Hi John,

Last week, Governor Newsom released his May Revise to the 2025-26 state budget, announcing a $12B deficit and offering a dire updated proposal with no funding for the major state housing programs. 

Now, we enter a critical period of the state budget process that could make or break our priorities. Over the next several weeks, we must show up to advocate for the inclusion of affordable housing programs in the state budget. Read more below on how to join our collective efforts.

Our analysis explores four key points on what this updated proposal means for our collective work ahead as the affordable housing industry:

• The state’s financial outlook has greatly worsened since the Governor’s January proposal. While the administration anticipated a $363M surplus this year, market instability, uncertainty, massive cuts on the federal level, and the devastating Los Angeles fires have plummeted the revenue outlook.
   
• This proposal is harmful to our progress, but there are important areas of consensus. California’s worsening financial picture resulted in a budget from the Governor that includes no new housing revenue. Areas of consensus in the May Revise are strong starting places in this next stage of negotiations and offer California important ways to advance housing goals beyond the ups and downs of budget cycles.
   
• We are now in the height of budget season and have work to do. We now must turn to our housing champions in the Legislature who have one month to revise the proposal and pass a balanced budget. The Governor will then have two weeks to sign it. In that time, we need to do outreach to legislators and stress that investments in affordable housing are even more important in times of economic uncertainty.
   
• NPH is counting on our members and partners to show up for housing in the next month. Now, it is absolutely critical to urge our local lawmakers, and especially within districts with affordable developments, to fight for affordable housing investments.

✅ Ready to Take Action? 

✊ Urgent Action NOW: Tell your local lawmakers to fight for affordable housing investments! First, use this comprehensive budget advocacy toolkit from Enterprise to make the case for how a lack of funding for critical housing programs impacts your work and your community. Second, if you have won or plan to apply for AHSC funding, please stress the importance of housing’s allocation from the Greenhouse Gas Reduction Fund (GGRF).

📜 In It for the Long-Haul? Go deeper with us and help shape and inform our policy priorities! Join NPH’s Legislative Issues Working Group and help make preliminary recommendations to guide NPH’s position on legislative issues. (Working Groups are for NPH members only. Join/renew today. To confirm your membership status, or for any questions about your membership, please contact Oksana at [email protected].)