California’s Democratic Governor, Gavin Newsom, made a significant move in late June by approving changes to the state’s elaborate environmental regulations, a tactic reminiscent of Donald Trump’s approach. This decision modified the California Environmental Quality Act (CEQA), which has roots in the 1970s and has often burdened developers and homeowners with long and costly environmental assessments before they can initiate building projects. The update aims to make the review process more efficient and exempts many large state infrastructure projects from outdated regulations.
Critics, including those in the homebuilding sector, have long argued that such policies contribute to California’s persistent housing shortages and skyrocketing property prices, exacerbating the state’s homelessness crisis. As someone who leans towards free-market economics, I appreciate Newsom’s efforts to address some of these problematic regulations. However, he should consider enhancing his national credibility as he might be eyeing a presidential bid in 2028.
Environmental advocates have voiced their concerns about Newsom and other California Democrats seemingly retreating on climate change. Notably, the updated legislation overlooks the “CEQA abuse” loophole, which permits unions and local activists—often referred to as NIMBYs—to file unwarranted environmental lawsuits. These lawsuits typically delay projects and inflate development costs. While proponents may argue that these actions are taken to protect the environment, they often appear to be more about opposing businesses that these activists do not favor.
Moreover, the impact of such lawsuits isn’t limited to wealthy property owners; they significantly affect young families striving to realize their American dream of homeownership, making it increasingly difficult to afford their first homes. Although Newsom’s reforms focus on urban apartments and major infrastructure—beneficial for many Californians—they do not adequately tackle the larger issues of housing affordability.
A key contributor to California’s declining population is its high cost of living. By permitting the construction of more detached homes, Newsom could attract individuals back from more affordable states like Texas and Arizona, as it would create more options for renting or buying homes.
While the headline-grabbing topics may be environment and crime, California also faces less-discussed issues, such as garbage collection. The state’s Department of Recycling and Recovery employs a convoluted system for greenhouse gas emissions, failing to reduce waste despite tightening regulations on privately owned landfills.
Consequently, California taxpayers are left to shoulder increased costs for transporting waste to distant landfills, driving some facilities out of business. For instance, the Chiquita Canyon landfill ceased operations last year, removing a vital waste disposal option for Los Angeles residents.
As various counties implement their own stringent landfill regulations, Newsom’s capacity to address the landfill dilemma is limited. However, his position allows him to unite local lawmakers to establish affordable waste disposal services for new homes.
People have expressed their opinions by moving, with countless individuals choosing to leave California for more affordable states. While Newsom deserves recognition for reforming the state’s notorious environmental review laws, there’s still considerable work ahead to address the broader issues driving California’s exodus—especially with the potential for a presidential run in 2028 on the horizon.
