Politics
Newsom and Trump pursue parallel deregulation efforts to address housing affordability
Both California and the federal government have targeted permitting hurdles, though differences remain over labor mandates, building types, and density.
The short version
- California Governor Gavin Newsom and President Donald Trump are both employing deregulatory measures to lower housing costs and accelerate construction ahead of the midterms.
- California enacted state laws in mid-2025 targeting environmental review exemptions and financing, while the Trump administration issued a March 2026 executive order directing federal agencies to cut permitting delays and regulatory costs.
- Key policy differences remain: California emphasizes higher density and includes solar and labor provisions, whereas federal recommendations favor outward urban expansion, single-family homes, and fewer energy mandates.
Key facts
- California enacted legislative packages in June and July 2025 to streamline environmental reviews under CEQA, limit certain Coastal Commission appeals, and ease affordable-housing financing.[Fox News]
- President Donald Trump signed a housing-focused executive order in March 2026 directing federal agencies to reduce permitting barriers and streamline regulatory costs.[Fox News]
- White House spokesperson Davis Ingle said Trump signed an executive order prohibiting large Wall Street firms from buying single-family homes and directed $200 billion in mortgage bond purchases through Fannie Mae and Freddie Mac.[Fox News]
- The White House Economic Report of the President, published in April 2026, recommended local housing reforms including by-right approvals, 60-day decision deadlines, and fewer green-energy rules.[Fox News]
- Manhattan Institute senior fellow Judge Glock noted that Newsom's housing measures focus on apartment density and retain solar-panel or union labor requirements, while Trump's framework targets single-family home expansion and seeks to remove such mandates.[Fox News]
What remains uncertain
- The extent to which California's 2025 state housing reforms will overcome local regulatory hurdles, such as rebuild delays following the Palisades fire, remains uncertain.[Fox News]