These New Laws Help Improve Affordability in California

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

Assembly Democrats responded and delivered, both with new laws that will make it easier to build homes in California, addressing the No. 1 cost-driver for working families, and also by passing dozens of solutions to move the needle on affordability, including:

• Building more housing faster, reducing red tape for home-builders and delivering more certainty for families who intend to build, which will allow workers to live closer to their jobs, in the cities and metro areas where Californians need housing affordability options the most
• Providing bigger energy bill rebates to families and expanding fuel options to stabilize gas prices
• Delivering real savings to families, workers and businesses and addressing the key cost-drivers for California households

The Biggest Housing Affordability Reforms in Decades

Landmark housing affordability laws championed by Speaker Robert Rivas and Assembly Democrats will usher in a new chapter for building homes faster and improving affordability across California.

Democrats advanced these reforms early in the legislative year, recognizing the urgent need for bold, immediate action to change the trajectory of housing and affordability in the state.

These laws will accelerate the construction of new homes, give builders and homeowners greater clarity and certainty, reduce red tape and bureaucracy, and expand housing options for renters and future homebuyers.

Assembly Bill 130 — which incorporates the work of AB 609 (Assemblymember Buffy Wicks) and AB 306 (Assemblymember Nick Schultz) — will increase infill housing near major job centers and reduce costly delays by providing clarity for builders and homeowners.

Together, these new laws mark a major step forward in removing barriers, lowering costs, and making it easier for Californians to build and access affordable housing — all without additional costs to the state budget.

These reforms are broadly supported by workers, community leaders, and environmental justice organizations who have long called for solutions that balance affordability, sustainability, and equity.

Here is What Labor, Business, and Community Groups Say About the Landmark Housing Laws

Larger Rebates on Your Energy Bills, New Fuel Options to Stabilize Prices

California’s new energy affordability and climate laws will continue to help families in the new year, delivering larger rebates on electricity bills, more dependable energy sources, and maintaining the state’s national leadership in reducing pollution. 

These measures passed the Legislature and were signed in the fall, representing one of the most comprehensive efforts in the country to make energy cleaner, cheaper and more reliable for families.

The package also authorizes the sale of an additional gasoline blend, E15, in California, to stabilize fuel costs as the state Air Resources Board continues to study it. 

With these laws now moving into implementation, Californians will begin to see meaningful results, including:

• Lower electricity bills: AB 1207 by Assemblymember Jacqui Irwin extends “Cap and Invest” and is estimated to return $3 billion every year in Climate Credits on Californians’ utility bills.
• More dependable, affordable energy: AB 825 by Assemblymember Cottie Petrie-Norris allows for a bipartisan Western partnership that will deliver cleaner, cheaper, more reliable power — expected to save Californians upward of $1 billion annually on energy costs.
• Job creation: These laws are projected to generate 287,000 new jobs through 2045, supporting a stronger clean-energy workforce.
• Community investments: Significant funding will invest in affordable housing, cleaner transit, wildfire prevention, safe drinking water, and healthy-air programs.
• More stable fuel prices: New safeguards help maintain an affordable and dependable supply of transportation fuels, providing families better protection from sudden spikes at the pump.

Putting Money Back in Your Pockets

Every dollar counts — and many of California’s newest laws are focused squarely on delivering real financial relief. 

A suite of new affordability measures passed by Assembly Democrats will help families keep more of what they earn and stabilize costs of housing, utilities, transportation and essential services.

These new laws reflect a clear priority: support working families, strengthen consumer protections, and put California on a path to greater affordability.

New laws taking effect this year include:

• Empowering Rideshare Drivers: AB 1340 by Assemblymember Buffy Wicks gives more than 800,000 rideshare drivers the choice to join a union and negotiate for fair wages, benefits, and protections, creating the largest organizing effort in a generation.
• Increasing Rebates for Utility Bills: AB 1207 by Assemblymember Jacqui Irwin 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: AB 578 by Assemblymember Rebecca Bauer-Kahan requires full refunds for undelivered or incorrect orders on food delivery be returned to the original payment method.
• Safeguarding Competitive Pricing: AB 325 by Assemblymember Cecilia Aguiar-Curry protects consumers from price increases by making pricing algorithms subject to state antitrust law.
• Protecting Homeowners: AB 1327 by Cecilia Aguiar-Curry updates consumer protection laws to allow homeowners to cancel certain home improvement and home solicitation contracts by email or phone.
• Protecting Tenants: AB 246 by Assemblymember Isaac Bryan prevents eviction of tenants if there are delays or reductions in Social Security benefits affecting their rent payments.
• Returning Security Deposits Electronically: AB 414 by Assemblymember Gail Pellerin allows landlords to return security deposits electronically when tenants choose that option.
• Improving Rental Car Transparency: AB 1374 by Assemblymember Marc Berman 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.
• Lowering Rideshare Costs: SB 371 removes burdensome insurance requirements for rideshare drivers, while still ensuring strong protections against raising costs to riders.

In addition to the new laws taking effect in 2026, several major affordability measures have already become law in 2025 and during the past year, including:

• Capping Security Deposits: AB 12 by Assemblymember Matt Haney limits security deposits 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: AB 2123 by Assemblymember Diane Papan guarantees workers 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: AB 2017 by former Assemblymember Tim Grayson (now a state Senator) protects Californians from excessive and unfair banking fees, helping avoid unnecessary costs.
• Easier Subscription Cancellations: AB 2863 by Assemblymember Pilar Schiavo makes it simpler for consumers to cancel subscriptions and avoid hidden or recurring charges.
• Getting Back Security Deposits: AB 2801 by former Assemblymember Laura Friedman (now a Congress member) helps ensure renters get their security deposits returned fairly and on time.
• Rewarding On-Time Rent Payments: AB 2747 by Assemblymember Matt Haney now counts on-time rent toward building good credit, helping renters build financial security.
• Streamlining ADU Construction: AB 3057 by Assemblymember Lori Wilson makes building Accessory Dwelling Units (ADUs) faster and easier, creating more housing options for families and communities.
• Protecting Californians from Medical Debt: SB 1061 by Senate President Pro Tem Monique Limón prevents Californians from being buried in unfair or unexpected medical debt.

Next Steps for a More Affordable California

California’s affordability crisis didn’t begin overnight and will not be solved in a single year. 

Tackling the cost of living in a meaningful and lasting way requires sustained attention and real engagement with the everyday challenges working families face. 

Speaker Rivas will continue driving his long-term affordability strategy in 2026 to confront the root causes of economic pressure and deliver real relief.

The Committee on Economic Development, Growth, and Household Impact chaired by Assemblymember José Luis Solache Jr., will continue to examine real cost pressures facing Californians — from macroeconomic trends to day-to-day household impacts. 

Speaker Rivas’ four select committees focused on the largest cost-drivers for California families have met several times this year, and remain committed to finding solutions to address the most significant expenses for hardworking Californians:

• Select Committee on Child Care Costs — Will continue meeting with parents, providers, and experts to identify solutions to the shortage of affordable child care, low educator pay, and the broader economic impact on working families.
• Select Committee on Housing Finance and Affordability — Will build on its work with state agencies, affordable housing advocates, and developers to explore creative financing tools that can accelerate affordable housing production.
• Select Committee on Transportation Costs and Impact of the Low Carbon Fuel Standard — Will continue examining whether the LCFS program is striking the right balance between environmental goals and cost impacts on families, while working to improve transparency and accountability.
• Select Committee on CalFresh Enrollment and Nutrition — Will keep working to strengthen food access by examining barriers to enrollment and identifying opportunities to reduce hunger and improve nutrition statewide.

The Utilities & Energy Committee, chaired by Assemblywoman Cottie Petrie-Norris, will continue its oversight hearings to examine different cost pressures on utility service affordability throughout the new year. It has already held two hearings on wildfire mitigation and transmission infrastructure costs.

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/