Governor Newsom Proposes Withholding Funds from Cities that Don’t Meet Housing Goals

Summary: In his proposed budget, Governor Newsom allocated $2 billion for housing initiatives. But perhaps the bigger housing news is money that Newsom has threatened not to distribute. Specifically, the governor says that he will withhold transportation funding from regions that fail to meet new housing goals. Supporters of the idea like the additional incentive for communities to build. But critics say that homebuilding is complex, ruled by market forces and that cities shouldn't be punished for forces outside their control.