Gavin Newsom Backs $11.25 Billion Bond Measure To Boost Home Construction in California

California Governor Gavin Newsom is advocating for a $11.25 billion housing bond measure, the Veterans and Affordable Housing Bond Act of 2026, to be placed on the November ballot. This proposal, agreed upon by the governor, state Senate, and Assembly, aims to significantly increase residential construction and homeownership opportunities across the state. The core of the measure, $10 billion in general obligation bonds, will fund the construction, rehabilitation, acquisition, and preservation of affordable housing for low-income Californians, including provisions for down payment assistance and low-interest mortgages. These bonds are slated for repayment through state tax revenues over 35 years, a detail that has drawn scrutiny from some Republican legislators. Proponents, such as Assemblymember Buffy Wicks, estimate that the measure could facilitate the construction of 40,000 housing units, providing stable homes for 40,000 families. A separate component of the act allocates $1.25 billion in self-supporting revenue bonds for the CalVet Home Loan Program, specifically designed to assist veterans and military families in purchasing homes. These revenue bonds are intended to be repaid through veteran mortgage payments, thus not requiring taxpayer funding. California currently faces a deficit of at least 1.2 million affordable housing units to meet existing demand. The proposed act also directs funds towards California's Multifamily Housing Program and supports affordable housing and homeownership initiatives for various demographics, including seniors, farmworkers, tribal communities, college students, and those experiencing or at risk of homelessness.