A Hallelujah Moment for Economic Growth
Landmark reform offers new hope for addressing the East Bay’s housing shortage and the economic toll of inaction.
The California Environmental Quality Act (CEQA) was never meant to block infill housing or deepen our housing crisis. Yet too often, that is exactly what it did.
This week, major reform finally happened. And it wasn’t by chance. Governor Newsom made CEQA reform a priority, tying it to the state budget and using his political capital to see it through. That kind of leadership delivers real progress.
For the better part of a decade, the East Bay Leadership Council has supported CEQA reform through coalition advocacy, educational forums, and direct engagement with policymakers. We have long viewed reform as a necessary step toward addressing the region’s chronic housing shortage. Our members have seen firsthand how projects that align with local plans can be delayed or derailed by CEQA litigation that has little to do with environmental protection.
This milestone would not have been possible without the local leadership of East Bay Assemblymember Buffy Wicks. She stayed focused on the issue when others walked away, built the coalition it required, and helped advance the kind of bold, targeted reform this moment demanded.
Under the new laws, a wide range of qualified infill projects—including housing, child care centers, transportation infrastructure, advanced manufacturing, parks, food banks, and wildfire mitigation work—can now move forward without being subjected to lengthy reviews. These changes reflect a critical shift toward accelerating development in areas that are already urbanized and well-served by infrastructure.
At EBLC, we have long recognized that housing supply and affordability are not just social challenges. They are economic imperatives. When workers cannot afford to live near job centers, the effects ripple through the economy. We see workforce shortages, strained infrastructure, and reduced productivity. If we want to keep the East Bay competitive, we need to make room for the people who power our economy.
Other barriers remain. Restrictive zoning, high construction costs, and elevated interest rates continue to limit new housing production. More than 10,000 East Bay residents are experiencing homelessness, and thousands of additional homes are needed each year to meet demand. The urgency is clear and we will continue to advocate for broader solutions that support affordability and economic resilience.
As former Governor Jerry Brown once said, CEQA reform is “the Lord’s work.” This time, Governor Newsom and the Legislature got it done. Hallelujah.
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