while reducing costs for communities, the governor proposes the following:

• Reduce Costs: Streamline processes and remove barriers to development, including addressing delays in project approvals and permitting. Pursue policies to reduce costs associated with existing laws that hinder housing production and increase costs and development risks.
• Enhanced Accountability: Strengthen mechanisms to ensure jurisdictions meet their housing obligations and comply with existing laws.
• Housing and Transportation: Remove barriers to infill housing near transit. Enhance the Department of Housing and Community Development’s ability to recycle funding, update housing programs to promote affordability, and expand existing California Environmental Quality Act streamlining tools to accelerate infill housing production.

Department of Developmental Services (DDS). The budget summary highlights funding for the construction of three complex needs homes, approved in September 2023, on the Fairview property. This aligns with prior plans from the Department of General Services (DGS), which retained 15 acres of the site for the development of complex needs homes alongside additional housing, including affordable and market-rate units. The city of Costa Mesa and DGS have finalized agreements on the locations for these developments, supported by previous state funding of $10.5 million allocated to offset construction costs.

Medi-Cal. The Medi-Cal budget includes $174.6 billion ($37.6 billion General Fund) in 2024-25 and $188.1 billion ($42.1 billion General Fund) in 2025-26. Medi-Cal is projected to cover approximately 15 million Californians in 2024-25 and 14.5 million in 2025-26. Governor Newsom is proposing to continue eligibility redetermination flexibilities through June 30, 2025, resulting in reduced Medi-Cal disenrollment and increased costs of $3 billion ($1.1 billion General Fund) in 2024-25 compared to the 2024 Budget Act. Caseload is anticipated to decline in 2025-26 as unwinding flexibilities end, however, the administration is projecting an increase in Medi-Cal enrollees with higher average costs.

CalWORKs. In November 2024, California was selected as one of five states to participate in a federal pilot program to test alternative performance measures in the TANF program, called the CalWORKs Work and Family Well-Being Pilot in California. The vision for the pilot is to build upon a strong foundation of supportive and barrier removal services to facilitate employment and well-being. The Department of Social Services is due to provide statutory changes to the legislature aligning state policy and the federal program as well as cost estimates at the end of the month.

Public Safety

• Community Corrections Performance Incentive Grant: $126 .5 million General Fund is proposed for county probation departments. Additionally, the administration is proposing to update the methodology in collaboration with the Chief Probation Officers of California for calculating incentive payments to counties beginning in 2025-26.
• Office of the Inspector General: $3.6 million General Fund and 22 positions in 2025-26, and $5.7 million General Fund and 29 positions in 2026-27 and ongoing is proposed for the implementation of SB 1069 (Menjivar, 2024) which established that the Office of the Inspector General (OIG) has investigatory authority over all staff misconduct cases that involve sexual misconduct with an incarcerated person, and authorizes the OIG to monitor and investigate a complaint that involves sexual misconduct with an incarcerated person.

Climate Change and Environment. The governor is proposing a robust package utilizing climate bond funding, including shifting $273 million from prior General Fund obligations to climate bond funding. Below are some of the relevant proposed investments.

• Safe Drinking Water, Drought, Flood, and Water Resilience
  • Dam Safety and Climate Resilience: $231.5 million for local assistance competitive grants for projects that support dam safety and reservoir operations.
  • Water Quality and Safe Drinking Water and Tribal Water Infrastructure: $183.2 million for grants and loans to improve water quality and provide clean, safe, reliable drinking water and $11.1 million for tribal water infrastructure projects.
  • Flood Management Projects: $173.1 million for flood control projects and funding for the Flood Control Subventions Program.
  • Water Reuse and Recycling: $153.4 million for water reuse and recycling projects.
  • Various Investments: $173.5 million to improve water storage, replenish groundwater, improve conditions in streams and rivers, and complete various water resilience projects and programs.
• Wildfire and Forest Resilience
  • Forest Health Program: $82.2 million for projects that improve forest health by significantly reducing fuels, reintroducing beneficial fire, restoring degraded areas, and conserving threatened forests.
  • Regional Projects: $79.5 million for block grants to support landscape-scale, multi-benefit projects developed by forest collaboratives in high-risk regions.
  • Local Fire Prevention Grants: $59.1 million for the Wildfire Prevention Grants Program to support local projects in and near fire-threatened communities.
  • State Conservancies - Watershed Improvement and Wildfire Resilience: $22.4 million for various conservancies within the Natural Resources Agency for watershed improvement, forest health, biomass utilization, Chaparral and forest restoration, and workforce development.
  • Wildfire Mitigation: $9.1 million for the Wildfire Mitigation Program, which offers financial assistance to vulnerable populations in wildfire-prone areas throughout the state for cost-effective structure hardening and retrofitting to create fire-resistance homes, as well as defensible space and vegetation management activities.
  • Various Investments: $39.e million for wildfire and forest resilience projects and programs, including defensible space, home hardening, reforestation, and wood utilization.
• Coastal Resilience
  • Coastal Resilience: $30.8 million for projects to protect coastal lands, public access facilities, and habitats, as well as an additional $20 million for projects addressing sea level rise, flood management, and wetland restoration.
  • Sea Level Rise Mitigation and Adaptation: $20.3 million for planning and implementation of projects that help communities prepare for impacts of sea level rise and coastal flooding, and an additional $7.5 million for grants to increase resilience of coastal ecosystems and protect marine wildlife.
  • Dam Removal and Related Infrastructure: $8.5 million for removal of obsolete dams and modifications to related infrastructure.
• Extreme Heat Mitigation
  • Urban Greening Program: $46.8 million for greening communities through the creation and expansion of green streets, parks, and schoolyards.
  • Fairground Updates: $37.6 million to modify or upgrade fairgrounds to enhance communities’ emergency preparedness capabilities.
  • Extreme Heat and Community Resilience Program: $16.1 million to fund projects that reduce the impacts of extreme heat, reduce urban heat island effect, and build community resilience to extreme heat.
• Biodiversity and Nature-Based Solutions
  • Protect and Enhance Fish and Wildlife Resources: $176 million for projects
  • State Conservancies-Supporting Regional Action: $79.9 million for conservancies within the Natural Resources Agency to drive climate action through nature-based solutions, such as land conservation and habitat restoration and enhancement, and to improve equitable access to nature.
• Climate Smart Agriculture
  • Invasive Species Projects: $19.9 million to fund invasive species projects and activities recommended by the Invasive Species Council of California.
• Outdoor Access
  • Statewide Park Program: $190 million to create new parks and improve existing parks in the state’s most disadvantaged communities.
  • Reduction of Climate Impacts and Creation, Protection, and Expansion of Outdoor Recreation: $11 million to enhance visitor access on and increase the resilience of public lands by improving safety and accessibility of trails and facilities, increasing interpretive information, and completing wildfire preparedness and mitigation projects.

Transportation. The governor’s proposed budget maintains the transportation package included in recent budgets, including $15.4 billion from various funds over multiple years. The following are some of the funding categories:

• $7.7 billion for high-priority transit and rail infrastructure projects that will improve rail and transit connectivity between state and local/regional services that are designed to provide options to opt-out of traffic congestion and reduce greenhouse gas emissions. A portion of the funds can also be used to support transit operations.
• $1.1 billion for Active Transportation projects, the Reconnecting Communities Highways to Boulevards Pilot program, and climate adaptation projects to advance equity and health outcomes.
• $1.1 billion for the Zero Emission Transit Capital Program.
• $150 million for grade separation projects that support critical safety improvements and improve traffic and rail movement by separating the vehicle roadway from the rail tracks.

Additionally, the governor is proposing $25 million General Fund for the Clean California Program for a Community Cleanup and Employment Pathways Grant program. The funding will provide matching grants to communities with a Clean California Community designation focused on litter remediation and jobs creation.

For additional broader analyses of the state budget, the following are helpful resources:

CSAC

UCC

Rural County Representatives of California (RCRC)

County Welfare Directors Association of California (CWDA)

League of California Cities

Assembly Budget Committee

Senate Budget & Fiscal Review Committee

Summary of Governor’s Actions on the Los Angeles Fires

Governor Gavin Newsom has been leading the state’s efforts to combat the record breaking wildfires that started in Los Angeles last week. The Palisades, Eaton, Hurst and Auto (Ventura County) fires are still actively burning with varying levels of containment. The Kenneth, Sunset, and Lidia fires have been contained. Thus far, 25 people are known to have lost their lives, more than 35,000 acres have burned, and more than 10,000 homes and buildings have been damaged or destroyed. The official causes of the fire are still under investigation, but a dry landscape and strong winds created the perfect conditions for the fire to spread rapidly. 

Amidst predictions of another round of strong winds and “fire weather” this week, the Governor deployed 1,000 additional National Guard troops to the fire zone. His office has announced multiple rounds of state and federal efforts to fight the fire and aid in the rebuilding and recovery process. A full list of his office’s announcements can be found below. 

As of January 13, the Governor highlighted the following deployed resources:

• 15,000+ firefighting personnel
• 2,500 California National Guard
• 1460+ Fire Engines
• 80+ Aircraft
• 170+ Water Tenders
• 175+ Dozers

As discussed above, the governor expanded the special session of the California legislature that he convened in November to further boost response and initial recovery efforts for Los Angeles. Additionally, over the weekend, the governor signed two executive orders to boost recovery efforts – one to help Los Angeles rebuild faster and stronger by cutting red tape, and the other to direct fast action on clearing debris and preparing for mudslides and flooding.

California Department of Insurance Response to Los Angeles Fires

Insurance Commissioner Ricardo Lara declared an emergency situation for Los Angeles and Ventura counties earlier this week, requiring strict oversight of out-of-state nonlicensed adjusters being used to help handle the large volume of claims resulting from the Palisades, Eaton, and other fires.

Under the Commissioner’s emergency declaration to insurance companies, qualified licensed adjusters, and qualified managers authorized to do business in California, all nonlicensed claims adjusters must be overseen by a California qualified licensed adjuster, qualified manager, or insurer and properly trained on the California Unfair Practices Act, the Fair Claims Settlement Practices Regulations, and all laws relating to property and casualty insurance claims handling.

Insurance companies may have their own adjuster and/or may contract with an independent insurance adjuster to assist consumers with their claims. The Department of Insurance (CDI) urges consumers to begin the claims process by contacting their insurance company or agent and try to settle their claims before contacting a public adjuster or a lawyer. If consumers have questions or concerns about their claim, what their insurer is telling them, or settlement offers, the Department’s consumer services team is prepared to assist.

Last week, Commissioner Lara also issued a Notice to public adjusters reminding them of the laws that are in place for how and when they may contact those affected by wildfires and warning them to comply in order to protect survivors. CDI is on alert for potential fraud and has posted “Don’t Get Scammed After a Disaster” tips in English and Spanish urging consumers not to rush into decisions and to report any suspected illegal actions by unscrupulous contractors or public adjusters.

Commissioner Lara also announced free two-day insurance support workshops on January 18 and 19 in Santa Monica and January 25 and 26 in Pasadena to help survivors understand their insurance policies and the claims process, while also providing information about available resources for rebuilding and recovery. This workshop is open to all those impacted by the recent wildfires. Call 800-927-4357 to schedule a one-on-one appointment with a Department of Insurance expert.

We are closely monitoring the impacts of the Los Angeles fires on the state’s FAIR insurance program.

PPIC Fast Facts

The Public Policy Institute of California (PPIC) published a fact sheet this week highlighting California population demographic information as a helpful reference for policy makers and regulators.

1 in 8 US residents lives in California.

• With just over 39 million people (according to July 2024 estimates), California is the nation’s most populous state—its population is much larger than that of second-place Texas (31.3 million) and third-place Florida (23.4 million).
• The California Department of Finance currently projects that the state’s population will reach 39.7 million in 2030, and 40.9 million by 2040.

California’s population growth has slowed dramatically in the 21st century.

• Since 2000, California has experienced its slowest rates of growth ever recorded.
• From 2010 to 2020, California’s population grew by 5.8% (or 2.4 million), according to decennial census counts. This was slower than the rate of growth in the rest of the nation (6.8%), leading to the loss of a seat in the US House of Representatives for the first time in California’s history.
• Recent rates have been dramatically lower than the growth throughout the 20th century. From 1900 to 1950, California’s population rose from under 2 million to 10 million. It more than tripled in the last half of the century, reaching 34 million by 2000, and its growth rate was much higher than that of the rest of the United States.

California’s population declined during the pandemic but has since started to grow.

• California lost 412,000 people between July 2020 and July 2023. Most of this loss occurred during the first year of the pandemic and was driven by a sharp rise in residents moving to other states. But fewer births, higher deaths, and lower international migration also played a role. Between July 2023 and 2024, the state population grew by 49,000 people (0.13%).
• The number of residents moving to other states reached its highest level ever during the pandemic, and international migration fell to its lowest level in decades (according to Department of Finance estimates). However, in the last three years net international migration has increased from near zero in 2021 to 134,000 in 2024. Losses to other states have slowed, from net losses of 343,000 in 2021 to 197,000 in 2024.
• Birth rates hit a new record low in 2024, with the number of births falling 20% since 2015. The number of deaths declined substantially after the height of the pandemic, with 16% fewer deaths in 2024 than in 2021. Birth and death trends are similar in the rest of the nation.
• Thirty of the state’s 58 counties experienced population increases from July 2023 to July 2024. The largest increases were in Los Angeles, San Diego, Sacramento, Riverside, and San Joaquin counties. In contrast, Ventura, Marin, and San Francisco saw the biggest losses.

No race or ethnic group constitutes a majority of the state population.

• 40% of Californians are Latino, 34% are white, 16% are Asian American or Pacific Islander, 6% are Black, 3% are multiracial, and fewer than 1% are Native American or Alaska Natives, according to US Census Bureau estimates. Only six other states (Hawaii, New Mexico, Texas, Nevada, Maryland, and Georgia) have no majority group. Latinos are the largest group in California, Texas, and New Mexico; Asians are the largest group in Hawaii. Whites make up just under half of the population of Nevada, Maryland, and Georgia.
• More than half of young Californians (51.4% of those 24 and under) are Latino. Conversely, more than half of those 65 and older are white (53.0%).

Over 10 million Californians are immigrants.

• According to the 2023 American Community Survey, 27% of Californians are foreign born—more than twice the share in the rest of the nation (12%). Several other states have relatively high shares: New Jersey (24%), New York (23%), and Florida (22%).
• More than half (55%) of foreign-born Californians are naturalized US citizens, compared to 39% in 2000. Most other immigrants are legal permanent residents.

California is aging, but its population is young compared to the rest of the country.

• In 2023, 16.2% of the state’s population was 65 or older. The California Department of Finance projects that about one in four (24.9%) Californians will be 65 or older by 2050.
• California’s population is the eleventh-youngest in the nation (Utah has the youngest population). The median age in California is 38.2, compared to 39.2 nationwide, according to the 2023 American Community Survey.

Population loss has political consequences.

• California’s lost congressional seat was unprecedented, but updated population estimates suggest that if congressional districts had been allocated more recently, the state might have lost three seats. If recent trends continue, California could lose as many as 4 of its 52 seats in the 2030 congressional apportionment.
• Sluggish or negative population growth in some parts of the state—including Los Angeles County and most rural areas—has led to reduced representation compared to faster-growing areas such as the Inland Empire and the Sacramento metropolitan area.
• While most migration out of California is driven by personal and financial factors, the PPIC Statewide Survey finds that people who lean conservative are more likely to express a desire to leave the state. Even a modest partisan imbalance in out-migration could gradually shift California’s population leftward.

Governor’s Press Releases

Below is a list of the governor’s press releases beginning January 8.

January 14: Governor Newsom issues order to protect fire victims from predatory real estate speculators

January 14: Governor Newsom mobilizes L.A. debris removal teams to begin work immediately once cleared for safety

January 14: Governor Newsom signs executive order to quickly help L.A. schools, children and families affected by firestorms

January 13: Here’s how California has increased wildfire response and forest management in the face of a hotter, drier climate

January 13: As dangerous winds expected in Southern California, state continues augmenting unprecedented resources

January 13: Governor Newsom proposes billions in new funding for L.A. firestorm response and recovery

January 13: California to provide tax relief to businesses impacted by Los Angeles wildfires

January 12: With eye toward L.A.’s recovery, Governor Newsom issues executive order directing fast action to clear debris, prepare for mudslides and flooding

January 12: Governor Newsom deploys an additional 1,000 California National Guard service members to Los Angeles fires

January 12: Governor Newsom signs executive order to help Los Angeles rebuild faster and stronger

January 11: On frontlines of firefight, Governor Newsom meets with first responders, announces tax relief for L.A. County

January 11: With new round of severe fire weather on the way, California continues historic deployment

January 11: Governor Newsom welcomes firefighters from Mexico to boost firefighting capacity

January 11: California provides tax relief for those affected by Los Angeles wildfires

January 11: Governor Newsom doubles California National Guard deployment to Los Angeles fires

January 10: Governor Newsom issues executive order supporting ongoing Los Angeles firefight

January 10: Los Angeles wildfire survivors can apply for federal aid today, new website launched to help Californians

January 10: Governor Newsom sends 2025-26 budget plan to Legislature

January 9: TOMORROW: State finance director to hold media briefing on Governor Newsom’s 2025-26 budget

January 9: Governor Newsom deploys California National Guard to Los Angeles fires: ‘Looting will not be tolerated’

January 9: Governor Newsom’s statement on the death of Riverside County Sheriff’s Deputy

January 9: California’s partnership with federal government boosts state’s rapid response to Los Angeles fires

January 8: California mobilizes additional water tenders to Los Angeles fires

January 8: More than 7,500 firefighting, emergency personnel deployed to fight unprecedented Los Angeles fires

January 8: Governor Newsom quickly secures Major Disaster Declaration from President Biden for Los Angeles fires

LEGISLATIVE BRANCH ACTIVITY

U.S. Senate Considering Vote to Overturn California Clean Vehicle Mandate

On December 17 the U.S. Environmental Protection Agency approved the State of California’s request for a waiver under the Clean Air Act known as the Advanced Clean Car Program which would mandate electric vehicles in the state starting in 2035. Discussions are occurring among Senators to determine if the rule is subject to being overturned under a law called the Congressional Review Act (CRA).

The CRA is a law from the 1970s that allows Congress to overturn a rule or regulation promulgated by the President within the previous sixty legislative days. Under the law, the vote to overturn a regulation is privileged in the Senate allowing it to circumvent the 60-vote filibuster threshold. A simple majority vote in the House and Senate is all that is needed to send the motion to overturn the rule to the President for signature into law. In 2017 congressional Republicans used the CRA to overturn more than a dozen rules issued by President Obama and in 2021 Democrats used the CRA to overturn three rules issued by President Trump.

President Trump is likely to try to unravel the rule which would spur a lengthy court battle. Use of the CRA could be a more direct way for Congress to overturn the mandate, however its applicability to the waiver under the Clean Air Act issued by EPA is under debate. The Senate Parliamentarian, a non-partisan officer of the Senate is in charge of determining applicability of the CRA to rules and regulations. Which way the parliamentarian rules could ultimately be what decides the fate of the EPA waiver allowing for California’s latest clean vehicle regulations.

President-Elect Trump Discusses Raising the SALT Deduction Cap

The bipartisan SALT Caucus led by Rep. Mike Lawler and including Rep. Young Kim is unhappy with the cap on state and local tax deductions (SALT) and has opened discussions with incoming President Donald Trump about raising the $10,000 SALT deduction. President-elect Trump’s economic advisers have discussed expanding the cap to $20,000 despite calls from lawmakers to completely eliminate it. The debate is part of the development of a tax reform package which many Republicans in Washington say should contain budget cuts to be offset cuts.

Raising or eliminating the SALT cap would soften the burden for constituents in states like New York and California, where the combination of high tax rates and expensive property values make a write-off especially valuable. SALT was originally a feature of the 2017 Tax Cuts and Jobs Act (TCJA), which expires in December 2025. With Republicans controlling Congress for two years, their tax priorities are likely to be included in an extension of the TCJA. Lifting the cap is unpopular among some conservative Republicans from lower-tax states and nonpartisan analysts, who say the change would benefit mostly high-income households in largely Democratic states. The House Ways and Means Committee is generating models to show how different SALT caps will impact different congressional districts around the country.

Republicans Consider Adding California Wildfire Relief to Debt Ceiling Vote

In order to force a vote on raising the debt ceiling, House Republican leadership is discussing adding disaster relief funding for the current California wildfires to future legislation raising the nation’s borrowing limit. Attaching a measure to a reconciliation package would make disaster relief conditional, thereby avoiding negotiation with Democrats. However, several ultraconservative lawmakers are loath to change the debt limit, which could jeopardize leadership’s reconciliation plans. The challenge for Speaker Mike Johnson will be to coalesce the Republican conference around a path forward while working with a slim majority.

A number of Democratic lawmakers from California led by Rep. Judy Chu invited President-elect Trump to visit California and assess the damages of the ongoing wildfires. In a letter to the President-elect, Rep. Chu along with Senators Alex Padilla and Adam Schiff urged Congress “to pass bipartisan emergency disaster appropriations legislation to support the long recovery ahead.” Additionally, the group wrote to congressional leaders and appropriators inviting them to tour the damage.

Confirmation Hearings for President-Elect Trump’s Cabinet Begin

On Tuesday, confirmation hearings for President-Elect Donald Trump’s cabinet began. Notable hearings included Sean Duffy, the former Congressman nominated for Secretary of Transportation; Scott Turner, the nominee for Housing and Urban Development Secretary; and Kristi Noem, the South Dakota Governor nominated to become the Secretary of Homeland Security.

Peter Hegseth, the Fox News commentator vying to be the Secretary of Defense, was a particularly contentious nomination for Democrats asserted he lacks the necessary experience. However, with a simple majority needed for confirmation, Hegseth—and others—will likely earn the approval of the Senate.

After a nominee's committee hearing, the committee votes on whether to advance the nomination to the full Senate. If approved, the Senate debates the nominee, and if opposition arises, a cloture vote (requiring a simple majority) may be needed to end debate. The final confirmation vote also requires a simple majority, with the Vice President casting a tie-breaking vote if necessary. Once confirmed, the nominee is sworn in and officially assumes their position.

EXECUTIVE BRANCH ACTIVITY

California Air Resources Board Withdraws Requests for Waivers From EPA

On Monday, the California Air Resources Board (CARB) said that they are withdrawing requests for permission to enforce stricter-than-federal rules aimed at phasing out diesel burning trucks and trains. CARB announced this prior to President-Elect Trump’s inauguration because his administration is likely to overturn the rules.

California had been waiting on the Biden administration to grant permission for it to implement eight rules, covering everything from passenger cars to lawn equipment. It ultimately got six of these waivers. The rules that were withdrawn were the Advanced Clean Fleets and the In-Use Locomotive Regulation. The American Lung Association estimated that both rules could provide more than $58 billion in health benefits like reduced heart attacks and asthma complications by 2050.

President Biden Declares Major Disaster in California

President Joe Biden has declared a major disaster in California in response to the severe wildfires devastating the Los Angeles area. This declaration enables the allocation of federal funds to support affected individuals and communities, facilitating access to grants for temporary housing, home repairs, and low-cost loans to cover uninsured property losses.

The wildfires, notably the Palisades and Eaton fires, have led to at least twenty-six fatalities, the destruction of thousands of structures, and the evacuation of approximately 179,000 residents. In response, President Biden has canceled a planned trip to Italy to concentrate on federal relief efforts. Governor Gavin Newsom expressed gratitude for the swift federal response, emphasizing the importance of collaboration in addressing the crisis.

The Federal Emergency Management Agency (FEMA) has also approved Fire Management Assistance Grants to reimburse California for firefighting costs. The situation remains critical, with strong winds and dry conditions exacerbating the fires. Residents are urged to adhere to evacuation orders and stay informed through official channels.

Annual Homelessness Assessment Report to Congress

The Department of Housing and Urban Developed (HUD) released their annual Homelessness Assessment Report to Congress. The number of homeless Californians increased by just over 3% in 2024, lower that the national average. California is also leading the nation in the availability of year-round shelter beds. California’s year-round shelter bed capacity grew by 5.7% to over 200,000 beds.

Homelessness nationwide increased by 18%, nearly every population experiencing an increase in homelessness. The federal findings are a part of HUD’s annual point-in-time count, a rough estimate of the number of people experiencing homelessness in a single night in January.

LEGISLATION INTRODUCED BY ORANGE COUNTY DELEGATION

There was no legislation introduced by the Orange County Delegation this week.

Friday 01/17

State Farm’s finances were a worry even before L.A. fires. Here’s what we know about its ability to pay claims going forward -- Months before the Los Angeles wildfires sparked, State Farm’s California arm was already in trouble, it told state regulators. Megan Fan Munce in the San Francisco Chronicle$ -- 1/17/25

Thursday 01/16

Insurers’ Rule Change Puts California Homeowners on the Hook for L.A. Fire -- A little-noticed rule change last year by California’s insurance regulator will likely shift a large chunk of the cost of the Los Angeles wildfires to homeowners across the state. Jean Eaglesham and Sara Randazzo in the Wall Street Journal$ -- 1/16/25

California drops zero-emission truck rules after inaction by Biden’s EPA -- California won’t pursue a ban on new diesel truck sales by 2036 — and force fleet owners to take them off the road by 2042 — after Biden’s EPA failed to act on necessary waivers from federal air quality rules. Russ Mitchell in the Los Angeles Times$ -- 1/16/25

Wednesday 01/15

How new California laws taking effect this month could affect your health and medical care -- With supermajorities in both houses, Democrats in the California Legislature passed — and Democratic Gov. Gavin Newsom signed — laws taking effect this year that will erase medical debt from credit reports, allow public health officials to inspect immigrant detention centers, and require health insurance companies to cover fertility services such as in vitro fertilization. Christine Mai-Duc KFF Health News in the San Francisco Chronicle$ -- 1/15/25

How the LA fires could exacerbate California’s homelessness crisis -- But it’s not just people whose homes burn down that feel the pain. Renters in undamaged buildings get evicted because their landlord raises rents to take advantage of refugees’ desperation — or because the landlord lost another home in the fire and needs to move into their rental unit. Marisa Kendall in the San Francisco Chronicle$ -- 1/15/25

Tuesday 01/14

Gov. Newsom proposes stable California school funding in 2025-26 with an ominous warning -- School districts would get a small cost-of-living increase and $500 million to train math and literacy coaches; UC and CSU would face as much as an 8% cut. John Fensterwald, Diana Lambert, Zaidee Stavely, Karen D'Souza, Michael Burke, Amy DiPierro, and Emma Gallegos EdSource -- 1/14/25

Newsom proposes $2.5 billion for wildfire response as L.A. burns -- Gov. Gavin Newsom asked legislative leaders Monday to approve at least $2.5 billion in response to the wildfires that have ravaged Los Angeles County — a move that expands the focus of the special session in the California Capitol beyond strictly fighting President-elect Donald Trump. Taryn Luna and Andrea Castillo in the Los Angeles Times$ -- 1/14/25

Monday 01/13
Supreme Court denies oil industry plea to block climate lawsuits filed by California, other blue states -- The Supreme Court dealt a major setback to the oil industry on Monday, refusing to block lawsuits from California and other blue states that seek billions of dollars in damages for the impact of climate change. David G. Savage in the Los Angeles Times$ -- 1/13/25

Weekend (01/11-01/12)

Insurance commissioner issues moratorium on home policy cancellations in fire zones -- The moratorium, issued Thursday, protects homeowners living within the perimeter of the fire and in adjoining ZIP codes from losing their policies for one year, starting from when Gov. Gavin Newsom declared a state of emergency on Wednesday. Laurence Darmiento in the Los Angeles Times$ -- 1/11/25

Newsom suspends landmark environmental laws to ease rebuilding in wildfire zones -- Gov. Gavin Newsom signed an executive order suspending parts of the Coastal Act and the California Environmental Quality Act to aid homeowners rebuilding after losses in last week’s wildfires. Seema Mehta in the Los Angeles Times$ -- 1/12/25