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

This is the last week of the legislative session and Tuesday night negotiations on a number of high-profile issues wrapped up. Language on the extension of cap-and-trade, the wildfire mitigation fund, and budget items were released late Tuesday night or Wednesday morning, indicating that the legislature will work into Saturday to meet the 72-hour in-print rule prior to voting on bills and sending them to the governor. We will provide additional information on additional high-profile items and outcomes in next week’s update.

September 2025 Budget Action Package

The legislature is scheduled to pass a budget bill junior and a number of budget trailer bills prior to adjourning the 2025 legislative session on Saturday, September 13. Below is an outline of major provisions of those measures relevant to the county.

AB 105 (Gabriel) Budget Acts of 2021, 2023, 2024, and 2025. This measure includes appropriations for the Proposition 4 climate bond, funding to respond to federal H.R. 1 changes, funding for immigrant legal services, and greenhouse gas fund expenditures among other items, totaling $68.8 million General Fund above the June budget package.

2025-26 Proposition 4 Climate Bond Expenditures. $3.287 billion from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (Proposition 4):

• $1.2 billion for Safe Drinking Water, Drought, Flood, and Water Resilience
• $416 million for Wildfire and Forest Resilience
• $279 million for Coastal Resilience
• $110 million for Extreme Heat Mitigation
• $390 million for Biodiversity and Nature-Based Solutions
• $153 million for Climate Smart Agriculture
• $466 million for Park Creation and Outdoor Access
• $275 million for Clean Air and Energy

H.R. 1 Response. Up to $254.8 million ($102.7 million General Fund) for costs associated with responding to the federal government’s enactment of H.R. 1 and other federal policy changes including:

• $53.6 million ($26.2 million General Fund) to resource multiple, multi-year activities that are part of the administration's CalFresh payment error rate mitigation strategy.
• Up to $30 million ($15 million General Fund) for CalFresh automation to further address the CalFresh payment error rate.
• $20 million General Fund for emergency food bank support, augmenting the $60 million General Fund provided for food banks in the June 2025 Budget Act.
• $40 million ($20 million General Fund) for county administration for H.R. 1 provisions related to Able-Bodied Adults Without Dependents, who will imminently experience new work requirements.
• $294,000 General Fund one-time for the California Health and Human Services Agency to fund an attorney for the significant increase in workload.
• $1 million special fund to support California’s application for the Rural Health Transformation program.
• $15 million special fund to defray costs of continuing gender-affirming care coverage.
• $1.2 million special fund for healthcare reporting for the minimum staffing standards for long-term care facilities and Medicaid Institutional Payment Transparency Reporting Final Rule.
• $2.5 million ($1.25 million General Fund) for technical assistance to comply with citizen verification activities.
• $20 million General Fund to the Governor’s Office of Business and Economic Development to promote travel and tourism.
• $71.2 special fund for reproductive health.

Other Major Provisions

• $13.75 million for services to immigrant communities, including $8.75 million for specified immigrant legal services and $5 million General Fund to the Immigration Services Program, administered by the California Department of Social Services, which augments the $10 million that was provided above baseline funding in the 2025 Budget Act.
• Increases support for the California State Library by increasing the amount of funds available to the library from a federal grant that was recently re-instated.
• Directs the Department of Finance to examine loan or financing options to assist local transit agencies and local government entities in Los Angeles County facing responsibilities due to the January 2025 wildfires.

Greenhouse Gas Reduction Funds. $540 million Greenhouse Gas Reduction funds in 2025 for the following purposes:

• $368 million to the State Transportation Agency for transit operations and capital consistent with SB 125 (2023).
• $40 million to the Energy Commission for medium and heavy duty zero-emission vehicle infrastructure, including hydrogen and electric.
• $7 million to the Department of Food and Agriculture for livestock methane reduction.
• $100 million to the Air Resources Board for AB 617.
• $25 million to the Air Resources Board for district based Clean Cars for All programs.

SB/AB 144 Health

State Immunization Guidance

• Establishes the list of immunizations, items, and services recommended by the United States Preventive Services Task Force, the Advisory Committee on Immunization Practices, and the Health Resources and Services Administration, in effect on January 1, 2025, as the baseline recommendations for California.
• Provides that the California Department of Public Health (CDPH) may modify or supplement the baseline recommendations in consultation with medical and scientific organizations, including the American Academy of Pediatrics, the American College of Obstetricians and Gynecologists, and the American Academy of Family Physicians.
• Requires CDPH to publish the recommendations of immunizations, items, and services, and publish any updates, modifications, or supplements adopted, which become effective upon publication.
• Updates related provisions for health care benefit coverage, professional and occupational licensing, and school immunization notification statutes to reflect the implementation of state immunization guidelines.
• Provides liability protections for persons prescribing, dispensing, ordering, furnishing, or administering a vaccine required by state law or under specified circumstances, except in cases of willful misconduct or gross negligence.

California Department of Public Health

• $18 million is allocated for state operations out of the $65 million appropriated to fund services, programs, or initiatives funded by the AIDS Drug Assistance Program (ADAP) Rebate Fund for which federal funding has been reduced or eliminated as a result of federal policy actions.
• $1.6 million is allocated for state operations out of $9 million appropriated to fund state and local disease intervention specialists.

Department of Health Care Services

• Exempts foster youth and former foster youth with Unsatisfactory Immigration Status from various service limitations in the Medi-Cal program, including the enrollment freeze and monthly premium slated to take effect in future years.
• Extends the Medi-Cal medical interpretation study and pilot project for limited English proficient beneficiaries by one year, to July 1, 2026, and makes the original $5 million appropriation available through June 30, 2026.

Additional Key Provisions

• Establishes the Abortion Access Fund to provide funding for abortion services and authorizes the Department of Health Care Access and Information to distribute funding through grants and contracts.
• Exempts health care practitioners licensed in another state, territory, or country from certain healing arts licensure, certification, or registration requirements, while providing professional services at Olympic and Paralympic activities, if the health care practitioner has been invited by the Los Angeles Organizing Committee for the 2028 Olympic and Paralympic Games to provide those services, as specified.
• Exempts out-of-state licensed or certified Emergency Medical Services personnel from California licensure requirements when authorized to provide services at sanctioned sites for the 2028 Olympic and Paralympic Games, as specified.

SB/AB 146 Human services

• Creates a new complaint procedure with due process requirements for the Housing and Homelessness programs administered by the California Department of Social Services (CDSS), including the CalWORKs Housing Support Program, the Home Safe Program, the Bringing Families Home Program, and the Housing and Disability Income Advocacy Program.
  • Requires counties opting to participate in any of those programs to have written program policies and to implement and conduct county-level complaint resolution processes.
  • Requires the CDSS to develop program guidance on a procedure for counties to inform recipients in writing of housing-related services and financial assistance being provided to the recipient in individualized written housing plans.
  • Provides program recipients with the right to file a request with CDSS for a state administrative hearing for county actions resulting in a reduction or discontinuance of housing-related services and financial assistance under specified circumstances.
  • Requires the CDSS to consult with the County Welfare Directors Association of California, counties, and advocates for program applicants and recipients on the development of these processes and authorizes the CDSS to implement and administer these provisions by means of all-county letters or similar written instructions.
• Deletes the requirement that CDSS complete final policy guidance relating to the semiannual report form by August 15, 2025. The delay is to allow for an assessment of how this change could impact the state’s payment error rate.
• Authorizes CDSS, when necessary to reduce the CalFresh payment error rate and until October 1, 2027, to implement and administer the CalFresh program by means of all county letter and emergency regulations. Requires CDSS to engage in stakeholder consultation starting in September 2025 and continuing through the duration of the multiyear activities.
• Delays the implementation of the CalFresh Pre-Release effort by two years, changing the date for the associated workgroup establishment from February 1, 2026 to February 1, 2028 and the first date for the workgroup’s recommendations from August 31, 2027 to August 31, 2029. This policy allows for preenrollment of otherwise eligible applicants for the CalFresh program to ensure that an applicant’s benefits may begin as soon as possible upon reentry of the applicant into the community from state prison or county jail. The delay was requested to allow for CDSS to focus statewide effort on the CalFresh payment error rate.

SB/AB 149 Public resources trailer bill

Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (Proposition 4). Authorizes state agencies to adopt emergency regulations for developing and adopting program guidelines and selection criteria for programs under Proposition 4.

Los Angeles Olympics: Coastal Act Exemption. Exempts all temporary development undertaken for the 2028 Olympic and Paralympic Games from the requirement under the California Coastal Act to obtain a coastal development permit, as specified.

Los Angeles Olympics: California Environmental Quality Act (CEQA) Exemption. Exempts from CEQA activities or approvals necessary for the bidding, hosting, or staging of, and funding of the upcoming 2028 Olympic and Paralympic Games; and exempts from CEQA the construction of temporary facilities for the 2028 Olympic and Paralympic Games.

Invasive Mussels. Appropriates $20 million from Proposition 4 to address invasive mussel infestations, including the Golden Mussel.

SB/AB 156 Labor. Among other provisions, the trailer bill makes multiple changes related to providers in the In-Home Supportive Services (IHSS) program, including streamlining the process toward reaching collective bargaining agreements, codifying into state law overtime payment requirements required by federal law, and permitting alternatives to avoid disruption of payroll and deduction processing for the payoff of IHSS provider wages.

SB/AB 157 Public safety

• Updates the Community Corrections Performance Incentives Fund grant methodology (SB 678, 2009). The updated formula includes a performance maintenance payment and a performance incentive payment, provides a minimum of $200,000 to each county, and updates various definitions and reporting requirements.
• Clarifies that specified employees within the Board of State Community Corrections have access to local detention facilities’ records to fulfill their mandate to review in-custody deaths, pursuant to Chapter 306, Statutes of 2023.

SB/AB 158 Land use

• Requires the Department of Housing and Community Development to prepare to administer Round 7 of the Homeless Housing, Assistance, and Prevention program with the goal that the initial Round 7 disbursement will be available to grantees meeting the statutory provisions, beginning September 1, 2026, subject to specified criteria.
• Modifies the deadline for a public agency to approve or disapprove housing projects that are exempt from CEQA from 30 days after the conclusion of tribal consultation process to 30 days from the later of :
  • The conclusion of the tribal consultation process under AB 130 (Chapter 22, Statutes of 2025) or
  • The period specified under the Housing Accountability Act.

SB/AB 159 Personal Income Tax Law: Corporation Tax Law: exemptions: wildfire

SB/AB 162 Elections. Makes local elections held on November 4, 2025, subject to the same deadlines as the statewide special election held on that date.

• Makes a clarifying technical change to allow for the allocation schedule to be provided directly to the State Controller, to remit payments to counties to administer the November 4, 2025 Special Election.
• Provides that notwithstanding specified provisions of the Elections Code, results from any regular or special local election called on or before August 8, 2025, and held on November 4, 2025, shall not be certified until at least 28 days after the election. Aligns the deadline for voters to resolve issues with vote by mail (VBM) ballots in these local elections with the deadline for the statewide special election.

Trailer bills that are not specific to county operations included in the package are the following:

• SB/AB 147 Education finance: education omnibus trailer bill
• SB/AB 148 Higher education budget trailer bill
• SB/AB 151 Early childhood education and childcare
• SB/AB 153 Transportation budget trailer bill
• SB/AB 154 Greenhouse gases: climate corporate accountability: climate-related financial risk: regulations: California Environmental Quality Act exemption
• SB/AB 155 Governor’s Office of Business and Economic Development: California Civic Media Program
• SB/AB 161 State employment: state bargaining units

Senate Transportation Subcommittee Holds Informational Hearing on LOSSAN Rail

The Senate Transportation Subcommittee on LOSSAN held an informational hearing recently on, “Getting it Right – Advancing Rail Reforms in Southern California.” Chaired by Senator Catherine Blakespear (D-Encinitas), and attended by Senators Bob Archuleta (D-Norwalk), Sabrina Cervantes (D-Riverside), Maria Elena Durazo (D-Los Angeles), and Laura Richardson (D- Inglewood), the hearing featured three panels of experts.

The 351-mile LOSSAN line is used by passenger and freight trains as well as the military. Pre-pandemic, it served 8.3 million annual boardings, with 70 daily freight trains that moved an estimated $1 billion in goods along the corridor. Landslides and damage from waves have cost taxpayers at least $37 million since 2021 and caused numerous closures of the rail line, some lasting for months and preventing train travel between San Diego and northern points. While ridership has rebounded somewhat, it has yet to reach its pre-pandemic levels. Another major consideration is the upcoming World Cup and Olympics which are expected to rely heavily on transit provided by the corridor.

The first panel, “State of the LOSSAN Rail Corridor,” included Chad Edison, Chief Deputy Secretary of Rail and Transit at CalSTA and Kyle Gradinger, Chief of the Division of Rail at Caltrans.

Edison testified that CalSTA continues to add new seating and make other preparations for the Olympics. They are also working to improve the consumer payment experience, including reservations and seat assignment options. Staff resources are also being directed to implementation of SB 1098 from last year. Working together with stakeholders, the first phase of the report will include recommendations in nine key areas with the goal of making the corridor stronger and more resilient in the future. The final report is expected in January 2026. He also highlighted the need to study long term solutions to corridor resilience issues around San Clemente and Del Mar to better understand the benefits of investing in these expensive projects. He also committed to meeting the Coastal Commission’s long term railroad adaptation study requirements by January 2034.

Gradinger detailed the first completed step of the Corridor Identification and Development Plan (CIDP), the Federal Railroad Administration's new program to advance rail corridor planning and develop a defined pipeline of capital projects for federal funding. They have completed step one for all five corridors including the preparation of scope of work for step two, the service development planning effort. They are currently awaiting publication of a Notice of Funding Opportunity (NoFO) to begin the next step (expected in October or November of this year). The service vision is expected to unify the Pacific Surfliner, Metrolink, Coaster Passenger trains, as well as freight railroads. Specific projects will then be identified to advance the service vision. Ultimately these projects will be included in the federal funding pipeline, or an annual list that will be reviewed by congress for funding.

Gradinger emphasized the need for focused studies to support funding requests. He specifically mentioned a long-term railroad adaptation study, a condition of the Coastal Commission’s emergency coastal development permit that was granted on April 10 for emergency repairs along the San Clemente coast. The requirement includes future recommendations for rail service through Orange County by January 2034. The work is expected to drive a business case for railroad realignment.

Both Edison and Gradinger agreed with Senator Blakespear that frequency and reliability are the cornerstones of building and maintaining ridership on the rail line. Senator Archuleta emphasized the need to focus on public safety and reliability. Senator Blakespear commended the planned improvements in the payment system and fare box recovery. Edison said that fare box recovery continues to improve as ridership returns.

The second panel, “From Plans to Passengers: Delivering Projects and Services that Grow Ridership” included Philip Mark Plotch, Principal Researcher & Senior Fellow, Eno Center for Transportation; Gillian Gillett, Manager, California Integrated Mobility Program, Caltrans; Darbi Berry, Director, San Diego Regional Climate Collaborative, University of San Diego; and Kari Edison Watkins, PE, PhD, Professor of Civil and Environmental Engineering, UC Davis

Plotch from the Eno Center talked about transit in the United States and key lessons learned from their research. He testified that the environmental review by the government entities tend to be understaffed and this slows transportation projects and makes them more expensive. Project management can also slow projects down, often due to a lack of engineers, and staffing capabilities. He also talked about the tension between using staff versus using consultants. He brought up the issues of documenting mistakes throughout the project. Most agencies don’t do this for legal and other reasons, but doing so would be beneficial for shared learning. He recommended that transit agencies better integrate across a region to improve customer experiences.

Gillett discussed her work improving consumer experience on transit. This includes trip planning through apps like Apple and Google. The state works with transit agencies to ensure these apps have data from every transit agency. Real time GTFS is used to compare the transit schedule versus when the transit is actually going to arrive. Gillett highlighted improved payment options with credit and debit cards. The agency tries to ensure that discounts for seniors and those with disabilities are also seamless. The initiatives are all intended to improve ridership in addition to the customer experience including where the product is, how consumers find it, and what it costs.

Berry discussed the regional and big tent approach of the San Diego Regional Climate Collaborative. Their goal is to build regional capacity and include transit in discussions around land use including housing.

Watkins talked about transit in general and some larger lessons learned from her research. Her research looked at reduced ridership even leading up to COVID. The more services that exist in a corridor, the more ridership will build. Long delays and gaps in a schedule inevitably lead to reduced ridership. She highlighted the dual goals of providing mobility and accessibility in transit. She talked about the use of discount fare programs to increase ridership. She emphasized the use of group discounts, saying that when 3-4 people travel somewhere, the transit ride is in direct price competition with the cost of that group driving in a car. She also addressed the issue of freight and passenger rail lines using the same infrastructure. She recommended passenger rail prioritization. She said reliability and speed are cornerstones of building ridership, including rail station design to ensure smooth transfers. She also highlighted the direct connection between housing (where it's built) and transportation. In closing she emphasized frequency, reliability, safety, and access to information as keys to building ridership.

In a discussion with legislators about unique ideas to grow ridership, Gillett talked about the concept of fare capping, where a regional transit agency would cap the amount it charges a person on any one day based on the use of their debit or credit card.

The third and final panel, “Making it Work: Aligning Governance, Funding and Service Goals,” included Juan Matute, Deputy Director, UCLA Institute of Transportation Studies; Genevieve Giuliano, Public Policy Professor, USC Price School of Public Policy; and Frank Jimenez, Senior Fiscal & Policy Analyst, Legislative Analyst Office.

In his testimony, Matute raised the idea of the state wholly owning the railroads. He highlighted the use of open loop payment systems that would require coordination among transit agencies. He expanded this idea to talk about an association approach that would allow better agency coordination around operability and data. This could include passenger, freight and national security related rail.

Jimenez reviewed a handout provided by the LAO that details the finances of the LOSSAN corridor. He highlighted the diverse services provided in the LOSSAN, funding for which comes from a mix of federal, state, local, and fare revenues. The LAO made a number of options on how the Legislature could provide additional funding to LOSSAN including:

• Provide one-time funding to address short-term needs or advance key projects. The Legislature could provide one-time funding to temporarily address near-term revenue shortfalls or support high-priority infrastructure improvements—such as those related to responding to the impacts of sea-level rise.
• Leverage ongoing programs to promote rail investments that align with State goals. The Legislature could adjust existing ongoing programs or establish new ones with additional funding to incentivize activities that align with statewide goals. For example, if the state wanted to encourage agencies to expand services, it could allocate some portion of existing or new formula funding based on ridership levels or on the amount of transit and rail services provided.
• Consider various fund sources for increasing support. The Legislature could consider various fund sources for increasing support for rail. This could include directing additional funding from transportation special funds, the General Fund, or the Greenhouse Gas Reduction Fund. The Legislature also could consider raising new revenues such as through bonds, transportation taxes and fees, or broad-based taxes.
• Compete with other state funding priorities. Depending on which funding source the Legislature were to use, providing additional funding for rail would mean less funding available for other state priorities within the transportation sector and/or other areas of the budget. Providing funding could be particularly difficult given the projected General Fund deficits over the next few years. Additional General Fund support would require the state to identify additional budget solutions, and the state will likely also be relying on special funds to help address its core priorities.

In her presentation, Giuliano talked about challenges and opportunities within the corridor. She highlighted some of the threats to the rail line including federal cuts, environmental factors, fare recovery issues, and major investments needed for capital projects. She asked if consolidated services could reduce costs? She also raised the idea of shifting funding from high speed rail to LOSSAN, as it would have a bigger impact on reduced green gas emissions.

In a discussion with Senator Blakespear, Giuliano talked about the environmental process and trying to achieve the objective of consensus building for major capital projects. Giuliano essentially opined that consensus was not possible when there would inevitably be some negative impacts to some group from any major project. Matute also opined on the issue, saying that the prioritization of local concerns can make overall corridor transit less reliable and increase costs to the point of infeasibility.

A number of reports are expected in the coming months that will continue the conversation including the LOSSAN report required by SB 1098 (early 2026), as well as one from the State Transit Transformation Task Force which will conclude its work in the next two months.

Grant Opportunities

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

None this week.

Governor’s Press Releases

Below is a list of the governor’s press releases beginning September 3.

September 10: ICYMI: California kicks off celebrations marking its 175th year of statehood!

September 10:‘Trump traffic jam’: Republicans slash popular clean air carpool lane program

September 10: Governor Newsom announces continued state financial support for Bay Area transit

September 9: Trump’s fires: California fills federal void as mega-fires spread on neglected federal lands

September 9: Governor Newsom reaches agreement with Artesia on violations of state housing law, city ordered to create plan for thousands of new homes

September 9:California firefighters join forces with UC researchers to study cancer risk amid Trump cuts

September 9: On 175th anniversary of statehood, Governor Newsom delivers 2025 State of the State letter to California Legislature

September 9: Hollywood. Silicon Valley. Coachella. Tacos. Beaches. Need we say more? Happy 175th birthday, California!

September 9: Governor Newsom proclaims California’s 175th Anniversary

September 8: El Gobernador Newsom emite un comunicado sobre la decisión de la Corte Suprema que apoya los arrestos por motivos raciales en el sur de California

September 8: Welcome back! Visa brings flagship global conference back to San Francisco from Texas

September 8: Governor Newsom issues statement on the Supreme Court’s ruling to uphold racially motivated immigration arrests in Southern California

September 8: Statement from Governor’s Office on transit funding

September 7: Governor Newsom and Acting Governor Kounalakis issue statements, lower flags, and announce the posthumous induction of John Burton into the California Hall of Fame

September 5: Governor Newsom announces Norwalk to overturn illegal homeless shelter ban as part of settlement

September 5: CalGuard’s Counterdrug Task Force back to full strength, seizes $3.3 million in illicit fentanyl

September 4: Hawaii to join West Coast Health Alliance with California, Oregon, and Washington

September 4: What they are saying: Leaders throughout the state are applauding Governor Newsom’s ongoing strategies to reduce homelessness

September 4: Trump’s illegal National Guard deployment in Los Angeles cost taxpayers $120 million

September 4: Governor Newsom’s Clean California effort reaches major milestone: 3 million+ cubic yards of litter removed, 600+ public art projects installed

LEGISLATIVE BRANCH ACTIVITY

Appropriations Focuses On a Continuing Resolution

As Congress approaches the September 30 end of Fiscal Year (FY) 2025, an agreement to fund the government past the end of the month remains elusive. Both sides are posturing ahead of the impending deadline, as Congress has passed the window for committee staff to execute any negotiated framework.

The current debate is centered on the length and anomalies in any continuing resolution (CR), a bill that would temporarily extend current funding levels and historically has not included earmarks. The White House is seeking a longer-term CR through January while Senate leadership has discussed a two-month version. Separately, House Speaker Mike Johnson has sought to put three of the appropriations bills into a conference committee, the traditional but not recently used mechanism for the House and Senate to resolve differences in their legislation. The House Appropriations Committee also held full committee markups of their Labor, Health and Human Services; and Commerce, Justice, Science, and Related Agencies bills.

Democrats are still debating a strategy for addressing any potential funding deal, as any bill would require at least 7 Senators from the minority to pass. They are primarily concerned that partisan rescissions packages could undo any bipartisan compromises made or that the Administration would impound or fail to faithfully execute the appropriations bills. Republicans are setting up a repeat of their strategy from this March, where they put forward a relatively ‘clean’ CR and let divisions in the Democratic party permit the CR to pass.

While the posturing has begun and negotiations are ongoing, it is likely everyone will adopt firmer positions next week before heading home for a weeklong district work period on September 19.

House Agriculture Committee Holds Hearing on SNAP Benefits Post One Big Beautiful Bill

On September 9, the House Committee on Agriculture held a hearing on “Exploring State Options in SNAP.” The HR 1, the One Big Beautiful Bill Act (OBBBA) made significant modifications to the Supplemental Nutrition Assistance Program (SNAP), burden shifting a variety of costs from the federal government onto states and counties who administer the benefits.

Witnesses at the hearing included a representative of the National Association of Counties. Their testimony emphasized some policy discrepancies in the OBBBA, which included work requirement waivers in jurisdictions with high unemployment and adverse economic conditions and a lack of current compliance guidelines from the Department of Agriculture (USDA) despite noncompliance adding to a state’s payment error rate.

States with a payment error rate between 10-13.35% in FY26 will face a 15% cost share on benefits, and the federal share of administrative costs was reduced by the OBBBA from 50% to 25%. States with a payment error rate greater than 13.35% will have the benefits cost share delayed until 2029. The State of California has not addressed the budgetary impact of these changes. Under the OBBBA, the FY26 payment error rate will determine the first two years of the benefits cost share, California last reported a roughly 11% payment error rate.

Townsend Public Affairs is engaging with the National Association of Counties on behalf of the County of Orange to advance a legislative strategy to mitigate the impacts the cost share changes will have on the County.

EXECUTIVE BRANCH ACTIVITY

EPA Advances Permitting Reform Effort for Power Generators

On September 9, the Environmental Protection Agency (EPA) announced new guidance on permitted construction activities before a New Source Review (NSR) Preconstruction Air Permit has been issued pursuant to the Clean Air Act. New allowable activities are not related to air emissions, though substantial changes to the guidance will likely require EPA finish rulemaking to implement.

EPA Administrator Lee Zeldin committed to initiating rulemaking to modify the definition of “Begin Actual Construction” in order to clarify construction activities not requiring NSR Preconstruction permits and distinguish between emitting and non-emissions-related activities. The EPA further stated this change is needed to address increased electricity demand from data centers processing artificial intelligence (AI) requests.

Permitting reform has been an Administration priority and is gaining traction in Congress as the bipartisan HR 4776, the Standardizing Permitting and Expediting Economic Development Act or the “SPEED Act” was reintroduced in July. It is likely to pass through the House Committee on Natural Resources this fall.

Supreme Court Allows Rules on Immigration and Customs Enforcement Activities

On September 8, the Supreme Court granted a stay in a case where the previous lower court order halted Immigration and Customs Enforcement (ICE) from temporarily detaining suspected noncitizens only on the basis of their ethnicity and other potentially protected characteristics.

The petitioners initially won an injunction in a lower court that prevented ICE from questioning individuals in Los Angeles based on their ethnicity, accent, or employment as day laborers or farm, construction, and carwash workers. The petitioners argued this was racial profiling and initially halted the types of immigration enforcement activities ICE was performing across Southern California.

While the decision was unsigned, a concurring opinion by Justice Kavanaugh argued that the fourth amendment allows for officers to temporarily detain a suspect based on “reasonable suspicion” and that the stops based on location, type of work, and language ability were reasonable enough to give ICE officers authority to request documentation proving an individual’s status in the US.

The Administration is likely to quickly resume immigration raids in Los Angeles again, as they have expanded those activities in other jurisdictions since the initial injunction was granted. The stay did not cover the substance of the case, which will continue to proceed through the courts.

HHS Releases MAHA Commission Recommendations

On September 9, Department of Health and Human Services Secretary Robert F. Kennedy announced the release of a Make America Healthy Again Administration (MAHA) report titled, the Make Our Children Healthy Again Strategy.

The report makes no additional restrictions and does not immediately impact federal regulations on vaccines, infant formula, pesticides, or other agricultural production practices. The report does call for additional research on consumer chemical exposure, nutrition and diet research, water fluoridation, and the childhood vaccine schedule.

Water fluoridation has been a priority of Secretary Kennedy, who opposes the practice, the Secretary has previously indicated his desire to initiate agency rulemaking in opposition to local tap water fluoridation.

Orange County Delegation Press Releases

• Mike Levin – September 8, 2025: Rep. Mike Levin Reintroduces Bipartisan Bill to Support Schools Serving Military and Tribal Communities | U.S. Congressman Mike Levin
• Young Kim – September 4, 2025: Rep. Young Kim Aids Bill to Prevent Soaring Health Care Premiums for Thousands of Californians - Congresswoman Young Kim
• Dave Min – September 5, 2025: STATEMENT: Rep. Dave Min Condemns Detainment of Hundreds of South Koreans At Hyundai E.V. Plant | Representative Dave Min
• Dave Min – September 5, 2025: Rep. Dave Min Announces $3.2 Million in Federal Grants for Disease Research at University of California, Irvine (UCI) | Representative Dave Min
• Dave Min – September 5, 2025: NEW: Orange County Register: Rep. Dave Min Meets With Survivors of Jeffrey Epstein’s Abuse | Representative Dave Min
• Dave Min – September 5, 2025: Rep. Min Speaks in Support of His Bipartisan Coastal Protection Legislation During Committee Hearing | Representative Dave Min
• Derek Tran – September 4, 2025: Representative Tran Rejects Funding Bill that Increases Energy Costs for American Families | Representative Derek Tran
• Alex Padilla – September 9, 2025: Padilla, Schiff Lead 17 Senators in Amicus Brief Fighting Trump Abuse of Military Deployments - Senator Alex Padilla
• Alex Padilla – September 8, 2025: Padilla Supports Legislation to Grant D.C. Officials Full Control Over Its National Guard, Police - Senator Alex Padilla
• Alex Padilla – September 8, 2025: Padilla Statement on Supreme Court Ruling Paving the Way for Racial Profiling in Los Angeles Immigration Enforcement - Senator Alex Padilla
• Alex Padilla – September 7, 2025: Padilla Statement on the Passing of Longtime California Political Leader John Burton - Senator Alex Padilla
• Alex Padilla – September 5, 2025: Padilla, Merkley, Cortez Masto, Peters Urge Smithsonian Secretary to Stand Strong Against Trump’s Attacks on Museums - Senator Alex Padilla
• Alex Padilla – September 4, 2025: Padilla Calls on RFK Jr. to Resign Over Attacks on Vaccines and Science-Based Public Health Recommendations at CDC - Senator Alex Padilla
• Alex Padilla – September 4, 2025: Padilla, Colleagues Investigate Trump Administration’s Betrayal of Immigrant Service Members, Veterans, Military Families - Senator Alex Padilla
• Alex Padilla – September 4, 2025: Padilla, Tillis Applaud Senate Passage of Bipartisan Bill to Help Find Missing Persons on Federal Land - Senator Alex Padilla
• Alex Padilla – September 3, 2025: Padilla, Young Introduce Bipartisan Legislative Package to Advance American Biotech, Agriculture, and National Security Interests - Senator Alex Padilla
• Adam Schiff – September 10, 2025: NEWS: Sen. Schiff, Senate Democrats Urge Trump Admin to Balance Technological Innovation with Longstanding Environmental Protections in Permitting of AI Data Centers
• Adam Schiff – September 9, 2025: WATCH: On MSNBC, Sen. Schiff Calls Out Trump Administration’s Continued Denials in Epstein Scandals, Talks Trump’s Retribution Campaign
• Adam Schiff – September 9, 2025: NEWS: Sens. Schiff, Padilla Lead 19 Senators in Amicus Brief Fighting Trump Abuse of Military Deployments
• Adam Schiff – September 9, 2025: NEWS: Sen. Schiff Joins Sullivan, Murkowski, and King in Introduction of American Grown Act
• Adam Schiff – September 8, 2025: NEWS: Sen. Schiff Champions American Workers, Introduces Landmark Bill to Provide Striking Workers Unemployment Pay
• Adam Schiff – September 5, 2025: ICYMI: In Los Angeles Times Op-Ed, Sen. Schiff Raises Alarm on Attempts to Restart Pipeline Responsible for 2015 Oil Spill
• Adam Schiff – September 5, 2025: NEWS: Sens. Schiff, Whitehouse Introduce Resolution to Strike Down Trump’s Latest Giveaway to Big Oil
• Adam Schiff – September 5, 2025: NEWS: Sen. Schiff, Senate Judiciary Committee Democrats Blast “Brazen” DOJ Firings, Demand Answers on Public Servants Dismissed with Connections to Previous Trump Investigations
• Adam Schiff – September 4, 2025: NEWS: Sen. Schiff Joins Senate Judiciary Democrats to Urge Firing of Justice Department Employee and Insurrectionist Jared Wise
• Adam Schiff – September 4, 2025: WATCH: Schiff Presses Trump’s Pick for the U.S. Court of Appeals on Presidential Immunity Views 
• Adam Schiff – September 3, 2025: WATCH: Sen. Schiff Denounces Trump’s Misuse of the Military in Los Angeles, Talks Trump’s Campaign of Retribution

Legislation Introduced by the Orange County Delegation

Friday 09/12

Millions of Californians at risk of losing Medi-Cal coverage as rules tighten -- Most of the federal changes under HR 1, commonly referred to as the “One Big Beautiful Bill,” apply to adults on Medi-Cal, the joint federal-state health insurance plan for low-income Californians. They enact new work requirements, more frequent renewal rules, and new copayments. Catherine Ho in the San Francisco Chronicle -- 09/12/25

California lawmakers pass a final flurry of bills, these are Newsom’s potential veto targets -- Proposals to regulate AI, cap insulin costs and provide lawyers to children in immigration court are among the policies California lawmakers are debating this week as they conclude their work for the year. Sophia Bollag in the San Francisco Chronicle -- 09/12/25

Thursday 09/11

Newsom strikes climate deal extending California cap and trade, boosting oil production -- After weeks of tense and messy negotiations, California’s legislative leaders finally released several proposals that range from expanding domestic crude oil production to lowering electricity rates. But the biggest barrier was the reauthorization of the state’s cap and trade program. Maya C. Miller, Alejandro Lazo and Jeanne Kuang Calmatters Kate Wolffe in the Sacramento Bee Hayley Smith in the Los Angeles Times -- 09/11/25

California moves to close overdose protection loophole that deters students from seeking emergency help -- State lawmakers pass a bill that shields college students from disciplinary action if they call 911 during an overdose emergency. Tyrone Beason in the Los Angeles Times -- 09/11/25

Wednesday 09/10

California leaders race toward deadline for cap-and-trade deal -- California lawmakers are running down the clock to craft a deal to renew the state’s influential cap-and-trade climate policy. Kate Wolffe in the Sacramento Bee -- 09/10/25

Older California homes for sale now must come with wildfire warnings -- The state is the first to require sellers in high-risk areas to disclose what they’ve done to protect houses. Todd Woody, Bloomberg in the Orange County Register -- 09/10/25

Tuesday 09/09

Trump administration could roll back planned California dam removal -- U.S. Agriculture Secretary Brooke Rollins took to social media over the weekend to express concerns about dam removal on California’s Eel River, even suggesting that the Trump administration may intervene to stop or revise the project. Kurtis Alexander in the San Francisco Chronicle -- 09/10/25

Electric vehicle access to carpool lanes is ending -- One of California’s longest-running incentives for people to buy electric cars — a program that provides access to carpool lanes regardless of how many people are in their vehicle — is coming to end. The Clean Air Vehicle decal program expires on Sept. 30. Paul Rogers in the San Jose Mercury -- 09/10/25

Monday 09/08

State bill to provide safe parking for homeless community college students is in jeopardy -- A state bill that could have established overnight parking programs for homeless students enrolled in California community colleges looks unlikely to pass in the legislative session ending Friday. Dakota Smith in the Los Angeles Times -- 09/08/25

‘Something can be done about this’: New plan aims to stop sex abuse in California schools -- A new bill would give officials more tools to identify and combat sexual abuse and educate students to better identify the most common signs of grooming behavior. Matt Drange Calmatters -- 09/08/25

Weekend 09/07 – 09/06/25

Judge says in tentative ruling Huntington Beach can’t restrict children’s book access -- An Orange County judge sided with Huntington Beach residents who sued the city for violating the state's Freedom to Read Act. Claire Wang in the Orange County Register -- 09/07/25

Anthropic’s $1.5-billion settlement signals new era for AI and artists -- Chatbot builder Anthropic agreed to pay $1.5 billion to authors in a landmark copyright settlement that could redefine how artificial intelligence companies compensate creators. Queenie Wong in the Los Angeles Times Melissa Korn and Jeffrey A. Trachtenberg in the Wall Street Journal -- 09/06/25