How Federal Housing Reform Could Impact Californians

Here are the morning’s top stories on Tuesday, March 17, 2026

• California’s housing crisis is spreading to other states. Congress is finalizing a package of bills some national housing experts say are among the most significant reforms to come out of the federal government in decades. Some of the bills are inspired by laws California has already passed. So what does this package do for us?
• California regulators are pushing back after the Trump Administration ordered a Texas-based oil company to restart pipeline operations along the Central Coast.

Congress advanced some major housing reforms. Here’s how it could impact California

As California’s housing crisis spreads across the country, Congress is finalizing a package of bills to forestall the worst of the Golden State’s fate by proposing what some national experts say are among the most significant federal housing reforms in years. The proposed bills attack the country’s housing shortage at multiple angles: from innovating construction methods to simplifying federal programs to encouraging localities to plan for more housing.

Local housing activists say Congress’ bills are unlikely to result in big changes here, but that some could support California’s goal of building 2.5 million homes by 2030 by jumpstarting construction innovation and further streamlining existing laws. “The federal government could be doing a lot more to really put the pedal to the metal, but this is a good first step,” said Laura Foote, executive director of YIMBY Action.

Both the House and Senate have been working on bipartisan bill packages since last year, which were consolidated earlier this month into the 21st Century ROAD to Housing Act. Last week, the Senate approved the package, but House leaders have called for a conference to discuss changes to the bill. At the center of the debate is a recently added provision, which limits large institutional investors from buying single-family homes, a proposed rule President Donald Trump requested in February. On Friday, he announced his own set of reforms: two executive orders aiming to tackle both supply and demand. One order seeks to remove regulatory barriers, such as green building mandates, from permitting requirements, while the other loosens mortgage lending regulations for community banks, according to the White House’s fact sheets.

California experts say, should Congress’ suite of bills pass, it could amplify or complement efforts locally in some of the key areas they say have been clogging the housing production pipeline for years: old construction methods, lengthy environmental reviews and outdated regulations. Reforming some of those outdated federal regulations could help boost the state’s factory-built housing industry, which local lawmakers are paying close attention to this year. Congress’ package includes multiple provisions to improve financing for modular housing and removes outdated safety standards that industry experts argue makes manufactured housing more expensive. If passed, the federal regulations could work in lockstep with local bills encouraging modular and factory-built housing construction across California. State Assemblymember Buffy Wicks, a Democrat from Berkeley, plans to soon introduce a package of state bills aimed at the issue.

State officials threaten legal action after federal order restarts oil pipeline near Santa Barbara

California officials are preparing for possible legal action after the Trump administration ordered the restart of a controversial offshore oil operation along the state’s Central Coast. The California State Lands Commission held an emergency meeting Monday after Texas-based Sable Offshore Corp. resumed sending oil through the Santa Ynez pipeline system near the Gaviota Coast.

Company officials say they restarted the pipeline Saturday under a federal order issued by U.S. Energy Secretary Chris Wright using the Defense Production Act, a Cold War-era law that allows the federal government to direct private companies to prioritize production tied to national defense.

California officials argue the move bypasses state environmental and safety laws and existing court rulings. “Today what we’re doing here is putting the federal government and any entities that use state lands on notice,” said Malia Cohen, who chairs the commission. “We have jurisdiction over public trust lands and tidelands in California, and any attempt to circumvent our jurisdiction will be challenged.”

The Santa Ynez pipeline system has been largely idle since the Refugio oil spill in 2015, when a ruptured pipeline sent thousands of gallons of crude oil into the ocean, damaging coastal habitats and fisheries. Environmental groups and advocates have urged regulators to block the restart, warning it could increase the risk of another spill and argue the project has not undergone a new environmental review. “A defective pipeline operating at high pressure with no legal guardrails is a threat to public safety, to our economy, and to the entire coast,” said Environmental Defense Center Executive Director Alex Katz.