California Governor Gavin Newsom is prioritizing housing affordability, implementing reforms aimed at accelerating construction and reducing costs. These efforts echo some of the deregulation strategies previously advocated by former President Donald Trump, particularly concerning housing supply.
Newsom signed a significant housing package in June 2025 that included measures to streamline environmental reviews under the California Environmental Quality Act (CEQA) for certain housing and infrastructure projects. The reforms also limited Coastal Commission appeals for housing projects and paused new residential building standards until 2031. Further actions in July 2025 targeted affordable housing financing and project review processes.
These initiatives align with aspects of Trump's federal housing agenda. During his administration, Trump signed an executive order in March 2026 directing agencies to identify ways to expedite permitting, lower regulatory costs, and encourage state and local governments to ease barriers to new construction. An April 2026 White House report also recommended reforms such as by-right approval for code-compliant projects and strict deadlines for building decisions.
Economists note the convergence on supply-side strategies. Peter St. Onge, an economist at The Heritage Foundation, described Newsom's shift as "striking," observing that the governor is adopting policies long favored by free-market economists. However, St. Onge expressed skepticism about California's ability to overcome its regulatory hurdles, citing the slow pace of rebuilding after the Palisades fires as an example of insurmountable regulatory blockades.
Tara Gallegos, Newsom's director of communications, stated that California has enacted "historic reforms" to boost housing production and affordability, contrasting it with the Trump administration's approach. She asserted that Trump's policies had increased prices and disrupted supply chains, hindering building nationwide.
White House spokesperson Davis Ingle countered that Trump has been "laser-focused on making housing more affordable," pointing to executive orders and efforts to reduce red tape. He also claimed Trump's administration took steps to curb Wall Street firms from purchasing single-family homes and supported mortgage bond purchases that lowered rates.
Experts highlight differences in the scope and focus of the two leaders' approaches. John Gibbs, Director of the Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation, suggested that housing is primarily a state and local issue, with federal policies having less direct control over local zoning decisions. Gibbs also noted that some of Newsom's housing laws include provisions for union labor or solar panels, which can increase costs, whereas the Trump administration focused on limiting such requirements.
Another distinction lies in their emphasis on urban development. The Trump administration has reportedly focused more on expanding cities outward to allow for more single-family homes, while Newsom's strategy emphasizes increasing density within existing urban areas and constructing more apartments. Despite these differences, both leaders are utilizing their respective powers—Newsom through state authority to override local zoning and streamline reviews, and Trump through federal levers like mortgage finance and regulatory guidance—to address housing affordability.