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

The legislature returned to Sacramento on August 18 and will consider advancing more than 1,100 bills over the next 4 weeks to Governor Gavin Newsom’s desk. The Senate and Assembly appropriations committees will announce the outcome of legislation that has a significant fiscal impact on the state on August 29. Bills that are held on the suspense file will not move forward this year. Bills released from the suspense file will be voted upon by the full Senate or Assembly. The majority of the roughly 1,100 bills will ultimately be delivered to Governor Gavin Newsom for his consideration. The legislature adjourns the 2025 legislative session on September 12 and Newsom will have until October 12 to act on bills sent to him by lawmakers.

Congressional Redistricting

As anticipated, action on redistricting has been a major occupation of the legislature in Sacramento this week. The redistricting measures proposed by the governor to counteract the possibility of Texas or other states’ gerrymandering congressional maps are moving through the legislative process and are outlined below. All 3 measures require a ⅔ vote of the legislature.

Legislative Republicans, led by Senator Tony Strickland (R-Huntington Beach), filed a lawsuit on August 18, in the California Supreme Court, to block the consideration of the bills that would facilitate a special election, arguing that the measures are a violation of the state constitution because legislation must be publicly available for 30 days before lawmakers vote on it. Petitioners also include Senator Suzette Martinez Valladares (R-Yucaipa) and Assemblymembers Tri Ta (R-Westminster) and Kathryn Sanchez (R-Rancho Santa Margarita).

AB 604 and SB 280 were introduced in February; however, they were amended into their current form related to the special election on August 18. It is not unusual for lawmakers to gut-and-amend legislation allowing only 72 hours in print before the entire legislature votes on it, however, the matter has not previously been tested in court.

All 3 of the following bills have moved through necessary policy and fiscal committees this week. They are expected to be voted on by the entire legislature on August 21 and to move immediately to the governor’s desk for his signature.

SB 280 (Cervantes) Elections

• Calls for a statewide special election to be held on November 4, 2025.
• States that the Secretary of State shall submit Assembly Constitutional Amendment (ACA) 8 to the voters at the election and it shall be designated as Proposition 50.
• Appropriates funding, in an amount to be determined, for the costs of the special election. Funding allocations will be according to a schedule provided by the Director of Finance, and any excess funds received by a county shall be used to offset state costs for the next statewide election conducted by the county. Each county shall report its final total cost to administer the statewide special election to the Secretary of State in a manner and by a date determined by the Secretary of State.
• Allows the consolidation of a local election which was called on or before August 8, 2025, and scheduled to be held on November 4, 2025, with the statewide special election.
• Does not allow a district, city, or other political subdivision to call a special election to be held on November 4, 2025, after SB 280 is signed into law.
• Outlines rules for:
  • The ballot title, summary, and analysis
  • Ballot drop-off locations
  • Vote centers
  • Consolidated polling locations
  • The Secretary of State’s establishment of a process to consider requests from counties to adjust or partially waive the minimally required number, location, or operational duration of consolidated polling places required, or to partially waive the provisions regarding the maximum number of voters in a precinct.
• States that the elections official shall accept a completed signature verification statement, unsigned identification envelope statement, or a combined vote by mail ballot signature verification statement and unsigned identification envelope statement until 5 p.m. on the 26th calendar day following the election.

AB 604 (Aguiar-Curry) Redistricting: congressional districts: Specifies the elements that define the congressional districts if ACA 8 is adopted by the voters and that these congressional districts will remain in effect only until a new map of congressional districts is certified by the Citizens Redistricting Commission.

ACA 8 (Rivas) Congressional redistricting

• Designates ACA 8 the Election Rigging Response Act, to be voted on by the electorate on November 4, 2025.
• Calls on Congress to pass federal legislation and propose an amendment of the United States Constitution to require the use of fair, independent, and nonpartisan redistricting commissions nationwide.
• States that the single-member districts for Congress reflected in AB 604 shall temporarily be used for every future congressional election before the certification of new congressional boundary lines drawn by the Citizens Redistricting Commission in 2031.
• States that the provisions shall only become operative another state adopts a new congressional district map that takes effect after August 1, 2025, and before January 1, 2031, and such redistricting is not required by a federal court order.

Senate and Assembly Hold Joint Health Committee Hearing on Impacts of HR 1

The Senate and Assembly held a joint Health Committee informational hearing earlier this week on the impacts of the recently passed HR 1 on California’s healthcare system. The hearing was chaired by Senator Caroline Menjivar (D-Van Nuys) and Assemblymember Mia Bonta (D-Oakland). The hearing was also attended by Senator Laura Richardson (D-Inglewood), Assemblymembers Pilar Schiavo (D-Santa Clarita), Juan Carrillo (D-Palmdale), Dawn Addis (D-San Luis Obispo), Dr. Akilah Weber Pierson (D-San Diego), and Darshana Patel (D-San Diego).

The first panel on impacts to the Medi-Cal program included Michelle Baass, Director of the Department of Health Care Services (DHCS); Angela Pontes, Senior VP of Government Affairs for Planned Parenthood Affiliates of California; Adam Dorsey, Group VP of Financial Policy at the California Hospital Association; and Linda Nguy, Associate Director of Policy & Advocacy for the Western Center on Law & Poverty. Panelists highlighted the drastic cuts and rule changes to Medi-Cal under HR 1.

• Dorsey testified that hospitals expect to lose between $66 and $128 billion in revenue over a 10-year period, or about 30% of hospitals’ Medi-Cal revenue.
• Nguy highlighted the millions who could lose Medi-Cal coverage because they are unable to comply with the now more onerous paperwork requirements.
• Panelists advocated for the use of creative ideas, technology to automate paperwork challenges, and new revenue solutions to help address these challenges. All acknowledged the dire nature of the situation.

Legislators inquired about Medi-Cal’s transition to the new rules under HR 1.

• Senator Richardson asked for more data around the impacts that can be shared with and used to educate the public.
• Assemblymember Schiavo highlighted the critical nature of the funding for rural hospitals and healthcare access in low-income communities.
• Weber Pierson asked how DHCS was planning to incentivize Medi-Cal providers to continue to serve patients. She also asked if DHCS has a plan in place for informing individuals that they may no longer qualify for Medi-Cal coverage. In response, Director Baass indicated that they were thinking about it but did not yet have a plan. She said that DHCS is focused on implementation of the work requirements and redeterminations. She also said that they had not thought of additional incentives for Medi-Cal providers following changes to the Managed Care Organization (MCO) tax. DHCS is trying to assess what a new framework could look like.

Senator Menjivar asked about a delay in implementation, with Director Baass responding that there is a potential to get an implementation waiver until December 31, 2028, (delayed from January 1, 2027) if the state is acting in good faith. She said implementation guidance from the Centers for Medicare and Medicaid Services (CMS) is expected in June 2026.

The second panel focused on the impact of immigration enforcement actions on healthcare. Senator Menjivar asked about increasing the use of mobile clinic medicine to serve immigrant and indigent communities. In response, panelists said that this option is being considered, but staff is concerned that the presence of a mobile health clinic may attract ICE action.

The final panel covered federal administrative changes affecting access to health care and data sharing and included Carlos Alarcón, Health and Public Benefits Policy Analyst from the California Immigrant Policy Center and Jim Mangia, Chief Executive Officer from St. John’s Community Health. Mangia advocated for new revenues to backfill the cuts made by the federal government. He also spoke to the challenges with immigrants not seeking healthcare out of fear. Alarcón spoke about legal residents who feared signing up for Medi-Cal due to the risk of data being shared with ICE and being targeted based on race. Following questions from legislators, Mangia did indicate that ICE had previously targeted mobile health clinics.

Several legislators talked about the overwhelming nature of the changes to Medi-Cal under HR 1. Assemblymember Bonta talked about the need to consider both revenue and cost saving solutions to address the expected gap in healthcare coverage. We anticipate numerous discussions and hearings around these issues which will impact the state budget and will have fiscal implications on the county.

July Revenues

The Department of Finance (DOF) and State Controller released their reports on July revenues as compared to the 2025 Budget Act.

Upcoming Hearings

Agendas are typically posted on the committee websites in the Assembly and Senate a few days prior to the hearings. To view hearings after they take place, you may access them in the Assembly or Senate media archives where they are generally available within a few hours of committee adjournment.

Monday, August 25, 2025, 10:00 a.m.
Senate Business, Professions and Economic Development
1021 O Street, Room 2100
Informational Hearing: Animal Care Services: Is There a Role for Human Healthcare Providers

Monday, August 25, 2025, 2:30 p.m.
Assembly Transportation
1021 O Street, Room 1100
Informational Hearing: Other States' Alternatives to the Gas Tax

Tuesday, August 26, 2025, 10:00 a.m.
Senate Elections and Constitutional Amendments
1021 O Street, Room 2100
Informational Hearing: Voter Identification in California

Wednesday, August 27, 2025, 1:00 p.m. to 5:00 p.m.
Assembly Select Committee on the Transportation Costs and Impact of the Low Carbon Fuel Standard
State Capitol, Room 444
Informational Hearing: Low Carbon Fuel Standard

Wednesday, August 27, 2025, 1:30 p.m.
Assembly Select Committee on Housing Finance and Affordability
State Capitol, Room 126
Informational Hearing: How Housing is Financed in California?

Thursday, August 28, 2025, 12:00 p.m.
Senate Transportation Subcommittee on Lossan Rail Corridor Resiliency
1021 O Street, Room 1200
Informational Hearing: Getting it Right - Advancing Rail Reforms in Southern California

Grant Opportunities

Below is a list of the latest grant opportunities released by the state. All opportunities for local jurisdictions may be found here.

Application Deadline: 9/22/25 00:00
Title: 2025-26 Statewide Technical Assistance for Charter Schools Funding Competition
State Agency / Department: CA Department of Education
Match Funding? No
Estimated Total Funding: $1,230,000
Funding Method: Reimbursement(s)
Application Deadline: 9/8/25 15:00

Title: 2025 JAG Training and Equipment Program
State Agency / Department: Board of State and Community Corrections
Match Funding? No
Estimated Total Funding: $30,650,563
Funding Method: Reimbursement(s) 

Application Deadline: 9/11/25 17:00
Title: 2026 Specialty Crop Block Grant Program
State Agency / Department: CA Department of Food and Agriculture
Match Funding? No
Estimated Total Funding:$23,000,000
Funding Method: Advances & Reimbursement(s)

Governor’s Press Releases

Below is a list of the governor’s press releases beginning August 13.

August 20: Governor Newsom announces appointments 8.19.25

• Kristin M. García, of Washington, D.C., has been appointed General Counsel at the California Health and Human Services Agency
• Maria Blaze, of San Jose, has been appointed to the California Community Colleges Board of Governors
• Leisa Biggers, of Los Angeles, has been appointed to the Commission on Judicial Performance

August 19: Governor Newsom pre-deploys additional resources to Southern California ahead of heat and red flag warnings

August 19: Independent Review: California leads the nation in combating antisemitism through statewide initiatives

August 19: With heat and fire weather incoming, Governor Newsom pre-deploys resources to Los Angeles County

August 19: Governor Newsom’s Delta Conveyance Project is single most effective action for California’s sustainable water future, study finds

August 19: Governor Newsom’s office reminds Bondi of ethical obligations for U.S. Department of Justice lawyers

August 18: Governor Newsom on introduction of ‘Election Rigging Response Act’ Legislative Package

August 18: Reporting shows reduced homelessness in communities throughout California

August 17: Governor Newsom filing FOIA request on Trump Administration’s misuse of federal agents at redistricting event

August 15: Governor Newsom announces appointments

• Kate Folmar, of Sacramento, has been appointed Chief of Strategic Communications at the California High-Speed Rail Authority.
• Alexandra Schultheis, of San Francisco, has been appointed to the California New Motor Vehicle Board
• Shirley Jones, of El Monte, has been appointed to the California New Motor Vehicle Board
• William Adams, of San Francisco, has been appointed to the California Exposition and State Fair Board of Directors
• Giselle Morris, of Hollister, has been reappointed to the California Youth Empowerment Commission
• Jocelyn Weinstock, of Los Angeles, has been reappointed to the California Youth Empowerment Commission
• Andrea Terrones, of Eastvale, had been reappointed to the Youth Empowerment Commission
• Adelina Ramirez, of San Diego, had been reappointed to the Youth Empowerment Commission

August 15: Five years since devastating 2020 fire siege: here’s how California is better prepared for catastrophic wildfire

August 14: Governor Newsom launches statewide response to Trump rigging Texas’ election

August 13: TOMORROW: Governor Newsom, California leaders to make major announcement in response to Trump’s gerrymandering attempts

Both the House and Senate were on August Recess this week. The White House addressed efforts to promote a peace agreement between Russia and Ukraine, federal law enforcement actions in Washington, D.C., and nationwide redistricting activities.

LEGISLATIVE BRANCH ACTIVITY

Redistricting Measures Introduced in California Legislature

Following efforts progressing in Texas to redraw Congressional maps mid-cycle to create five new Republican-leaning districts, California Governor Gavin Newsom has responded by introducing a three-bill package titled the Election Rigging Response Act.

The package would establish the maps to be used if the other components of the package pass, temporarily authorize the legislature to implement those maps until the Citizens Redistricting Commission (CRC) conducts its regular redistricting process in 2031, and call for the special election needed to override the CRC on November 4 of this year.

The bills would be triggered by Texas or other states passing a partisan gerrymander intended to increase Republican seats, and the current redraw of the map targets five California Republicans: Representatives LaMalfa, Kiley, Calvert, Issa, and Valadao.

Appropriators Contemplate Adding Earmarks to Potential Continuing Resolution

The Appropriations process is set to continue in September, when members return from August recess, but faces additional and growing hurdles as negotiations on funding bills continue. Generally, the House has drafted a funding package that is more in line with the President’s skinny budget request, while the Senate has advanced bipartisan bills with a more moderate fiscal approach.

These differences and the fact that Congress is behind schedule in passing the 12 required bills will more than likely require at least a short-term Continuing Resolution (CR) to be passed before the September 30 deadline. Historically, CRs have not included earmarks from member offices, known as Congressionally Directed Spending and Community Projects Funding, but there is growing momentum after the process collapsed last year to include them in any CR package this year.

EXECUTIVE BRANCH ACTIVITY

IRS Releases Initial Guidance on Energy Tax Credit Changes In HR 1, Will Hold Office Hours in September

On August 15, the Internal Revenue Service (IRS) published initial guidance on the changes made in HR 1, the One Big Beautiful Bill Act (OBBBA), to energy tax credits benefiting wind and solar facilities. The OBBBA phases out or cancels the Production and Investment credits (§ 45Y and 48E) beginning in July of 2025.

Following passage of the OBBBA, the President signed Executive Order 14315, titled Ending Market Distorting Subsidies for Unreliable, Foreign-Controlled Energy Sources, which pushed the Treasury to narrowly define implementation requirements to minimize the number of projects that would be eligible to claim the credits.

The IRS will hold office hours on September 17 for credit recipients covering elective pay and transferability, given the restrictions in the new guidance.

Department of Commerce Announces Increased Steel and Aluminum Tariffs

The Department of Commerce’s (Commerce) Bureau of Industry and Security has added 407 product categories to the list of derivative steel and aluminum tariffs. The changes will add a 50% tariff on the quantity of steel and aluminum in a variety of imported products. Most notably home appliances, furniture, wind turbines, EV motors, and the metal in miscellaneous other products like aerosol cans.

Orange County Delegation Press Releases

• Lou Correa – August, 14 2025: MEMO: Is Social Security Changing? Here’s what to know. | U.S. Congressman Lou Correa of California
• Lou Correa – August, 14 2025: MEMO: Tax Credits Soon to Expire: What to Know | U.S. Congressman Lou Correa of California
• Dave Min – August 13, 2025: Rep. Dave Min, Co-Chair of SEEC Building Resilient Housing Task Force, Slams HUD, USDA Effort to Increase Energy Costs for Homeowners and Renters | Representative Dave Min
• Derek Tran – August 15, 2025: Representative Derek Tran Shows Support for Local Businesses, Meets with Community Leaders During August Recess | Representative Derek Tran
• Derek Tran – August 14, 2025: Representative Tran Visits Local Health Care Providers, Addresses Concerns Regarding Major Health Care Funding Cuts | Representative Derek Tran
• Derek Tran – August 13, 2025: Representative Tran Helps Introduce Legislation To Assess True Costs Of Trump’s Tariffs on Everyday Goods | Representative Derek Tran
• Alex Padilla – August 18, 2025: Padilla Statement on Trump Attacking Mail-in Voting - Senator Alex Padilla
• Alex Padilla – August 15, 2025: Padilla, Schumer, Wyden Urge IRS to Maintain Vital Multilingual Services for Taxpayers - Senator Alex Padilla
• Adam Schiff – August 13, 2025: NEWS: Sen. Schiff Demands Information on FCC’s Conditions for Approving Paramount-Skydance Merger
• Adam Schiff – August 18, 2025: NEWS: Sen. Schiff Demands Information on FCC’s Conditions for Approving Paramount-Skydance Merger
• Adam Schiff – August 15, 2025: WATCH: Sen. Schiff Joins CNN to Discuss Unsuccessful U.S.-Russia Summit, Donald Trump’s Pre-Concessions to Putin and Abandonment of Ukraine
• Adam Schiff – August 15, 2025: NEWS: Sen. Schiff Demands Army Corps of Engineers Explain Use of Taxpayer Funds for Vice President’s Birthday
• Adam Schiff – August 14, 2025: ICYMI: Sen. Schiff Tours San Diego Food Bank, Calls Out Harmful Impact of Trump’s Food Assistance Cuts

Legislation Introduced by the Orange County Delegation

No Legislation was introduced by the Orange County Delegation this week.

Friday 08/22

Homelessness is finally dipping across California. These Bay Area counties saw double-digit declines -- Across 15 counties that conducted consecutive counts in 2024 and 2025, all but two reported declines in their overall homeless populations. Three Bay Area counties — Contra Costa, Santa Cruz and Sonoma — recorded the state’s largest drops with decreases of more than 20%. Maggie Angst, Hanna Zakharenko in the San Francisco Chronicle -- 08/22/25

California voters will decide redistricting in November, escalating battle with Trump and Texas -- Ratcheting up the pressure in the escalating national fight over control of Congress, the California Legislature on Thursday approved a November special election to ask voters to redraw the state’s electoral lines to favor Democrats and thwart President Trump’s far-right policy agenda. Laura J. Nelson, Seema Mehta and Melody Gutierrez in the Los Angeles Times Sophia Bollag, Sara DiNatale in the San Francisco Chronicle Lia Russell in the Sacramento Bee Grant Stringer in the San Jose Mercury Linh Tat and Kaitlyn Schallhorn in the Orange County Register Blake Jones Politico Laurel Rosenhall in the New York Times Maeve Reston and Patrick Svitek in the Washington Post -- 08/22/25

Thursday 08/21

California cities lack unified response on homeless encampments -- When it comes to clearing homeless encampments, California cities are governed by a patchwork of very different policies. Marisa Kendall Calmatters -- 08/21/25

Denser housing near transit stops? L.A. City Council opposes state bill -- The council voted 8 to 5 to oppose state Senate Bill 79, which seeks to mitigate the state’s housing shortage by allowing buildings of up to nine stories near certain train stops and slightly smaller buildings near some bus stops throughout California. Noah Goldberg in the Los Angeles Times -- 08/21/25

Wednesday 08/20

How California plans to boost EVs with no federal help -- From President Trump’s first day back in office, he vowed to unravel California’s sway over the nation’s auto-emission standards by eliminating the state’s zero-emission mandates. He made good on that promise in the first several months of his second term. Tony Briscoe in the Los Angeles Times Rob Nikolewski in the San Diego Union Tribune -- 08/20/25

Tuesday 08/19

Orange on the brink? Consultants outline plan to avoid potential bankruptcy -- City leaders in Orange are racing the clock, said consultants hired by the city to evaluate the city’s finances. Without swift action, the city could face bankruptcy in roughly three years. Hanna Kang in the Orange County Register -- 08/19/25

Thousands of Cal State students require housing. But can the university system meet the need? -- California State University added more than 17,000 new beds for student housing between 2014 and 2024. Studies find on-campus housing improves students’ academic outcomes. State officials are weighing whether to put a 2026 university construction bond measure before voters. Amy DiPierro EdSource in the Los Angeles Times -- 08/19/25

Monday 08/18

How the ‘science of reading’ bill could change California schools -- Educators and state leaders argued over the best way to teach students how to read, a battle often referred to as California's "reading wars." Molly Gibbs in the San Jose Mercury -- 08/18/25

Gavin Newsom warms to Big Oil in climate reversal -- After years of cracking down on California’s oil industry, Gov. Gavin Newsom and legislative Democrats are moving to get Kern County wells pumping again to avoid soaring gasoline prices. Alexei Koseff, Alejandro Lazo and Maya C. Miller Calmatters -- 08/18/25

Weekend 08/17-08/16/25

Early results show Prop 36 struggling with ‘mass treatment’ pledge for homeless drug offenders -- A tough-on-crime measure California voters overwhelmingly approved last year promised to usher in an “era of mass treatment” for the tens of thousands of homeless drug users across the state. But so far in the Bay Area, Proposition 36 has only succeeded in compelling a few dozen people into addiction or mental health programs. Ethan Varian in the San Jose Mercury -- 08/17/25

In high-tech race to detect fires early, O.C. bets on volunteers with binoculars -- As California turns to satellite imagery, remote cameras watched by AI and heat detection sensors placed throughout wildlands to detect fires earlier, one Orange County group is keeping it old-school. Noah Haggerty in the Los Angeles Times -- 08/16/25