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California governor signs legislation in bid to stem housing shortage

California Governor Gavin Newsom signed two bills scaling back parts of the California Environmental Quality Act (CEQA) to speed up housing and infrastructure development amid a chronic housing crisis. The reforms aim to address the state’s severe housing shortage, though some environmental advocates criticize the move as undermining protections.

Anadolu Agency AMERICAS
Published July 02,2025
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Fighting a chronic housing crisis, the governor of the US state of California has signed two bills that scale back portions of the California Environmental Quality Act (CEQA) to help speed up housing and infrastructure development.

"This is the most consequential housing reform in modern history in the state of California," Gavin Newsom said during signing ceremony, calling bill "long overdue," according to Tuesday news reports.

The bills were previously approved by California lawmakers.

Supporters argue that reforming the current law's rigorous review process will help address California's ongoing housing shortage and persistent homelessness crisis, while some environmental advocates criticize the move as backdoor dealmaking.

California is estimated to need 3.5 million additional housing units. This shortage is a significant factor causing people and businesses to leave, as housing in popular cities like San Francisco and Los Angeles is unaffordable for the vast majority of those who want to live and work there.

The changes aim to accelerate housing construction, which has frequently been stalled by the state's landmark 1970 environmental law. Critics argue the law is often exploited by groups more focused on blocking development than protecting the environment.

The issue was "too urgent, too important, to allow the process to unfold as it has for the last generation," Newsom told reporters after signing the bills.

Newsom, a possible Democratic presidential contender in 2028, has been criticized by US President Donald Trump and other Republican leaders over the state's shortcomings in housing and other areas.