Federal Impacts In addition to the uncertainty around tariffs and other federal funding streams that are impacting the state budget, the United States Senate moved forward to restrict California’s clean air waivers in- cluding its advanced clean fleet program. California continues to push significant clean energy policies that contradict the affordability concerns being raised statewide. Te federal action will help reduce regulatory burdens on Califor- nians, but the California Air Resources Board may maneuver to implement other policies with negative consumer affordability impacts. Te Governor and Attorney General
Rob Bonta are fighting this federal Senate action by filing a lawsuit claiming the Senate’s vote was illegal, which sets up another California and federal govern- ment showdown over the next couple
The Governor’s initial proposed budget in January had a modest surplus, but within a few short months, the state budget outlook was at a $12 billion deficit largely due to proposed tariff impacts and increased costs to the state’s Medi-Cal program.
years. Tis will undoubtedly have con- sequences regardless of the outcome.
What’s Next? Te Legislature is in the final sprint of this legislative year with votes still pending on over 1,000 bills along with finalizing negotiations on complex policy issues. Both legislative houses adjourn Sep- tember 12, 2025 unless a special session is called to address the state’s budget condition or other state issues before their January return. Te Governor has
until October 12 to act on all bills sent to him for signature or veto. Stay tuned for more!
Melanie Perron
Representing AGC of California member interests as an advocate, Melanie Perron has 20 years of legislative experience in the legislature, executive branch, and local government in California.
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CALIFORNIA CONSTRUCTOR JULY/AUGUST 2025
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