A significant step forward in California's housing and homelessness crisis was taken during the Assembly Floor Session on June 30, 2025, as Assembly Bill 131 passed with a vote of 56 to 4. This bill, part of Governor Newsom's budget proposal, aims to tackle the intertwined issues of housing affordability and economic competitiveness.

Assemblymember Gabriel presented SB 131, which allocates $500 million to the Homeless Housing Assistance and Prevention (HAP) program. This funding is designated for cities, counties, and tribes to combat homelessness effectively. The bill also seeks to expedite housing development while balancing environmental protections, introducing various exemptions under the California Environmental Quality Act (CEQA) for housing and essential services.

While many Assembly members expressed support for the bill, concerns were raised regarding specific provisions. Assemblymember Macedo highlighted issues with the blanket CEQA exemptions, particularly for the high-speed rail project, questioning its viability and the allocation of funds. She emphasized the need for rural communities to access these resources to keep people off the streets.

Assemblymember Muratsuchi voiced strong opposition to the environmental implications of the bill, particularly regarding advanced manufacturing facilities. He noted that over 100 environmental organizations have condemned SB 131, labeling it as potentially harmful to California's environmental protections.

Despite these concerns, the Assembly members recognized the bill's potential to streamline project timelines and provide local governments with necessary tools to increase housing availability. The passage of SB 131 marks a critical moment in California's ongoing efforts to address homelessness and housing shortages, with its implications expected to resonate across the state.