California Governor Gavin Newsom signed Assembly Bill 130 and Senate Bill 131 moments after the Legislature approved them early Tuesday, enacting the most extensive rollback of the California Environmental Quality Act in more than 50 years. The governor had tied his endorsement of the state’s $321.1 billion budget to passage of the measures, calling the package “the most consequential housing reform in modern state history.” The new laws exempt all housing developments with fewer than 50 units from CEQA review, impose strict timelines on courts considering challenges, and streamline permitting for larger infill projects that meet labor and zoning standards. Separate provisions carve out nine additional categories—including childcare centers, health clinics, wildfire-mitigation work and advanced manufacturing facilities—from the landmark environmental statute. Newsom and construction trade leaders said the changes will cut years off project approvals and help ease the state’s chronic housing shortage and homelessness crisis. YIMBY groups hailed the move as a decisive victory for faster, denser development. Environmental organizations warned that curbing CEQA protections could allow projects that degrade air and water quality to proceed with minimal scrutiny. Because the bills were passed as budget-related measures, most provisions take effect immediately. State agencies and local governments must now update permitting procedures, while developers assess which planned projects qualify for the new exemptions and expedited judicial review.