Newsom Signs CEQA Reform to Speed Up Housing in California. Will It Lower Costs?
California Passes Historic Housing Reform Laws, Exempting Most Urban Development from Environmental Review Landmark legislation aims to accelerate housing production amid state's affordability crisis July 17, 2025 California Governor Gavin Newsom signed the most significant housing reform legislation in the state's modern history on June 30, 2025, enacting sweeping changes to environmental law that could dramatically accelerate urban housing development across the Golden State. The two bills—Assembly Bill 130 and Senate Bill 131—represent a major overhaul of the California Environmental Quality Act (CEQA), the 55-year-old environmental protection law that has long been a flashpoint in debates over housing production and development delays. Major Changes to Environmental Law AB 130 creates a broad exemption from CEQA requirements for most "infill" housing developments in already built-up urban areas, marking the end of decades of environmental litigati...