Overview

• The Legislature approved AB 130 and SB 131 alongside the 2025-26 budget on July 1, marking the biggest revisions to CEQA since its 1970 inception.
• The reforms immediately exempt most urban housing in already developed areas and nine categories of nonresidential projects from CEQA review, including rail stations, advanced manufacturing sites and food banks.
• Environmental groups and some lawmakers decried the expedited budget maneuver for sidestepping thorough review and warned it could undermine safeguards for endangered species and pollution control.
• Supporters led by Sen. Scott Wiener said the rollback will cut lengthy legal delays and speed up construction to address California’s housing affordability crisis.
• The budget package also earmarks $500 million for homeless assistance, even as opponents prepare legal challenges that could extend debate over the reforms.