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California’s New Governor Would Punish Cities Over Affordable Housing

Gavin Newsom wants to withhold transportation funds from areas that don't meet housing targets. But some worry that could punish California’s poorest.
California Governor Gavin Newsom presents his first state budget in Sacramento.
California Governor Gavin Newsom presents his first state budget in Sacramento.Rich Pedroncelli/AP

As part of his first proposed budget, new California Governor Gavin Newsom has floated an idea that would aggressively reform the state’s housing supply laws: Withhold transportation funds from local governments that fail to meet new housing production targets.

“This is a new day and we have to have new expectations, new requirements,” Newsom said at a Thursday news conference following the release of his 2019-2020 budget.