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

The California State Legislature officially reconvened in Sacramento on Monday, marking the commencement of the second half of the 2025-26 legislative session.

This month, lawmakers are focused on advancing two-year bills, with policy committee hearings starting promptly on Tuesday. The urgency is driven by the January 31 deadline for two-year measures to advance out of its house of origin. Two-year bills that fail to pass out of their house of origin by the end of the month will not proceed through the legislative process this year.

Governor Gavin Newsom delivers his State of the State address on January 8. This annual address provides the governor with an opportunity to outline his priorities for the upcoming year, often setting the tone for the legislative and budgetary debates that will dominate the session.

Approximately 2,500 new bills are anticipated to be introduced between now and the bill introduction deadline on February 20.

The new Senate leader, Senate pro Tem Monique Limón announced her leadership team and committee assignments for the 2026 session last month, elevating several allies to key positions. Of particular importance, she replaced influential chairs on the Budget and Appropriations committees, which will now be led by Senators John Laird (D-Santa Cruz) and Sabrina Cervantes (D-Riverside) respectively.

Governor Gavin Newsom’s 2026-27 Budget Proposal

The 2026-27 budget proposal from Governor Newsom is scheduled for release on January 9 at 10 a.m. Notably, the Director of the Department of Finance, rather than the governor himself, is expected to present the proposal to the media. We will circulate an analysis next week highlighting the budget's most significant effects on Orange County.

November Revenues. The Department of Finance (DOF) and State Controller released reports on November’s revenues as compared to the 2025-26 governor’s budget proposal.

California Revenue Projections and the 2026 Budget Outlook. Recent preliminary data suggests California's General Fund revenues are significantly exceeding earlier projections, primarily driven by strong income tax receipts:

• Through November, the 2025-26 budget year was trending well above projections.
• Preliminary December figures are also expected to show positive results.
  • Total personal income taxes were roughly $2.7 billion above the monthly estimate.
  • Corporate income tax payments were about $300 million above June 2025 projections.
• Assuming stable sales tax and other revenue sources, these income tax tallies would place cumulative General Fund revenues approximately $12 billion above the June 2025 budget estimates over the budget window (2024-25, 2025-26, and 2026-27).
• As noted by the Legislative Analyst’s Office (LAO) in its November fiscal outlook, the bulk of these higher revenues appear linked to the artificial intelligence investment boom, a sector the LAO has cautioned could be an investment bubble that may soon subside.

Expect Varying Deficit Estimates

• It is important to expect significant differences between the deficit estimates provided by the LAO and the administration. Although the LAO projected an $18 billion deficit entering the 2026-27 budget year, we are anticipating that the governor’s deficit projection will be far lower.
• The LAO's projection of $11.1 billion in revenue gains was expected to be mostly offset by:
  • $7 billion more in required Proposition 98 spending for schools and community colleges.
  • $3.4 billion more in required Proposition 2 transfers to state reserves.
• Administration estimates for Proposition 98 spending and Proposition 2 deposits may vary significantly from the LAO’s November estimates.

Spending Estimate Variances

• The LAO projected a net $5.7 billion increase in non-Proposition 98 spending over the budget window.
• However, the administration's estimates could easily differ by several billion dollars, particularly concerning health and social services costs (potentially related to federal H.R. 1 legislation) and state administrative costs (civil service pay, benefits, and department expenses).
• Expect key spending estimates, especially in health, social services, and corrections, to change during this year’s budget process, as the legislative budget subcommittees vet the administration's proposals.

The 2026 Budget Process Ahead

• The January budget proposal may be found here upon its release on January 9.
• Legislative staff will analyze the proposal's details and release summaries shortly thereafter.
• Trailer bill language is legally due from the administration by February 1.
• The governor's proposals will undergo review by both houses’ legislative budget subcommittees. These subcommittees will then begin budget hearings, which will involve analyzing, hearing presentations, and receiving public comment on every element of the budget. These hearings are anticipated to start next month and run through May.
• Budget discussions are expected to generate new proposals and alternatives to close the deficit from both the executive and legislative branches over the next six months.
• The May revision - updated revenue, spending, and administrative proposals - will be released on or before May 14.
• The final June 2026 budget will balance the 2026-27 state budget, drawing heavily on the administration’s May revenue estimates and a combination of spending proposals from the governor and the legislature.
• The legislature is required to send the governor a budget for consideration by June 15.

Informational Hearing on Factory Built Housing Technology

The Assembly Select Committee on Housing and Construction Innovation held an informational hearing earlier this week titled “Perspectives from Developers and Manufacturers” focused on modular and factory-built housing technology. The hearing was chaired by Assemblymember Buffy Wicks (D-Oakland), and was attended by Assemblymembers Jessica Caloza (D-Los Angeles), Juan Carrillo (D-Palmdale), Mark Gonzalez (D-Los Angeles), Jeff Gonzalez (R-Indio), Heather Hadwick (R-Jackson), John Harabedian (D-Pasadena), Josh Hoover (R-Folsom), Diane Papan (D-San Mateo), Sharon Quirk-Silva (D-La Palma), Rhodesia Ransom (D-Stockton), and Lori Wilson (D-Suisun City).

The hearing highlighted some of the benefits and challenges of factory built modular housing. It also showcased manufacturers and developers’ desire to update building codes and increase consistent market demand for it.

The recently established Select Committee on Housing Construction Innovation is tasked with exploring and advancing modern, cost-efficient, climate-smart approaches to building new homes in California. The findings of the committee will be summarized in a white paper expected in early 2026. The committee then plans to translate its findings into a package of legislative proposals in 2026 aimed at removing barriers and supporting responsible innovation in the construction phase of housing development.

Background. Ben Metcalf of the Terner Center for Housing Innovation at UC Berkeley addressed the wider housing affordability crisis, stating that California is projected to have a deficit of 2.5 million homes by the year 2030. At the same time, construction costs in the state are a little more than two times the cost to build housing in Colorado and Texas. Construction costs have increased faster than inflation, doubling since 2019. Two thirds of contractors cite skilled labor shortages as the main cause of cost increases. Federal changes in tariff and immigration policies are expected to stoke these inflationary pressures further.

Metcalf detailed some of the challenges and opportunities of factory-built housing as a solution to California’s housing crisis. He noted that in counties that use the design method more regularly (Japan and Sweden), cost savings of 10-20% are seen across the board. He highlighted benefits including shorter construction times, improved building quality, safer and better working conditions by eliminating major hazards such as high heat and falling, providing more stable working hours, and reducing construction material waste.

However, factory-built housing remains a very small portion of California’s housing production. Much of the manufacturing takes place out of state. Financing remains a major hurdle. As does fragmentation of the industry and regulatory interests. He encouraged policy makers to create enabling conditions to increase the market share and capabilities of factory-made housing. A strong emphasis was put on local building codes and the desire for more statewide consistency. The concept of pre-approved design was raised as a possible solution. Generally, new technology and new methods of building housing can be viewed as inherently risky given the nature of housing being the biggest investment a household makes.

Developer Perspective. The panel discussing the developer perspective featured Caleb Roope (The Pacific Companies), Lois Kim (Mutual Housing), Danny Haber (oWOW), and Don Ajamian (Emergent 3D). A major focus of the developers' comments was the difficulties associated with existing financing structures and building codes. Specifically, they noted that most current lending and financing models are based on traditional, on-site construction methods.

With modular building, the units are built in a factory, shipped to the site, assembled, siding and roofing are installed, and the project is completed. About 40% of construction is done in the factory, with the remaining work done on site to knit the manufactured pieces together and provide the finishing work. Panelists encouraged policymakers to incentivize greater adoption of modular technology to increase consistent demand including the use of tax credits and CEQA exemptions.

Like other types of production, cost savings increase as production of manufactured homes increases. Haber highlighted three areas where cost savings could be achieved including updating building codes (change plumbing standards from cast iron to include ABS plastic); reducing flat rate utility hookups which add $10,000 per unit; and financing incentives including a state-backed guarantee on permanent debt to lower permanent loan costs.

Ajamian decried that the current building codes do not allow for innovative new building techniques such as 3D concrete printing. Kim talked about the outsized impact state policies and building codes have on the financial viability of development projects.

Manufacturer Perspective. The panel discussion featuring manufacturers, Alex Shea (US-Offsite), Kevin Brown (Harbinger), Garrett Moore (TektonOS), and Apoorva Pasricha (Cloud Apartments), concluded the event. Kevin Brown of Harbinger highlighted the benefits of manufactured housing for union workers and stressed the necessity for more reliable, consistent aggregated demand. He noted that the single-project nature of most housing efforts prevents realizing the cost savings potential of scalability. Brown proposed that the state could facilitate multi-year aggregated demand for modular housing. This could be achieved through scaled procurement, standardized methods, or policies designed to expand the modular pipeline, with the goal of delivering lower-cost housing at scale.

In his testimony, Moore spoke to the issues of local government risk mitigation and recommended a “performance-based code” for offsite building projects, where the state would set building standards and take on the risk of projects built using innovative methods within certain parameters.

To increase demand for modular units, Shea recommended a density bonus for factory-built housing; a local plan check shot clock like what was done for ADUs in 2018; third party plan checks for onsite and offsite; and securitized FBH backed commercial mortgage-backed securities and the creation of tax-exempt debt instruments like municipal bonds.

Discussion among committee members highlighted several potential advantages of factory-built housing for construction workers, such as increased workplace safety, more consistent and shorter commutes, and climate-controlled work environments. However, Assemblymember Quirk-Silva advised prudence regarding the adoption of untested technology. A question was raised by Assemblymember Papan about the impact on the overall work volume for trade laborers. In a separate exchange with panelists, Assemblymember Hoover focused on the work benefits associated with more reliable, year-round employment and reduced commute times.

The committee is set to hold another informational hearing next week focused on the view from labor and the investment community.

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.

Wednesday, January 14, 2026, 1:30 p.m.
Assembly Communications and Conveyance
Oversight Hearing: The State of Broadband Affordability

Wednesday, January 14, 2026, 1:30 p.m.
Assembly Select Committee on Housing Construction Innovation
Informational Hearing: Hearing #2: Perspectives from Government, Investors, and Labor

Grant Opportunities 

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

Deadline: 2/11/26 00:00
Title: Legacy Disposal Site Abatement Grant Program
State Agency / Department: Department of Resources Recycling and Recovery
Match Funding? 50%
Estimated Total Funding:$1,500,000
Funding Method: Reimbursement(s)

Deadline: 2/12/26 16:00
Title: 2025-26 Digital Divide Grant Program Round 3
State Agency / Department: Public Utilities Commission
Match Funding? No
Estimated Total Funding:$200,000
Funding Method: Reimbursement(s)

Anticipated Open Date: Q1
Title: California Advanced Services Fund: Broadband Adoption Account – July 2026 Cycle
State Agency / Department: Public Utilities Commission
Match Funding? 15%
Estimated Total Funding:$30,000,000
Funding Method: N/A

Deadline: 2/3/26 15:00
Title: Employment Pathways Technical Assistance (EPTA) grant for Program Year 2025-26 (PY 25-26)
State Agency / Department: Employment Development Department
Match Funding? No
Estimated Total Funding:$1,500,000
Funding Method: Reimbursement(s)

Anticipated Open Date: January 5, 2026
Title: Request for Application (RFA) 25-10031: Local Training and Education Program for the Prevention of Domestic Violence (DV)
State Agency / Department: Employment Development Department
Match Funding? No
Estimated Total Funding: $1,171,200
Funding Method: Reimbursement(s)

 
Governor’s Press Releases

Below is a list of the governor’s press releases beginning December 17.

January 6: Governor Newsom’s statement on Valero’s Benicia refinery update

January 6: Governor Newsom announces appointments 1.6.2026

• Martha Sanchez Cannady, of Cypress, has been appointed to the 32nd District Agricultural Association, Orange County Fair Board
• Ronald “Ron” Fiore, of San Francisco, has been reappointed to the California State Athletic Commission where he has served since 2023
• AnnMaria DeMars, of Santa Monica, has been reappointed to the State Athletic Commission where she has served since 2022
• Thomas Hudnut, of Beverly Hills, has been reappointed to the California Horse Racing Board where he has served since 2021
• Damascus Castellanos, of Pico Rivera, has been reappointed to the California Horse Racing Board where he has served since 2020

January 6: Governor Newsom lowers flags, proclaims January 7th as day of remembrance for Los Angeles fires

January 6: THIS WEEK: State finance director to hold media briefing on Governor Newsom’s 2026-27 budget

January 6: Governor Newsom issues executive order expanding protections for survivors and support for businesses

January 6: On eve of LA Fire Anniversary, Governor Newsom announces housing push to keep survivors in their communities

January 6: As federal aid stalls, Governor Newsom announces proposed effort to close insurance gaps for LA fire survivors, expands mortgage relief

January 6: One year after LA fires: California deploys firefighting resources and advanced technology, accelerates prevention efforts

January 6: Governor Newsom statement on the passing of Congressman Doug LaMalfa

January 6: Governor Newsom issues proclamation declaring 2026 statewide primary election date

January 5: Governor Newsom issues statement on Trump administration’s vaccine schedule endangering the lives of infants and children

January 5: One year after Los Angeles firestorms, California continues all-of-government community recovery efforts

January 2: Governor Newsom announces appointments 1.2.2026

• Patrick Eaton, of Sonora, has been appointed Deputy Director of Facility Support of the Division of Adult Institutions at the California Department of Corrections and Rehabilitation
• Joseph Tuggle, of Placerville, has been appointed Associate Director, Region I of the Division of Adult Institutions at the California Department of Corrections and Rehabilitation
• Patwin Horn, of Kern County, has been appointed Warden at Kern Valley State Prison, where he has served as Acting Warden since 2024
• Sircoya M. Williams, of Solano County, has been appointed Warden at the California Medical Facility
• Rafael Acevedo, of Imperial County, has been appointed Warden at Richard J. Donovan State Prison
• Kelly Santoro, of Kern County, has been appointed Warden at Salinas Valley State Prison
• Robyn Fennig, of Sacramento, has been appointed Deputy Director of Recovery Operations at the California Governor’s Office of Emergency Services
• Rhys Williams, of Orangevale, has been appointed to the Board of Environmental Safety

December 31: Governor Newsom honors fallen CAL FIRE Engineer

December 31: Federal court finally ends illegal federalization of National Guard after Trump gives up, Governor Newsom directs leadership to quickly send soldiers home to families

December 31: NUEVO EN 2026: Leyes de California que entran en vigencia en el nuevo año

December 31: NEW IN 2026: California laws taking effect in the new year

December 31: Following LA fires, Governor Newsom extends key provision to fast‑track wildfire safety window, protecting more communities across the state

December 31: California advances Jobs First agenda, expands career pathways and worker protections statewide

December 30: Governor Newsom prepositions emergency resources in Southern California ahead of New Year’s Storm

December 30: Governor Newsom announces appointments 12.30.2025

• Lilia Larin, of Chula Vista, has been reappointed to the Dental Board of California, where she has served since 2018
• Joni A. Forge, of Long Beach, has been reappointed to the Dental Board of California, where she has served since 2022
• Steven Chan, of Fremont, has been reappointed to the Dental Board of California, where he has served since 2021
• Rosalinda Olague, Rancho Cucamonga, has been reappointed to the Dental Board of California, where she has served since 2018
• Denise Pines, of Los Angeles, has been reappointed to the Osteopathic Medical Board of California, where she has served since 2021
• Gilda Dominiguez, of Covina, has been reappointed to the Speech-Language Pathology and Audiology and Hearing Aid Dispensers Board, where she has served since 2021
• Amy White, of Sloughhouse, has been reappointed to the Speech-Language Pathology and Audiology and Hearing Aid Dispensers Board, where she has served since 2021

December 30: Governor Newsom to deliver State of the State Address next week

December 29: Here’s everything (so far) Governor Newsom got done in the year that would not end

December 24: Governor Newsom proclaims state of emergency to support response in multiple counties due to late December storms

December 23: California turns winter season rain into future water supply

December 23: Governor Newsom declares states of emergency related to multiple severe weather events in 2025

December 23: Governor Newsom deploys dedicated teams to fight crime in Stockton, building on existing successful partnerships

December 23: Governor and LA Rises announce new online resource to further help LA fire survivors navigate rebuilding

December 23: Governor Newsom’s SAFE Task Force partners with Sacramento to clear encampment

December 23: Prop 1 brings new projects creating hundreds of housing units for Californians, including veterans

December 22: Governor Newsom mobilizes state resources as California braces for winter storm

December 22: Governor Newsom announces judicial appointments 12.22.2025

• Katrina Brownson, of Tulare County, has been appointed to serve as a Judge in the Tulare County Superior Court
• Sarah J. Ellenberg, of Los Angeles County, has been appointed to serve as a Judge in the Los Angeles County Superior Court
• Jonathan Eisenman, of Los Angeles County, has been appointed to serve as a Judge in the Los Angeles County Superior Court
• Erin Donovan, of Los Angeles County, has been appointed to serve as a Judge in the Los Angeles County Superior Court
• Erin Reed, of Los Angeles County, has been appointed to serve as a Judge in the Los Angeles County Superior Court
• Kevin Lee, of San Bernardino County, has been appointed to serve as a Judge in the San Bernardino County Superior Court

December 22: Governor Newsom announces $50,000 reward payout in Solano murder, rewards for other cold cases in Alameda and San Diego counties

December 22: California steps up to protect communities amid continued antisemitic actions worldwide

December 19: CalRx drives down the cost of naloxone as state program reverses nearly 400,000 overdoses

December 19: Governor Newsom provides communities $52 million to build housing and infrastructure, address homelessness

December 19: Governor Newsom announces $47 million in grants to help prevent substance use among California youth, including supports for struggling young men and boys

December 19: Governor Newsom leads seasonal storm readiness effort

December 18: As Donald Trump attempts to restrict health care for LGBTQ youth, California partners with The Trevor Project to launch statewide suicide prevention training for 988 crisis counselors

LEGISLATIVE BRANCH ACTIVITY

Fiscal Year 2026 Appropriations Sees Real Progress, Hurdles Still Ahead

On January 5, appropriators in both the House and Senate released a bipartisan minibus containing the Commerce, Justice, Science; Energy and Water Development; and Interior and Environment bills. The proposed bill generally follows the bipartisan Senate frameworks and rejects the Administration’s requested cuts to federal programs, offering only slight cuts or level funding most federal agencies and programs within them.

Due to the bipartisan and bicameral nature, the minibus has a significant chance of passage despite controversy over the inclusion of certain earmarks raised by members of the House Freedom Caucus. Once passed, appropriators will have six of the twelve bills left to pass before the continuing resolution (CR) currently funding the government expires on January 30. Given the progress being made, leadership has stated there may be a need for an additional, short term, CR to allow appropriators time to finalize and package the remaining bills.

Additionally, the passing of Rep. Doug LaMalfa (CA-1) has the potential to further complicate the appropriations process, bringing Speaker Mike Johnson’s majority down to just two votes. Attendance issues with narrow majorities have previously impacted the passage of legislation.

Congress Considers Legislation Addressing Energy Regulations for Manufactured Homes

The House considered HR 5184, the Affordable Housing Over Mandating Efficiency Standards (HOMES) Act, the second week of January. The bill would modify and provide exceptions to Department of Energy (DOE) energy efficiency and conservation standards for manufactured homes.

Under the bill, DOE would retain the ability to advise the Department of Housing and Urban Development on building code recommendations but would largely lose the authority to regulate manufactured or factory constructed housing. The bill aims to decrease the regulatory burden on pre-fabricated housing, as Congress looks to increase housing supply and affordable housing availability.

Congressman Doug LaMalfa of California’s First Congressional District Passes Away

On January 6, 2026, House Majority Whip Tom Emmer announced the passing of Representative Doug LaMalfa (R-CA-1). Congressman LaMalfa had been serving California’s First Congressional District since 2013.

The Congressman previously served in the State Assembly and Senate before being elected to the House. He served as Chairman of the Congression Western Caucus, Chairman of the House Committee on Agriculture’s Forestry Subcommittee, and on the House Committees on Transportation and Infrastructure and Natural Resources. The Congressman is survived by his wife and children. On January 7, the House adjourned in honor of Rep. LaMalfa and held a moment of silence on the floor.

House Committee on Energy and Commerce Holds Hearing on Nuclear Power

On January 7, the House Committee on Energy and Commerce’s Energy Subcommittee held a hearing on new nuclear power. Witnesses included the Director of the Idaho National Laboratory, the President of the Nuclear Energy Institute, and utility company representatives.

Due to increasing stable grid demand largely connected to the raid expansion of artificial intelligence (AI) data centers, Congress is looking for alternative measures to increase energy supply. Members of the Subcommittee discussed modifying Nuclear Regulatory Commission procedures to allow older nuclear power plants to be either recommissioned or have their operating licenses extended. Members and witnesses also discussed next generation power plants and small modular reactors.

EXECUTIVE BRANCH ACTIVITY

HHS Freezes Benefits Funding for California

On January 6, the Department of Health and Human Services (HHS) announced they would be freezing funding for California and four other states under the Administration for Children and Families. The programs impacted include Temporary Assistance for Needy Families (TANF/CalWORKS), Child Care and Development Fund, and the Social Services Block Grant.

The federal funding provides financial assistance to families, funds early childhood education programs, and supports state child welfare services like foster care, counseling, substance abuse disorder treatment, and employment services.

The move is being seen as an extension of the fraud accusations being made in Minnesota. California Attorney General Rob Bonta said the State was assessing the legality of the move, and would take appropriate legal action once they had made a determination. Typically, additional reporting measures for Congressionally appropriated funds are added via the rulemaking process or including in future authorization or appropriations bills, though the President does maintain some authority to directly prevent fraud.

Orange County Delegation Press Releases

• Mike Levin – January 3, 2026: Rep. Mike Levin’s Statement on U.S. Military Operations in Venezuela | U.S. Congressman Mike Levin
• Linda Sánchez – January 3, 2026: Sánchez statement on military actions in Venezuela | Congresswoman Linda Sanchez
• Adam Schiff – January 6, 2026: WATCH: Sen. Schiff Reflects on January 6th Attack on U.S. Capitol 5 Years Later: “The Danger Has Grown”
• Adam Schiff – January 6, 2026: WATCH: Sen. Adam Schiff Testifies at Hearing Spotlighting Fifth Anniversary of January 6 Insurrection, Highlights Trump’s Continued Attempts to Undermine American Elections
• Adam Schiff – January 6, 2026: WATCH: Sen. Schiff Calls Out Trump Administration’s Lies About Venezuelan Regime Change and Access to Oil, Demands Transparency on MS NOW
• Adam Schiff – January 6, 2026: STATEMENT: Senator Schiff on Five Years Since the January 6th Insurrection
• Adam Schiff – January 3, 2026: STATEMENT: Sen. Schiff Statement on U.S. Military Operations in Venezuela
• Alex Padilla – January 6, 2026: WATCH: Padilla Leads Senate Floor Push to Set the Record Straight on Fifth Anniversary of January 6 Insurrection - Senator Alex Padilla
• Alex Padilla – January 6, 2026: Senate Unanimously Passes Padilla, Murkowski Bipartisan Legislation to Reauthorize National Earthquake Hazards Reduction Program - Senator Alex Padilla
• Alex Padilla – January 6, 2026: Padilla, Whitehouse Introduce Bills to Ban Taxpayer Payouts for January 6 Rioters - Senator Alex Padilla
  
  

Legislation Introduced by the Orange County Delegation

Friday 01/09/2026

Lawmaker targets repeat drunk drivers as part of larger push to fix problems exposed by CalMatters -- The DUI bill is intended to be the “tip of the spear” in a movement to address how California allows dangerous drivers to stay on the roads. Lauren Hepler and Robert Lewis Calmatters -- 01/09/26

Newsom proposes education power grab for next governor. What it could mean for schools -- Gov. Gavin Newsom on Thursday previewed a major education system overhaul that would give the next governor more authority over state school policies and redefine — and almost certainly diminish — the role of the elected state superintendent of public instruction. Howard Blume and Melody Gutierrez in the Los Angeles Times -- 01/09/26

Thursday 01/08/2026

California delayed cancellation of immigrant truckers’ licenses. So feds will withhold $160 million -- After California paused a plan to cancel the licenses of thousands of immigrant truckers, federal officials announced Wednesday they would withhold $160 million in transportation funds from the state. Ruben Vives in the Los Angeles Times -- 01/08/26

Lawmakers explore new taxes to fill California’s ongoing budget deficits -- Barring drastic cuts to spending or bringing in additional revenue, the nonpartisan Legislative Analyst’s Office estimates the deficit could be as high as $18 billion this year and $35 billion in future years. Nicole Nixon and Andrew Graham in the Sacramento Bee -- 01/08/26

Wednesday 01/07/2026

Will California legislators make changes to contentious new housing law? -- Changes could soon be coming to a hotly-debated new California law meant to encourage denser housing developments near transit stops before it even goes into effect. Stephen Hobbs in the Sacramento Bee -- 01/07/26

This change could deliver billions of more dollars to California schools. Here’s the tradeoff -- By basing funding on enrollment, not attendance numbers, schools would lose the incentive to get students to show up every day, a new report finds. Carolyn Jones Calmatters -- 01/07/26

Tuesday 01/06/2026

Health Dept. to Freeze $10 Billion in Funding to 5 Democratic States -- The funding pause could jeopardize child care and other programs that serve hundreds of thousands of households in California, Colorado, Illinois, Minnesota and New York. Minho Kim in the New York Times -- 01/05/26

These are the biggest challenges facing California’s economy in 2026 -- A weak job market, concerns over federal policies and an artificial intelligence bubble could spell trouble for the California and the Bay Area economies in 2026, experts said. Roland Li in the San Francisco Chronicle -- 01/06/26

Monday 01/05/2026

AI regulation battle looms in California despite Trump threats -- This year, many of the world’s most powerful artificial intelligence companies face a pitched battle over government regulation on their home turf — California. And even President Donald Trump’s threat to punish states that regulate AI may not stop the fight. Eliyahu Kamisher, Bloomberg in the San Jose Mercury -- 01/05/26

Will this be the year California makes kindergarten mandatory? -- California is one of 32 states that doesn’t require 5-year-olds to attend school. Carolyn Jones Calmatters -- 01/05/26

Weekend 01/04 – 01/03/2026

America’s toughest privacy protections have finally kicked in -- How to delete your data in one easy step — if, that is, you live in California. Shira Ovide in the Washington Post -- 01/04/26

California ban on open carry of firearms ruled unconstitutional by appeals court -- The 9th U.S. Circuit Court of Appeals determined that the ban, which applied to counties with populations greater than 200,000, violates residents’ 2nd Amendment right to keep and bear arms. Under those regulations, 95% of the state’s population was subject to the ban. Clara Harter in the Los Angeles Times Aidin Vaziri in the San Francisco Chronicle Lindsey Holden Politico Rosalio Ahumada in the Sacramento Bee Laurel Rosenhall in the New York Times -- 01/03/26