Fighting to Lower Costs: Success for CalChamber's Affordability Agenda in 2026

CalChamber’s Affordability Agenda achieved strong results for the state’s business community this year, with only one Cost Driver bill signed into law and one Cost Cutter measure enacted following Governor Newsom’s final bill actions.

The Affordability Agenda was unveiled in March and updated as bills were introduced, amended, and advanced through the legislative process. The 2025-2026 legislative session adjourned Aug. 31, and Gov. Gavin Newsom had until Sept. 30 to take final action on the bills that reached his desk.

In all, 31 proposals were designated as Cost Drivers because they would have increased costs and made California less affordable for businesses and consumers.

Only six bills were determined to be Cost Cutters, proposals that would improve California’s business climate.

Cost Drivers: One Signed, One Vetoed

Through the advocacy efforts by CalChamber along with local chambers of commerce and allied groups, an overwhelming majority of those bills did not advance as originally proposed.

In fact, all but two bills identified as Cost Drivers failed to reach the governor for final consideration. Of those bills, only one was signed into law and the other was vetoed.

The vetoed bill was AB 2575 (Ortega; D-San Leandro) and would have discouraged the use of artificial intelligence tools in health care facilities, including unworkable liability provisions that would have reduced access to beneficial technologies.

The governor signed into law AB 2646 (Krell; D-Sacramento), which will establish an industry-specific minimum wage for the H-2A program, creating significant costs for California farms that would ultimately result in higher food prices.

Cost Cutters: One Signed, One Vetoed

The Affordability Agenda also highlighted bills aimed at lowering the cost of living and doing business in the state. The two Cost Cutter measures that reached the governor’s desk addressed energy policy decision-making and building improvement permitting.

The signing of AB 1693 (Zbur; D-Hollywood) will streamline the permitting process for retail businesses looking to make improvements to their stores, supporting the state’s small business community. The author described AB 1693 as a “common-sense solution” that allows licensed architects or engineers to certify that plans meet all building and safety codes, while requiring local governments to act on complete applications within clear, predictable timelines.

The governor vetoed AB 2124 (Pacheco; D-Downey). It would have helped address rising electricity costs by requiring third-party review of proposed state programs with financial impacts on utility ratepayers. In the veto message, the governor said the decision was due, in part, to the existence of available resources to analyze pending legislation, and that the money needed to implement AB 2124 was not included in this year’s state budget agreement.

Now in its second year, the Affordability Agenda builds on CalChamber’s longstanding efforts to track bills threatening job growth and retention and advance policies that make California a more affordable place to live, work, and do business.