These New Laws Help California Lower Costs and Improve Affordability

SACRAMENTO — Nearly a year ago, Speaker Rivas began the two-year legislative session by urging his Assembly colleagues to “chart a new path forward and renew the California Dream by focusing on affordability.” 

This week, after Governor Gavin Newsom’s month of signing bills, Assembly Democrats and the Legislature have delivered dozens of new laws that will help lower costs and alter the trajectory on affordability, including:

• Building more housing faster, especially closer to people’s jobs and the cities and metro areas where we need housing affordability the most
• Providing bigger energy bill rebates to families and expand fuel options to lower gas prices
• Delivering real savings to families, workers and businesses and address the key cost-drivers for California households

The following new laws build on the Assembly and Legislature’s commitment to boosting affordability for working families, businesses and all Californians:

The Biggest Housing Affordability Reforms in Decades

Landmark new housing affordability bills championed by Speaker Robert Rivas and Assembly Democrats were signed into law in July this year. 

Democrats moved with urgency, passing these new laws well before the end of session, because they understand the need to dramatically change the course on housing and affordability in the state.

The goals are to speed-up construction of new homes, provide more clarity for builders and homeowners, and increase housing options for renters and future Californians who want to buy.

Assembly Bill 130 incorporated the policy of AB 609 (Assemblymember Buffy Wicks, D-Oakland) and AB 306 (Assemblymember Nick Schultz, D-Burbank), which will lead to more infill housing near economic sectors and jobs, and provide more certainty and fewer delays for builders and homeowners. 

These new laws represented a major step forward to make it easier and less expensive for Californians to build — and ultimately achieve — more affordable housing. The solution also comes at no fiscal cost to the state. 

The newly signed legislation had broad support from a variety of community groups, including workers and environmental justice organizations. Here is What Labor, Business, and Community Groups Say About the Landmark Housing Laws.

Larger Energy Rebates for Families, New Fuel Options to Cut Prices

The California State Legislature passed signature energy, climate and affordability bills in September, which the Governor immediately signed into law, leading to larger rebates on electricity bills for families and ratepayers, along with more dependable energy sources and continued national leadership in reducing pollution.

The governor also signed Assembly Bill 30 by Assemblymember David Alvarez (D-San Diego), which allows an additional blend of gasoline called E15 to be sold in California, which can stabilize fuel costs as the state Air Resources Board performs a study on it. 

These are real results that enact one of the most comprehensive legislative efforts in the country to make energy more affordable and reliable:

• Lower electricity bills: Extending “Cap and Invest” is estimated to return $3 billion in Climate Credits every year to Californians on their utility bills
• A bipartisan partnership with states across the West on cleaner, cheaper, more dependable energy, which will save Californians upward of $1 billion every year on energy costs.
• Create new jobs: An estimated 287,000 new jobs through 2045
• Significant investments in affordable housing, cleaner buses, safer drinking water, wildfire prevention and healthier air.
• Stabilize gasoline prices and supply: These proposals secure the safe and affordable supply of transportation fuels to better shield families from sudden increases at the pump.

Putting Money Back in Your Pockets

In today’s economy, every dollar counts — and the Legislature is prioritizing real relief with new laws passed this year. 

From lowering renting costs to raising wages and protecting paid leave, Assembly Democrats have taken meaningful steps to ease financial burdens for working families. These commonsense reforms are about one thing: helping Californians keep more of what they earn while improving access to essential services.

Several new laws were signed in the past month, including:

• Empowering Rideshare Drivers: More than 800,000 rideshare drivers now have the choice to join a union and negotiate for fair wages, benefits, and protections, creating the largest organizing effort in a generation.
• Lowering Rideshare Costs: Removes burdensome insurance requirements for rideshare drivers, while still ensuring strong protections against raising costs to riders.
• Increasing Rebates for Utility Bills: Delivers direct monthly bill credits during the highest-cost months so families see real relief on their electricity bills. These rebates will be bigger than in past years, and go into effect immediately this year.
• Saving Families Money on Food Delivery: Requires full refunds for undelivered or incorrect orders on food delivery be returned to the original payment method.
• Safeguarding Competitive Pricing: Protects consumers from price increases by making pricing algorithms subject to state antitrust law.
• Protecting Homeowners: Updates consumer protection laws to allow homeowners to cancel certain home improvement and home solicitation contracts by email or phone.
• Protecting Tenants: Prevents eviction of tenants if there are delays or reductions in Social Security benefits affecting their rent payments.
• Returning Security Deposits Electronically: Allows landlords return security deposits electronically when tenants choose that option.
• Improving Rental Car Transparency: Improves the online car rental process by increasing price transparency and ensuring consumers are aware whether they are renting a gas-powered or electric vehicle.

And in the past year, these laws have passed or gone into effect:

• Capping Security Deposits: Security deposits are now limited to one month’s rent, lowering move-in costs and making rental housing more accessible for millions of Californians.
• Expanded Paid Sick and Family Leave: Workers are now guaranteed at least five paid sick days, with key protections preserved for paid family leave.
• Investments in Families and Food Access: $52 million was secured for California’s food banks, alongside a cost-of-living adjustment for child care providers and a shift to enrollment-based, prospective pay.
• Curbing Banking Fees: Californians are protected from excessive and unfair banking fees, helping avoid unnecessary costs.
• Easier Subscription Cancellations: New laws make it simpler for consumers to cancel subscriptions and avoid hidden or recurring charges.
• Getting Back Security Deposits: New tenant protections help ensure renters get their security deposits returned fairly and on time.
• Rewarding On-Time Rent Payments: On-time rent now counts toward building good credit, helping renters build financial security.
• Streamlining ADU Construction: Building Accessory Dwelling Units (ADUs) is now faster and easier, creating more housing options for families and communities.
• Protecting Californians from Medical Debt: New consumer protections help prevent Californians from being buried in unfair or unexpected medical debt.

Building a Foundation for a More Affordable Future

California’s affordability crisis didn’t begin overnight and will not be solved in one year — especially given Trump’s renewed efforts to dismantle the programs and services that support and uplift our workers and businesses.

Tackling the cost of living in a meaningful and lasting way requires sustained attention and real engagement with the everyday challenges working families face. That’s why Speaker Rivas is leading a long-term strategy to confront the root causes of economic pressure and deliver lasting relief by:

• Creating the Committee on Economic Development, Growth, and Household Impact in order to provide a long term assessment chaired by Assemblymember José Luis Solache Jr., to examine real cost pressures facing Californians—from macroeconomic trends to day-to-day household impacts. These hearings are continuing throughout the year in communities across California.
• Launching four select committees focused on the largest cost-drivers for California families:
  • Select Committee on Child Care Costs
    • The first hearing was held on Wednesday, August 25, bringing together parents, educators, providers, and experts to examine and begin to explore solutions for the shortage of child care slots, skyrocketing costs, low educator pay, and the economic toll on families and California’s workforce.
  • Select Committee on Housing Finance and Affordability
    • The first hearing was held on Wednesday, August 27, bringing together state agencies such as the California Housing Finance Agency and California Department of Housing and Community Development, as well as affordable housing advocates and private developers. The committee explores creative financing solutions to accelerate affordable housing production.
  • Select Committee on Transportation Costs and Impact of the Low Carbon Fuel Standard
    • The first hearing was held on Wednesday, August 27, looking into whether the Low Carbon Fuel Standard (LCFS) program is effectively balancing environmental goals with the rising cost of living for Californians and working to improve transparency, accountability, and benefits for residents.
  • Select Committee on CalFresh Enrollment and Nutrition
• The Utilities & Energy Committee, chaired by Assemblywoman Cottie Petrie-Norris, also has conducted a series of oversight hearings to examine different cost pressures on utility service affordability, including two hearings already completed on wildfire mitigation and transmission infrastructure costs. These hearings will continue throughout this year on other utility cost issues.

Learn more about the Assembly’s comprehensive plan for affordability and the real results delivered.

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For more information, follow Speaker Robert Rivas at the following social media channels:

Instagram: @caspeakerrivas

Facebook: www.facebook.com/CASpeakerRivas/