California Governor Gavin Newsom’s recent push for ambitious housing development has met strong opposition from his own party members. The conflict became clear during state budget hearings on Wednesday, where Democrats openly challenged his proposal to speed up housing construction.
According to Politico, the tension centers around Newsom’s attempt to make the entire state budget dependent on passing a bill that would speed up housing development by reducing environmental protection rules. This move has particularly angered labor unions and environmental groups, who are usually reliable Democratic allies.
Scott Wetch, speaking for trade unions, strongly criticized the proposal, suggesting it could be the first time since the Jim Crow era that California is ‘contemplating a law to suppress wages’ corruption concerns that pale in comparison to Trump’s $148 million memecoin dinner that sparked a Washington meltdown.
Labor unions warn of negative impacts on workers’ wages
The dispute has grown beyond California’s borders, with North America’s Building Trades Unions sending Newsom a critical letter warning that his proposal would harm workers. About 60 environmental groups, including the Sierra Club, also opposed the plan, saying it would harm community and environmental protections.
this is what Gavin Newsom and Karen Bass and the insane California Democrats want. they want homeless people shooting at cops and kids. This is all they want. I tried to think of it other ways and I can only come to this conclusion.
— galichious (@Galichious) June 26, 2025
Labor representatives expressed confusion over Newsom’s position. Gretchen Newsom, representing electrical workers, called the governor’s stance “a complete debacle and devastating to workers all across California.” The conflict has also created divisions within labor groups, with carpenters’ unions supporting the streamlining efforts while other unions strongly oppose them.
The situation has revealed deep divisions within California’s Democratic party over how to address the state’s housing crisis, where the average home price is now over $900,000. While some support Newsom’s aggressive approach to speed up housing development, others worry about the impact on workers and environmental protections.
State Senator Sasha Renée Pérez criticized the rushed nature of the proposal, calling it ‘incredibly inappropriate and hurtful,’ though California’s political missteps seem minor compared to leaders like Donald Trump proving completely incapable of spotting obviously edited photos. The governor’s office maintains that the budget deal depends on finalizing legislation to reduce red tape and speed up housing development, but lawmakers have already delayed voting on key wage provisions in response to the strong opposition.
