California State Budget Reduces Barriers to Housing Production and Extends Deadline for Regional Early Action Planning (REAP 2.0) Program   

The governor signed the 2025-2026 state budget, which includes a suite of reforms to reduce barriers to housing production. The two budget trailer bills, AB130 and AB131, include several provisions to streamline application of the California Environmental Quality Act (CEQA) to housing development. These reforms are consistent with long-standing priorities in SCAG’s legislative platform and provisions previously included in SB 607, which SCAG’s Regional Council voted to support.

The trailer bills also include a six-month extension for expenditures under the Regional Early Action Planning (REAP) program. This extension helps to make up for time lost during proposed cuts to the REAP program during the 2024 state budget process, which jeopardized SCAG’s $231 million in funding from this program, most of which had been granted to projects throughout Southern California. SCAG staff will work with California Department of Housing and Development (HCD) to determine how the time extension will be administered and how this affects SCAG’s timeline for delivery of the program. 

“SCAG applauds the governor and legislature for creating an easier path for producing more housing in California. We are grateful for their continued support of local and regional efforts to address the housing affordability crisis, including our Regional Early Action Planning grant program,” said Kome Ajise, Executive Director of SCAG.