Assembly Floor
- Josh Lowenthal
Legislator
The Assembly is now in session. On this historic day. It is assemblymember wallace that notices the absence of a quorum. Sergeant arms will prepare the chamber and bring in the absent Members. Clerk will call the roll.
- Josh Lowenthal
Legislator
Members and guests, welcome. We welcome you today and every day to the People's House, the great state of California. A quorum is present. Thank you. Members. We ask our guests and visitors in the rear of the chamber and in the gallery to please stand for the prayer of the SAC flag Salute. Reverend Oshita will offer today's prayer. Reverend Oshita.
- Reverend Bob Oshita
Person
Please join me in a moment of reflection. It is interesting. Confucius said one who wishes to teach or to lead others should play music for four hours a day. It is also said that the historical Buddha would engage in solitary meditation for four hours a day.
- Reverend Bob Oshita
Person
And also, interestingly, the late Archbishop Desmond Tutu would begin each day with four hours of prayer. Whether it is playing music, meditating or with prayer, these spiritual teachers encouraged the need to engage in calming self reflection to help remain centered. In trying to play music, we naturally reflect on how we feel.
- Reverend Bob Oshita
Person
It is impossible to play when we are angry or preoccupied. So too is it impossible to meditate or pray when we are upset, distracted or unfocused. The greater the responsibilities of leadership, the more there is a need for deep and quiet reflection in each day. Remembering again the humility it takes to truly lead.
- Reverend Bob Oshita
Person
Let us all embrace our responsibilities of leadership with daily self reflection. Whether it is with music, meditation or prayer, self reflection can help keep us focused and undistracted. As we continue to try to set the bar of leadership high, Let us try to live with kindness and gratitude beyond words.
- Josh Lowenthal
Legislator
Members, we were all shocked and saddened to hear the news last week of the passing of Congressman Doug Lamotha. He was a devoted public servant who will be deeply missed. We send our heartfelt condolences to his wife Jill, his family, friends, colleagues. I ask that we observe a moment of silence for the honorable Doug Lamolfa.
- Josh Lowenthal
Legislator
Now we ask our guests and visitors to remain standing and join us in the flag salute. Assemblymember Quirk Silva will lead us in the Pledge of Allegiance.
- Sharon Quirk-Silva
Legislator
Members, as we begin the year of. 26 and the year of our birthday, 2250 years of our great country, America. Let us salute our flag with robustness. And with reflecting on the meaning of our flag salute. Ready. Begin. I pledge allegiance to the flag, Liberty and justice for all.
- Josh Lowenthal
Legislator
Without objection, let us recognize. Thank you. Thank you, everyone. Thank you. Everyone. Please take your seats. Coram. Thank you. Members, let us recognize that we are on Native land. We acknowledge that California State Capitol sits on the ancestral homelands of the Miwok and the Nisenan people, where a monument stands on Capitol grounds in their honor.
- Josh Lowenthal
Legislator
The broader Sacramento region comprises the ancestral homelands of the Miwok, the Nisenan, the Patwin and the Southern Maidu people. Thank you, Members. We recognize that all Native American peoples have a deep connection to the land and made significant contributions to California, United States and to the world.
- Josh Lowenthal
Legislator
It is without a doubt very important for the Legislature to help ensure that Native American tribes across California can grow and carry forward their tribal cultural knowledge and teachings on behalf of all Californians. This reflects our commitment to maintaining strong relationships with Native Americans in the state of California and across our nation. To our guests and visitors.
- Josh Lowenthal
Legislator
Today, state law prohibits persons in the chamber from interfering with legislative proceedings or disrupting the orderly conduct of official business. Persons disrupting legislative proceedings are subject to removal, arrest or other appropriate legal remedies. Reading of the previous day's journal.
- Committee Secretary
Person
Assembly chamber Sacramento Friday, September 122025. The Assembly met at 1pm The Honorable Josh Lowenthal, Speaker Pro Tempore of the Assembly, presiding. Chief Clerk Cat the desk.
- Josh Lowenthal
Legislator
Majority Leader Aguiar Curry moves and Ms. Sanchez seconds, that the reading of the previous day's journal be dispensed with presentations and petitions. There are none. Introduction and reference of bills will be deferred. Reports of committees will be deemed read and amendments deemed adopted. Messages from the Governor will be received in the Joint Convention. Messages from the Senate?
- Josh Lowenthal
Legislator
There are none. Members, before we begin the joint convention, please clear your desks. Put any items you may have inside your desk. All tops of your desk, put items away now. All flags, all drinks off your desks. Now. Moving on to motions and resolutions. Today's absences will be deemed read and printed in the Journal.
- Josh Lowenthal
Legislator
Majority Leader Aguiar Curry, you are recognized for your procedural motions.
- Cecilia Aguiar-Curry
Legislator
Good morning, Mr. Speaker. I request unanimous consent to suspend Assembly Rule 118A to allow Speaker Revis to have guests on the floor at the rostrum and at the rear of the chamber today.
- Cecilia Aguiar-Curry
Legislator
Pursuant to Assembly Rule 96, I request unanimous consent to re refer AB277 Alanis from the Human Services Committee to the Public Safety Committee and then back to the Human Services Committee.
- Cecilia Aguiar-Curry
Legislator
Pursuant To Assembly Rule 97, I move to Re Refer File 81 AB710 Irwin to the Utilities and Energy Commission.
- Cecilia Aguiar-Curry
Legislator
I request unanimous consent to suspend Assembly Rule 56 to allow the following committees to notice bills pending for re referral. Housing and Community Development Committee to notice AB739 Jackson for their hearing on Wednesday, January 14th.
- Cecilia Aguiar-Curry
Legislator
Pending re referral from the Business and Professions Committee Local Government Committee to notice AB748 Harbin and AB874 Avila Farias for their hearing on Wednesday, January 14. Pending re referral from the Housing and Community Development Committee Human Services Committee to notice AB277 Alanis for their hearing on Tuesday, January 13.
- Cecilia Aguiar-Curry
Legislator
Pending re referral from the Public Safety Committee Human Services Committee to notice AB673 Jackson for their hearing on Tuesday, January 13th. Pending re referral from the Education Committee Water Parks and Wildlife Committee to notice AB946 Bryan for their hearing on Tuesday, January 13th.
- Cecilia Aguiar-Curry
Legislator
Pending re referral from the Natural Resources Committee, Arts and Entertainment, Sports and Tourism Committee to notice AB892 Schultz for their hearing on Thursday, January 15th.
- Cecilia Aguiar-Curry
Legislator
Pending re referral from the Water Parks and Wildlife Committee and for the Judiciary Committee to notice the following bills for their hearing on Thursday, January 15, AB501 Papan and AB 871 Stephanie Pending Re referral from the Banking and Finance Committee AB 634, Jeff Gonzales pending re referral from the Health Committee, AB 1159 Addis pending re referral from the Privacy and Consumer Protection Committee and AB 1382 Castile pending Re referral from the Business and Professions Committee
- Cecilia Aguiar-Curry
Legislator
At the request of the author, I am giving a one day notice to remove item A20, AB362 Ramos from the Inactive file.
- Josh Lowenthal
Legislator
Clerk will note that objection, motions and resolutions are now concluded. Members, we are now going to recess the regular session as guests arrive for the Joint Convention.
- Robert Rivas
Legislator
We will now convene the Joint Convention everyone, please take your seats. Members and guests, the Governor has arrived in the chamber. I'm appointing a joint Committee to escort the Governor to the rostrum. The following Assembly Members and Senators should retire to the rear of the chamber.
- Robert Rivas
Legislator
Assembly Members Alawari, Flora Gibson, Irwin Quirk Silva, Stephanie Nsolache, Senators Allen Caballero, Durazzo, Hurtado, Jones Umberg and Wahh. Members and guests, Please welcome the 40th Governor of the great state of California, the Honorable Gavin Newsom.
- Robert Rivas
Legislator
We have several honored guests with us today, so please join me in welcoming the first partner, Jennifer Siebel Newsom. Please join me in welcoming the constitutional officers of California. Lieutenant Governor Eleni Kounalakis. Secretary of State Shirley Weber. Treasurer Fiona Ma. Attorney General Rob Bonta. Superintendent of Public Instruction Tony Thurmond. State Controller Malia Cohen.
- Robert Rivas
Legislator
With us today from the Board of Equalization, from District 2, Sally Lieber. And from District 3, Tony Vazquez. Please join me in welcoming the Justices of the California Supreme Court, the Chief Justice Patricia Guerrero. Associate Justices Goodwin Liu, Leondra Kruger, Joshua Groban, and Kelli Evans. Also want to welcome our esteemed consular corps who are with us.
- Robert Rivas
Legislator
And finally, welcome to all other distinguished public officials and special guests joining us this morning. And before we start this morning's proceedings, I want to begin by calling for a moment of silence. A moment of silence to honor Renee Nicole Good, a US citizen murdered by ICE yesterday in Minneapolis.
- Robert Rivas
Legislator
And for the countless immigrants who have been detained, who have been denied due process and are being held without charge in deplorable conditions across our country. America is a nation of immigrants, and we are nothing... We are nothing without the rule of law.
- Robert Rivas
Legislator
Please join me in honoring Ms. Renee Nicole Good and so many others suffering in these unprecedented times. Thank you. And again, I want to welcome you all to this Assembly Chamber. I want to welcome the people of California who are listening and watching today.
- Robert Rivas
Legislator
It is an honor to welcome our Governor, Gavin Newsom, for his final State of the State address. So, Governor, your bold, trailblazing leadership has strengthened opportunity, and it's helped shape California's future for generations to come. On behalf of everyone gathered in this chamber today, we extend our sincere gratitude. And now it is my pleasure to introduce my colleague, our colleague, our friend, the President Pro Tem of the California State Senate, the Honorable Monique Limón.
- Monique Limón
Legislator
Thank you. Thank you. Thank you. Thank you. Thank you. Thank you so much. Thank you, Mr. Speaker, for that introduction and for bringing all of us together. My Senate colleagues and I have the honor to be here in the Assembly Chambers to hear our Governor's vision for his last year leading our great state. The Senate stands ready to work in partnership with the Assembly and our Governor to advance the lives of almost 40 million Californians who call this great state home.
- Monique Limón
Legislator
And now, as the 50th President Pro Tempore of the California State Senate, it's my honor to introduce the first woman elected to serve as Lieutenant Governor, the Honorable Eleni Kounalakis. As a former US Ambassador, her leadership is rooted in diplomacy and collegiality, something these challenging times call for.
- Monique Limón
Legislator
And here, in her role as Lieutenant Governor, she has shaped to ensure that Californians have greater access to housing, education, and health care, priorities that my Senate colleagues and I share. Please help me in welcoming the 50th Lieutenant Governor for the State of California, Eleni Kounalakis.
- Eleni Kounalakis
Person
Thank you. Thank you. Mr. Speaker, Madam Pro Tem, Members of the California Legislature, and all the guests with us today. Seven years ago, I stood in this chamber to introduce Governor Gavin Newsom for his first State of the State address.
- Eleni Kounalakis
Person
Back then, none of us could have imagined the scale of the challenges ahead or how dramatically they would test California and our system. As we now enter the final year of the Newsom Administration, we do so having navigated a global pandemic, historic economic disruption, relentless climate emergencies, and moments of profound national division.
- Eleni Kounalakis
Person
Often while standing firm in the face of a hostile, unpredictable, and at times deeply cruel federal government. Throughout these tests, California chose action over hand wringing and solutions over cynicism. We protected workers and small businesses in the depths of crisis. We rebuilt our economy much faster than expected.
- Eleni Kounalakis
Person
And we made historic investments in education, housing, health care, and climate action. At a time when people across the country and around the world are questioning whether democratic institutions can still solve big problems, California's experience offers a clear answer. This morning's State of the State is not just a preview of the year ahead.
- Eleni Kounalakis
Person
It is a reaffirmation of what effective, accountable government can achieve, especially when it is led by a Governor who measures leadership by impact, who believes deeply in the promise of California, and who has never backed down from the responsibility of governing in difficult times.
- Eleni Kounalakis
Person
Governor, I'd like to also take this opportunity to thank you for the partnership you created between us and our offices. It is a rare accomplishment, and I am especially grateful for the trust you placed in me to serve as your representative for international affairs and trade.
- Eleni Kounalakis
Person
As a former United States Ambassador, and as the members of the consular corps here can attest, California's role on the global stage has never mattered more. The world is quite literally watching. Ladies and gentlemen, the 40th Governor of the State of California, Gavin Newsom.
- Gavin Newsom
Person
Thank you. Thank you, everybody. Thank you. Thank you, everybody. Thank you, Madam Lieutenant Governor to the Speaker. I'll pick up on your remarks. To the person who should be given the State of the State based on your reaction, our new Senate Pro Tem, Monique. My gosh, what is that?
- Gavin Newsom
Person
Clearly still in your honeymoon phase. You're going to enjoy it. I'm just saying. By the way, I was looking for some response from some of the folks over here on the right. When the Speaker said this is his last state of the state, I was assuming DeMaio would look up and maybe applaud or something.
- Gavin Newsom
Person
So hopefully a few of them are shaking their head. They're looking forward to this. The sad thing for you, you're going to have to endure about 45 to 50 minutes to this. And I say endure because we're all in this together, including myself.
- Gavin Newsom
Person
The reason I've been back here in a few years is, as you know, I have no problem speaking, and perhaps, you know, sometimes a little more long windedly than people like. But when it comes to the written text, that has never served me well.
- Gavin Newsom
Person
I did a little children's book a few years back that sort of exposed the truth, the ugly truth about my challenges with reading. You know, I'm not shy or, you know, embarrassed about my 960 SAT score, but I am a little bit about my inability to read the written text.
- Gavin Newsom
Person
And so it's always been something that I have to work through and I'm confronting. And so I say that with grace. I say that with the humility that's at hand today. And I also say that in the spirit, as I said, of what the Speaker was saying. For some of you may have been a little jarring what he said.
- Gavin Newsom
Person
For others was more than appropriate. The stress that many of us are feeling, the stacking of stress in that journey the Lieutenant Governor is talking about over the last seven years. And I don't think we've given ourselves the kind of grace that we deserve.
- Gavin Newsom
Person
We never had time to really reflect on everything we've been together. Last time I talked here was 2020. All of a sudden everything was virtual, and we came right out of that. And the social unrest, supply chains, inflation, all this stacking of stress. And so I'll try to reflect some of that in my comments today.
- Gavin Newsom
Person
I'll say things that may be piercing to some of you, but it's not intended to demean, it's not intended to divide. But I'm speaking from my heart. I'm saying what I think, again, with the grace and humility to know that I am constantly a work in progress.
- Gavin Newsom
Person
I'm learning on this job, seven plus years learning every single day and proud and closing as I jump into the speech of all of you and all that I've learned from each and every one of you. Each and every one of you, regardless of your politics, regardless of your faith, regardless of where you live and who you voted for.
- Gavin Newsom
Person
I just want to express gratitude. Every single person in this chamber, every single person that shaped who we are today and what this state represents. Not just today, but tomorrow. But first, I... Speaking of shaping things, I've been thinking a lot about, you know, your final speech.
- Gavin Newsom
Person
Think about your life, think about your journey, think about the things that shaped you. And I'll begin a little bit with that. About having spent nearly my entire life, now almost six decades, along the rivers of this remarkable state.
- Gavin Newsom
Person
From my youthful days on the upper American River with my dad to my time with my own children, downriver, not too far from here. Those rivers that have shaped the story, not only my life, but shaped the story of California sense of place. From native people shaped by these rivers to men who extracted riches from their silt.
- Gavin Newsom
Person
The shout. The shout of Eureka, Eureka. When the madness began, fortunes were made. Fortunes were lost. Time over and over again. Farmers work the soils nourished by those rivers. Settlements that turned into towns, towns that turned into thriving American port cities. Industries in our state flourished. The two world wars, a Great Depression, and social upheaval.
- Gavin Newsom
Person
Booms and busts. California endured. California thrived. And the rivers, they kept flowing. For 175 years, California has been a marvel of invention and reinvention, disaster and recovery. Grit and ingenuity. We found ways to build the future over and over. But today, that spirit is being tested.
- Gavin Newsom
Person
We face an assault on our values unlike anything I've seen in my lifetime. The federal government, respectfully, it's unrecognizable. Protecting the powerful at the expense of the vulnerable. Their credo seems to be about fear. Fear of the future, fear of the stranger, fear of change. In Washington, the President believes that might makes right.
- Gavin Newsom
Person
That the courts are simply speed bumps, not stop signs. That democracy is a nuisance to be circumvented. Secret police, businesses being raided, windows smashed, citizens detained, citizens shot. Masked men snatching people in broad daylight. People disappearing. Using American cities as training grounds for the United States military. Purposeful chaos emanating from 1600 Pennsylvania Avenue.
- Gavin Newsom
Person
Shifting a tax burden from the wealthy, from billionaires to small businesses, ranchers, farmers, and the middle class. Lining the pockets of the rich. Crony capitalism at unimaginable scale. State capitalism. Self dealing. Profit making, not policy making. Rolling back rights, rights of marginalized communities. Rewriting history. Censoring historical facts. Their politics, some politics of some twisted nostalgia about restoring the dynamics of a bygone era.
- Gavin Newsom
Person
None of this is normal, and it's important to remember it. Moments like this, the greatest tragedy is not, as King said, the clamor of bad people, but it's the appalling silence of so many good people. Not normal. But in California, we're not silent.
- Gavin Newsom
Person
You're not silent. You're not hunkering down. We're not retreating. We're a beacon. The state is providing a different narrative, an operational model, a policy blueprint for others to follow. The state, this people, this experiment in democracy belongs not to the past, but it belongs to the future. Expanding civil rights for all.
- Gavin Newsom
Person
Opening doors for more people to pursue their dreams. Dreams that are not exclusive, not to any one race, not to any one religion or class. Standing up. Standing up for traditional virtues, compassion, courage, and a commitment to something larger than our own self interest.
- Gavin Newsom
Person
And asserting that no one, particularly the President of the United States, stands above the law. We've gone to court. We've gone to court. We've gone to court to protect our people. Pushing back against this executive overreach. 52. 52 lawsuits have been filed, funded by you, by the way, in the special session that all of you led.
- Gavin Newsom
Person
And as a consequence, point of pride for our Attorney General. As a consequence, we preserved about $168 billion in illegally frozen federal resources that belong to our schools, that belong to our hospitals, that belong to our seniors. Resources that belong to all the people of this great state. We have one... We have one request for emergency relief.
- Gavin Newsom
Person
And we have affirmed the Constitution of the United States as the supreme law of the land. I say this with respect, but mindful. But, Mr. President, you can't cut off critical food assistance for millions of people. You can't send the military into American cities without justification.
- Gavin Newsom
Person
And you cannot cruelly and illegally cut off funding for medical research, homeland security, or disaster response. That is wrong. That is wrong. And you have all stood up. You have all stood up. Our Attorney General has stood up. Our Speaker has stood up. Our Pro Tem has stood up.
- Gavin Newsom
Person
All of you, on behalf of all people in our state. Proud of that. You should be proud of that. I'm not naive, you know. If we're going to keep the faith of the California spirit, we got to do more than just resist what is wrong. We got to keep building what's right. We're not defined.
- Gavin Newsom
Person
We all know this. We're not defined by what we're against. We're defined by what we're for. Opportunity and dignity and responsibility. The future. Every year, every year, the declinists... You know who you are. The pundits and critics suffering from California Derangement Syndrome. Look at this state to tear down. Try to tackle our progress.
- Gavin Newsom
Person
But we know the truth. California success is not by chance. It's by design. We've created the conditions where dreamers and doers and misfits and marvels with grit and ingenuity come to build the impossible. We became a destination for the world's first round draft choices.
- Gavin Newsom
Person
The best and the brightest who come here from all over the world for riches and new beginnings. And I'm not just talking about the tech CEOs and the founders in Silicon Valleys or the producers and writers in Hollywood. I'm talking about the mechanics in Modesto, the farm workers in Salinas, and the police officers in El Centro.
- Gavin Newsom
Person
That's what we do. First round draft choices. No state, simply no state in America that contributes more, none to the America greatness. No state builds more ladders to success or sees around more corners. The biggest manufacturing economy constructed here. The most productive agricultural economy grown here. 18%. 18%.
- Gavin Newsom
Person
18% of the world's R&D invested right here in California. One half of America's unicorn companies. Those companies valued over a billion dollars, a half are in the great state of California. And get this, the happiest cities right here in California. You know who you are. Fremont, San Jose, Irvine, San Francisco, and San Diego. Consistently the most happiest places on earth in your state. I think that matters. And it's interesting, isn't it? Those cities, they have so much in common, don't they? And that's proximity.
- Gavin Newsom
Person
The one thing they all have in common is proximity to the greatest research institutions in the world, the greatest system of public higher education anywhere in the world. This conveyor belt for talent. A proof point. You all know this, but I want to remind everybody. A proof point.
- Gavin Newsom
Person
Just last year, the UCs, they added an additional five Nobel laureates to its roster. One out of every three laureates here in California. Come on. It's almost too much. I was reading this. I don't see this on some of the cable networks. 13,000. 13,700 active patents in the UC system alone.
- Gavin Newsom
Person
That's more than any other system on the globe. We simply have no peers. And this, again, I said it earlier, it's not by chance, it's by design. You've created, you've nurtured these steps, big and small. They've emanated from these chambers. You have kept the state stable.
- Gavin Newsom
Person
You've kept it reliable because you've invested in the California dream. Just last year, just last year building that framework, we worked together to unveil the first concrete economic development blueprint in California's history. It wasn't top down, it's bottom up. It's region by region. Some 10,000 people, remarkable number, participate in the development of this plan.
- Gavin Newsom
Person
We call it Jobs First. 13 economic and workforce development plans aligned to the universities, aligned to our trade schools. It's a plan that reconciles the macroeconomic story of the world's fourth largest economy, four plus trillion dollars a year, with the microeconomic reality of 40 million people living here. It's an economic plan that's nourishing.
- Gavin Newsom
Person
It's an economic plan that's family supporting. For the Central San Joaquin, that means jobs and manufacturing and clean energy and, of course, agriculture. For the Redwood region, it's jobs in tourism and health and forestry and fisheries. For San Diego and Imperial Counties, new jobs in high tech, biotech, advanced manufacturing, and hospitality.
- Gavin Newsom
Person
For the Central coast, new jobs in aerospace, defense, semiconductors, quantum, and ag tech. We're doing all of this in conjunction, by the way, with our wildly successful CAEATFA PACE tax credit program that's helping businesses hire more Californians, expanding innovation all across our state. Proof points. Aerospace engineering in Torrance.
- Gavin Newsom
Person
Beneficial, beneficial. Hydrogen fusel manufacturing, Lancaster. Fusion R&D in San Leandro. And in Kern County, the first... This is interesting. In Kern County, Mojave, it's the first steel mill built, first steel mill built in California in half a century. That's interesting.
- Gavin Newsom
Person
By the way, and I'm going to get to the budget in a second, but this is a little bit of a preview. By the way, I'll be requesting all of you with your indulgence to in tomorrow's budget that we reauthorize... I'll be asking that you reauthorize our tax credit program for an additional five years. It is working. You know what else is working? You know what else is working?
- Gavin Newsom
Person
Speaking of tax credits, ever since that first moving image was taken of a horse, some of you may recall this, a horse named Sally in Palo Alto to the early silent film studios in Fremont, in Los Angeles, Hollywood has been one of California's... Well been perhaps the most California of industries. And that's why we're proud.
- Gavin Newsom
Person
We worked together last year to double down on our film and tax credit program to not only keep our iconic industry here, but all the unionized camera operators, stunt performers, wardrobe and set designers. It's a point of pride. And that program is working and producing real results because of your leadership.
- Gavin Newsom
Person
But as we support our proud past, we also need to make investments in our economic future. We're defining the next decade and beyond through robotics and fusion and space and quantum and artificial intelligence.
- Gavin Newsom
Person
And speaking of which, I understand it goes without saying that no technology holds more promise also more peril to jobs, our economy, our way of life than artificial intelligence. Bottom line is the tech genie is out of the bottle. The question is not whether change is happening. It is.
- Gavin Newsom
Person
The question is what values will guide us into this new frontier. And that's a question you're answering. That we are answering. Last year we worked together on landmark legislation to create the nation's first rules for responsible, ethical, and safe use of AI. Regulations that provide guardrails that balance risk and opportunity.
- Gavin Newsom
Person
This was a consensus effort and a template for the nation where you may have just seen just recently, New York State adopted our approach, your approach here in California, and made it their own. That's California leadership. We're leading the way in this space. It's how we're shaping the future. And it's a unique combination, isn't it?
- Gavin Newsom
Person
Of conscience and capital, entrepreneurial and innovative spirit that encourages risk taking but discourages recklessness. Policy that creates predictability so investors have confidence and innovators have space to dream and do. Compare this, compare that to this carnival of chaos on the national stage.
- Gavin Newsom
Person
All these mini dramas that we have to deal with hour by hour, this vapid day trading with real world consequences, no more striking than that Big Beautiful Bill. Want to remind everybody what it means to all of us here in California. That Big Beautiful Bill is putting 1.8 million Californians at risk of losing their health insurance.
- Gavin Newsom
Person
2 million facing premium increases. 2 million. Cuts in food aid poised to impact some 375,000 Californians. And for what? For what? All to benefit the top 10% of this country. People already own 2/3. Top 10%. 2/3 of the household wealth. Plutarch. Brown quoted Cincinnatus in his last speech. I'll quote Plutarch.
- Gavin Newsom
Person
Plutarch said the imbalance... Said this almost about 2000 years ago. He warned the Athenians. Imbalance, 2000 years ago. The imbalance between the rich and the poor is the oldest and most fatal ailment of all republics. Think about that, 2,000 years ago. Just not sustainable. It's not. Understanding the lessons of the past.
- Gavin Newsom
Person
California, all of us, we've marched the beat of a different drum. We built one of the most progressive tax systems in the nation. One that asked high income residents to pay a little bit more without punishing those that are making a little bit less. Think about this. And I hope folks over here think about this.
- Gavin Newsom
Person
There are 11 states in the United States of America that tax their middle wage earners more than the state of California. There are 16, 16 states in the United States of America that tax their low wage earners more than California taxes its high wage earners. So the question to all of you, who are the high tax states?
- Gavin Newsom
Person
Just consider Texas, just consider Florida, the two most regressive tax states in America. They're hammering their low income earners. They're hammering them more than their wealthiest. Who are the high tax states? California stands for fairness. And by the way, it's not just in our tax code and our tax policy, in more ways than one.
- Gavin Newsom
Person
And that's why I was proud, I was proud to work with all of you last year. Proud to work with the Legislature to raise the minimum wage for fast food workers in this state to $20 an hour. And also that's a point of pride.
- Gavin Newsom
Person
And how about those healthcare workers, the highest minimum wage in the United States of America, working with you at $25. But there's some of you probably thinking, oh well, that's just too bad. We should be like Alabama, maybe South Carolina, maybe like Tennessee. 20 states now across this country that keep their minimum wage at $7.25 an hour.
- Gavin Newsom
Person
Come on. Hasn't been raised in nearly two decades, the federal minimum wage. Try to pay rent, try to raise a family, try to pay for an education on $7.25 an hour. Comes down to simple question, doesn't it? Who do you stand for? Who do you stand for? You stand for the rich and the powerful, the most well connected?
- Gavin Newsom
Person
Or do you stand for bus drivers and janitors? Do you stand there with special education teachers that are working overtime to support and raise their families? Who do you stand for? Who do you represent reflected in our values? I mean it. We have to answer that question. The good news is you're answering that question.
- Gavin Newsom
Person
Point of pride. California way. I mentioned special education. Now let's talk about our educators. I'm proud to submit a budget, a little bit of budget speech now. I'm proud to submit a budget tomorrow that has the most significant investments in California's education history. That's a fact, that's happening tomorrow. But this may interest some folks, what I'm about to say. It will be a General Fund budget of $248.3 billion. But this is interesting. You may want to write this.
- Gavin Newsom
Person
Down. It includes revenues that are $42.3 billion higher than we forecasted. $42.3 billion higher. Why? Why? Because our economy is growing. Our population is growing. Why?
- Gavin Newsom
Person
Because of the energy and daring of entrepreneurs that are growing and dominating in the industries of the future as a result of that $42.3 billion windfall by the way, did not even include the December numbers which just came in. Almost $3 billion above projection. Interesting fact.
- Gavin Newsom
Person
Mindful as we should be of the radical nature of our state revenue and our long term structural challenges that we will discuss in detail tomorrow in the budget presentation. We're going to rebuild our reserves $7.3 billion. We're going to pay down long term pensions.
- Gavin Newsom
Person
And Those obligations over $11.8 billion will be met over the next few years, including $3 billion just in next year's budget. Speaking of obligations, want to broaden this. Some of the work that we've done together. It's the obligation that we have no greater obligation than to our kids. Back to the issue of education.
- Gavin Newsom
Person
That's why tomorrow's budget includes a record breaking $27,418 per student. We have never had per pupil investment as large as that in our state's history. It's also a budget we got to celebrate our wins. We forget about these things.
- Gavin Newsom
Person
It's also a budget that fully funds our brand new Grade TK for all and maintains our commitment at the same time to reduce class sizes. Fully funded. Also a budget that continues our nation leading investments. And I'm proud. My wife. Thank you for the recognition, Mr. Speaker. My wife. But I'm proud. But she hadn't done anything yet.
- Gavin Newsom
Person
Hold on. But I'm proud of her advocacy and your advocacy. Making sure we continue to lead the nation in our investment in school meals. Nearly 1 billion. This is amazing. It's nearly 1 billion breakfast, lunch and snacks each and every year. We're going to take that to the next level.
- Gavin Newsom
Person
And it's also this budget's going to advance the Mason's most expansive and audacious plans to eliminate ultra processed foods at the same time from our cafeteria. California is leading in that space. Now I say we're leading in that space. But you may have seen the space in that morning paper.
- Gavin Newsom
Person
You may have seen the space on cable networks where Donald Trump just announced a couple days ago that he will illegally be cutting all federal funding for TANF and childcare in curiously just five blue states in America, including California. Just think about that as a value proposition. I'm glad no one applauded that.
- Gavin Newsom
Person
How the hell can you applaud that? These are cuts are going to throw parents right in total disarray, forcing them to choose between going to work or taking care of their children. And it'll also be cuts that put at risk. Madam Pro 10 understands this.
- Gavin Newsom
Person
The most m significant expansions of child care in the United States of America that are happening right here in California. Here's the number. Our investments support close to half a million children. 487,000 children are supported through our healthcare expansions in this state. Saving families thousands and thousands of dollars a year.
- Gavin Newsom
Person
That is a point of pride and it's a point of privilege to acknowledge the leadership of the Women's Caucus, our new pro tem, and many of you for helping make that happen. It's also a point of contrast with the current Administration. Child care is economic development. I'm surprised not everybody is stepping up on that one.
- Gavin Newsom
Person
Maybe we all don't have families. I'm a dad. I appreciate child care. Look, when we talk about saving families money, let's consider the bold commitment we made just a few years ago as well. And that's to bolster after school and summer school programs.
- Gavin Newsom
Person
We bolstered them by providing nine hours a day of enrichment and 30 days of summer school each year. And I'm proud to say that this budget is going to finish the job to make that pledge universal at every elementary school in the state. We will complete that commitment this year. That's after school for all.
- Gavin Newsom
Person
We did it been promoted for years and years. Look, more hours of enrichment. More literacy coaches, more reading specialists. Healthy meals for all. An entire grade for everyone. But we understand it's not just any one of these initiatives on their own. It's also the complete transformation of our campuses through rigorous, relevant and engaging community schools.
- Gavin Newsom
Person
One of our most significant achievements over the last few years. I want to remind you this is important. To date, California's invested 4, $4.1 billion in these life changing, enriching community schools supporting over 2,500 campuses throughout the state. And the good news is we're not done.
- Gavin Newsom
Person
The budget that I will propose tomorrow includes an additional $1 billion to expand thousands of additional high need community schools in our state. These are, these investments are working. These investments are paying off.
- Gavin Newsom
Person
Just this year this may have gone lost in all the noise, but just this year we've seen improved academic achievement in every subject area, at every grade level, in every student group, with greater gains of test scores for black and Latino kids that happened. And that's happening in California's public educational system. And it's a point of pride.
- Gavin Newsom
Person
It's a point of pride that those gains are particularly pronounced in Los Angeles, the nation's second largest school district. I just want to say this to the teachers, the classified employees, and to the parents of LA Unified School Kids.
- Gavin Newsom
Person
You should be very proud of your project progress you're making, particularly proud of your leader who's here, the Superintendent of Public Education, Alberto Cavallo, who's here with us today, who's just been doing a remarkable job. Alberto, I appreciate it, you coming all the way up from Los Angeles.
- Gavin Newsom
Person
And just so you know, just so you know, he's only been here a few years, but under his stewardship, the district is outpacing statewide progress. They're exceeding pre pandemic levels in every category and reaching, get this, the highest levels recorded since the current state assessments were launched a decade ago under his leadership.
- Gavin Newsom
Person
That's happening in the nation's second largest school district. I say this all the time. You're nothing but a myriad of your consistent thoughts. Whatever you focus on, you'll find more of.
- Gavin Newsom
Person
And I don't think it's such a bad thing that we start focusing on what's right in terms of the investments made and the return on the investments that we're experiencing. And the superintendent, I assure you he's the first one to say and acknowledge that we have a lot more work to do with that.
- Gavin Newsom
Person
We also have some reforms that I think are long overdue. And I know not everyone may share enthusiasm for these reforms, but I think it's time to modernize the management of our educational system.
- Gavin Newsom
Person
So the budget I'll be submitting tomorrow proposes that we unify the policy making by the State Board of Education and the Department of Education, which I believe will allow the state Superintendent of Public Instruction to align our educational policies from early childhood through college much more efficiently. I believe that's important and long overdue reform.
- Gavin Newsom
Person
Speaking of long overdue, I thought we all made the right decision about getting rid of cell phones last year in public schools. I think everybody can agree on that. And if you don't agree, you're not a parent. Every parent understands this.
- Gavin Newsom
Person
Our kids are increasingly more anxious, more addicted, less free, less happy because so much of their lives is lived online. So much of their lives have become performative, right?
- Gavin Newsom
Person
Measured by external validation, likes and followers, we're watching the spiritual health of our young people erode, quite literally erode in real time the vital conversation about what to do that's played out here disproportionately in these chambers for well over the last decade. So I'm proud. I'm proud of all of you.
- Gavin Newsom
Person
I'm proud of California's leadership leading the nation in kids online safety, thanks to laws that you passed, including many that I had the privilege of signing just last year on agent verification, on chatbot safety, on parental controls.
- Gavin Newsom
Person
But recently you saw the headlines, may have reacted, some of you a little bit more than others, to some of those headlines in Australia, started making you think, are we doing enough? Can we do more? And so the consequences of getting it wrong, you all understand, is too apparent. Depression, social isolation, you know, some cases, marginal radicalization.
- Gavin Newsom
Person
If you think I'm overstating it. What's going on with our young men? What's going on with our boys? Not just online, but also offline. And forgive me for this, paint a tougher picture, but I thought it was important. You walk into a Morgue, you see five young people may have taken their life by suicide. Four are men.
- Gavin Newsom
Person
Boys are 14 more likely. 14 times more likely to be incarcerated. Boys three times more likely to die from an overdose. Twice as likely to be homeless. One out of seven men even have one friend. Half. This is interesting, may not be surprising to some of you.
- Gavin Newsom
Person
Half of young men have not even asked a woman out on a date in person. Men are struggling. Boys are struggling. The good news is we're responding. In this state, I was proud to recently issue an Executive order that, among other concrete actions, creates a new service challenge. We call it the men's service challenge.
- Gavin Newsom
Person
We're calling on 10,000 young men to step up as tutors and mentors and coaches and leaders in their communities. I think that's important. We need more young men. By the way, I saw my wife. She was kind enough to stand up.
- Gavin Newsom
Person
This is not an ad, but about 20 years ago, she did a landmark film about the misrepresentation of women and girls called misrepresentation. Oprah bought it. It was very well received. Two years later, she followed up with a documentary most folks forgot about called the Mask you live in 2015, about masculinity and the crisis of masculinity.
- Gavin Newsom
Person
Not in a toxic sense, not a pejorative sense, but what was happening with men and boys over a decade ago. This issue is a real issue and it is not a zero sum issue. This is not a zero sum issue. We'll continue nation leading efforts for women and girls, but we have to address this issue.
- Gavin Newsom
Person
And it's not again, just addressing the issue through service that's targeted at boys. It's also service that extends through our larger service Corps initiative in California. I think this is important. California Service Corps is now larger than than the Peace Corps. No other state can lay claim to that. We have Service matters. Shared experiences matter.
- Gavin Newsom
Person
You want to deal with all this crisis and all this stress. Shared experiences. No one's asking who you voted for. No one asks you where you live. Shared experiences. And we have a college Corps program in this state you have funded. Thank you. The college core program unlike anything else in the United States.
- Gavin Newsom
Person
Over 3,500 students are earning up to $10,000 to reduce their cost of education. And what we ask for in return is 450 hours of service. Service. I'm a Sar Shriver guy. Service, he said, is the heart and soul of what binds us together. Helping personal character, helping with friendships as well is helping with careers.
- Gavin Newsom
Person
And on the career front, I also want to highlight something that you funded. I want to highlight the progress you've made. I want to thank you for the commitment. We created the state's first master plan for career education. It was a three year process we just recently completed.
- Gavin Newsom
Person
It creates these seamless debt free pathways from school to high paying jobs with or without college experience. We're integrating new trainings, strengthening these regional partnerships and building a new career digital passport so people can track their skills. We set a goal of 500,000 apprenticeships by 2029. Today we have exceeded that goal.
- Gavin Newsom
Person
Over 600,000 earn and learn opportunities more than any other place in the country have been funded by all of you in this chambers. That is a big accomplishment. No other state can lay claim to that. Apprenticeships matter. These are folks in the skilled trades, right? These are the electricians and the laborers and the carpenters.
- Gavin Newsom
Person
And by the way, they're already at work strengthening and building the physical foundations of our state. Right now, right now in the state of California, we are building more infrastructure projects than at any other time in since Governor Pat Brown. That is a fact. It's a fact.
- Gavin Newsom
Person
By the way, we've got a website called build.ca.gov and you'll see when you go to that website, into your districts, into your community, you'll see the progress. $109 billion currently underway. More than 28,000 separate projects supporting over 200 plus thousand jobs to strengthen this state.
- Gavin Newsom
Person
Environmental restoration, energy projects, roads, bridges, water, power, rail, ports, broadband, which we're getting done for rural communities. Sites Reservoir, the first above ground water storage in half a century. As well as the world's largest battery and Solar Storage Project, 2300 plus megawatts in Fresno County.
- Gavin Newsom
Person
All moving forward, but also moving forward under California's new Fast Track Permitting Authority that you authorized two years ago. Getting it done and getting it done faster. I debated whether or not to include this in my comments, but I thought it was important. My gosh, how about mis- and dis-representation? How about mis- and disinformation?
- Gavin Newsom
Person
Pick up on permitting fast tracking. We're also laying tracks. Laying tracks. The nation's first high speed rail system. You want to do well in the future, you got to invest in the future. We want a 21st century transportation network. Full environmental clearance is done. We built over 50 major structures.
- Gavin Newsom
Person
More than 60 miles of guideway have been completed. Ready for immediate track lane in the Central Valley, 2,270 parcels in right of way have been procured. Full electrification. Ask the folks in the Bay Area, they understand this. Full electrification of 51 miles of tracks for Caltran, which is allowing people to move more quickly and more efficiently.
- Gavin Newsom
Person
We're connecting some of the fastest growing places in our state. And I'm proud of this. I'm proud of Fresno, I'm proud of Madera. I'm proud of Bakersfield. Those are communities we shouldn't be talking down to. Those are communities we shouldn't be talking past.
- Gavin Newsom
Person
This is one of the great economic investments in those regions of our state and will make commute times shorter and make life more affordable for the people of the Central Valley. And they deserve it, by the way. Affordability. It's not a word we just discovered, certainly not a hoax.
- Gavin Newsom
Person
So just briefly, here's the way we think about it. I think the way most of us think about it, it's not just one issue. It's a stacking of many, many issues on top of each other. But the one issue that impacts more things in more ways on more days. Pretty self evident cost of housing really.
- Gavin Newsom
Person
California's original sin. For decades. It's true. For decades and decades, the California housing reforms have been sort of notable for delay, often even denial. That said, you know, a few years back, we got to work. In 2019, we passed the strongest statewide renter protections in the United States of America. We did that together.
- Gavin Newsom
Person
In the past few years. In the past few years, we have enshrined the most constant consequential housing reforms in our state's history. Just last year alone. And you know, all you. I'd have to. I have to name check about 20 of you. Scott, Buffy among many, but I probably lead with those two.
- Gavin Newsom
Person
I was proud to sign 61 housing reform bills, clearing away regulatory thickets, forcing local governments often resistance to get in the game and modernizing our environmental review.
- Gavin Newsom
Person
But we obviously have more work to do and this year I hope we can work together Legislature to focus on the cost of construction, focusing on utilizing new building methods and new technology that are worker centered reforms that bring, that must bring our brothers and sisters in labor along with us. We have that opportunity this year.
- Gavin Newsom
Person
Build on that. There's another area that also requires our, I think urgent attention and that's the institutional investors that are snatching up homes by the hundreds and thousands at a time. These investors are crushing the dream of homeownership and forcing rents too damn high for everybody else. I just humbly submit.
- Gavin Newsom
Person
I think it's shameful that we allow private equity firms in Manhattan to become some of the biggest landlords here in our cities in California. It's time to tackle that issue and I look forward to working with all of you to address it.
- Gavin Newsom
Person
So in the next few weeks, I've heard from a number of you on this and I think there's some bills in this space. Look forward to working with the Legislature to combat this monopoly. You know, at the end of the day, it's just monopoly monopolistic behavior and strengthen accountability level the playing field for working families.
- Gavin Newsom
Person
And that's going to mean more oversight, enforcement and it potentially is going to mean changing some of our state tax code to make all of this work. Look, Malia liked the word tax. Housing is just one component. Housing is one component on this stack of affordability challenges that we face.
- Gavin Newsom
Person
And that's why our stack of solutions has included more than tripling the earned income tax credit in this state and providing some $7.6 billion back into the pockets of people.
- Gavin Newsom
Person
Since 2019, we've created the Young Child Tax Credit, the Foster Youth Tax Credit, new programs we created together and I'll remind you, we increased paid sick leave and paid family leave, allowing eligible workers. This is important. Just went in effect to receive up to 90% of their wages while they're raising and supporting their families.
- Gavin Newsom
Person
Few states in America are doing that. Through all of these, through all of these programs, through all of these targeted tax credits, these rebates and program expansions, the average California family now saves $18,000. Not insignificant, 18,000. But I also am mindful and recognize that the new cost of eggs is now your energy Bill.
- Gavin Newsom
Person
The number one driver by the way, number one driver of your increased energy bills over the last decade has been the cost of hardening our infrastructure and other wildfire related costs. Respectfully, significantly, not exclusively driven by climate change.
- Gavin Newsom
Person
That's why I was proud to work with all of you to extend our nation leading cap and invest program for another two decades. But when we did this, we were mindful of this crisis as it relates to utility bills and we provided in that extension close to $60 billion in rebates for your monthly energy bills.
- Gavin Newsom
Person
This Legislature did that. That is a meaningful accomplishment. To address the issue of affordability, we also worked across our differences finally, after years and years to come up with a new energy market, a regional energy market that will also increase reliability. At the same time it lowers energy bills.
- Gavin Newsom
Person
By the way, one of the things that that's not high, interestingly, unsurprisingly in California is our uninsured rate, 6.4%. It's among the nation's lowest. In addition to our healthcare expansion, no other state has done more in that space. We also subsidized some 370,000 people to help bring down the cost of their health insurance through covered California.
- Gavin Newsom
Person
But respectfully, it's not good enough just to subsidize health care costs. We need to lower them fundamentally. And we're doing just that, working together through our CALRX program. We launched our own generic drug label just last week. Just last week we released and launched an insulin pen at just $11. No other state can lay claim to that.
- Gavin Newsom
Person
It is now available to Californians, by the way. It's just like we did with naloxone last year and other life saving drugs. So it's in that spirit that we, you know, focused on reforms including in our mental health and homeless space.
- Gavin Newsom
Person
And I want to just acknowledge when I got here, we had no homeless plan, we had no housing plan, we had no mental health plan. There's no accountability. There was little investment, not a knock. It just wasn't the focus, the priority. Sacramento was the responsibility of cities and counties. I know this intimately as a former mayor.
- Gavin Newsom
Person
When I was mayor I never thought about calling Arnold Schwarzenegger and say what the hell are you doing on homelessness wasn't even in my consciousness responsibility exclusively as cities and counties. That has fundamentally changed. We crafted new statewide programs. Just think about this, don't forget about it.
- Gavin Newsom
Person
You funded home Key, you funded project Roomkey that together have taken quite literally Politifact this 72,000 people off the streets by converting hotels and motels and Other properties into long term housing. And by the way, we're seeing results. We're seeing results. Early data, early data just compiled. You may have seen this, we just released it.
- Gavin Newsom
Person
Early data shows, and this is the important number, unsheltered homeless, that the number of unstructured homeless in California dropped almost double digits, 9% last year. In 2025, it dropped in the state of California. First time in over a decade and a half that we can lay claim to that. LA down 10.3%. Riverside down 19%.
- Gavin Newsom
Person
Contra Costa County down 34.8%. And I'll remind folks, by the way, I'll remind folks, you think this is unique to California. Overall homelessness in the United States of America went up 18.13% last year. California 2025, unsheltered homeless, 9% reduction. First time in almost two decades. So the investments are paying off.
- Gavin Newsom
Person
And of course, of course it's not good enough, particularly for those living on the street, self medicating with drug and alcohol addictions, those suffering from bipolar disorder, schizophrenia, paranoia. But because of your leadership and new tools to address this issue, we've modernized California's landmark conservatorship laws for the first time in over half a century.
- Gavin Newsom
Person
You created Care Court, a new legal framework to connect people with untreated psychosis to court ordered services and housing. And the California voters, they did their part. They supported Proposition 1 with the passage in 2024. $6.38 billion.
- Gavin Newsom
Person
Here's a brief update for folks that just think this is all going to go away on its own and we don't have to make investments. In just 18 months since the voters approved that program, we've already approved 70% of the new treatment beds in slots that were promised under Prop 1.
- Gavin Newsom
Person
It's the fastest distribution of bond money in California's history. The fastest 4,000. Here's a numeric 4,236 new locked and unlocked mental health beds, 18,875 new outpatient beds. It's a big deal.
- Gavin Newsom
Person
And on July 1, in just a matter of months this year we'll implement the second phase of Proposition 1 by redirecting a billion dollars a year in annual mental health funding for housing and treatment for people living on the streets, providing counties what they've been asking for. A billion dollars. Predictable every year.
- Gavin Newsom
Person
So I say this with love and respect to the counties. No more excuses. It's time to bring people off the streets and out of encampments and into housing and treatment. No more excuses. You've done your job. Members of the Legislature. We have no more state. Vision is realized locally. Localism is determinative, just is. Period.
- Gavin Newsom
Person
That doesn't mean our hands are clean. No one's naive about that. And that's why just since 2021, the state has removed, with your support, some 19,000 encampments. And we've worked with providers all across the state to get over 61,000 people out of those encampments and in to services. We're seeing results.
- Gavin Newsom
Person
Making streets safer for everyone, recognizing, fully recognizing that quality of life is at the core of so much of the frustration people feel about our state. And when it comes to quality of life, when it comes to public safety specifically, let's talk about the facts.
- Gavin Newsom
Person
For the first time in California's history, you stepped up, did something we've never done in the past. You provided grants to police departments, prosecutors to combat organized crime, retail theft and hold criminals accountable. You provided $267 million to 55 local law enforcement agencies. We deployed crime suppression teams.
- Gavin Newsom
Person
We deployed them in Bakersfield, we deployed them in San Francisco. We deployed them in San Bernardino, in Oakland. And recently, because of the tragedy, the shooting in Stockton, we deployed them there. We're supporting local law enforcement.
- Gavin Newsom
Person
We're also supporting, with the help of the California Highway Patrol, a force that's been bolstered by the addition of 1,000 new officers. And here are the results. Here are the results. We have seen double digit decreases in crime overall in the state of California. Property crime. Property crime down. Aggravated assault down. Car theft down. Burglary down.
- Gavin Newsom
Person
Robbery down. Violent crime down. California cities are seeing record low homicide rates. Oakland, the lowest homicide rates since 1967. Louisiana, the lowest since 1966. My old town, San Francisco. They're going to have to update their talking points, aren't they? My old town, San Francisco, the lowest homicide rate since 1954. 1954 again. We got more work to do.
- Gavin Newsom
Person
But to those with that California derangement syndrome, I'll repeat, it's time to update your talking points. You guys have been working hard at this. No one's walked away from public safety. You guys have been leaning into public safety. We didn't turn a blind eye to this. We invested in it. We did the hard work.
- Gavin Newsom
Person
We didn't sit by and moralize it. We didn't talk about it. We leaned in. You leaned in. And you're producing real results all throughout the state of California. Proud of that. California remains the most blessed and often cursed place on earth. Profound natural beauty, prosperity. Profound natural Disasters. Testing our spirit, testing our resources.
- Gavin Newsom
Person
Just want to close with two things here. I was down in Belem in Brazil at COP30 recently. It was a climate conference, by the way. The US Nowhere to be found. We were a footnote. The United States was a footnote. China, close to 800 delegates. United States, not one. Not even a note taker.
- Gavin Newsom
Person
I want to remind everybody, China today manufactures industrial policy, manufactures 70% of the world's electric vehicles. They're flooding the global market with increasingly high quality and inexpensive cars. And I just want to say this clearly so it explains a little bit about our rationale. This is not about green power. This is about economic power.
- Gavin Newsom
Person
They are dominating the space. They're locking in markets, they're locking in supply chains, they're locking their influence all across the globe. They're cleaning our clock. But in California, we're not bystanders. We've already seen seven times more clean energy jobs than fossil fuel jobs in the state of California.
- Gavin Newsom
Person
And last year alone, the fourth largest economy in the world, using 100% clean energy, fourth largest economy in the world was run on 100% clean energy for at least a part of nine out of ten days. Think about that. It's unprecedented. Unprecedented. Almost nine out of ten days. Two thirds.
- Gavin Newsom
Person
Today, two thirds of our energy comes from clean sources. Solar, hydro comes from wind and geothermal comes from nuclear power. And just last year, finally California finally ended its use of any coal fired power. None. We're in the how business. We're proud to be in the how business.
- Gavin Newsom
Person
And we understand something that increasingly people are starting to understand. At least people that are open to argument, interested in evidence that climate risk is financial risk, that climate risk is becoming uninsurable. That's why in California we're making our homes and communities more resilient, more resilient to heat and fire. That's why we're working with our insurance commissioner.
- Gavin Newsom
Person
A lot of work to do here. Talk about grace. Working with our insurance commissioner to protect homeowners from unpredictable rate increases and cancellations became the first state we. You together, we became the first state in the country to require insurers to lower insurance for homeowners hardening upgrades. That is not the case in any other state.
- Gavin Newsom
Person
And in the last few months, the last few months, this is important. In the last few months, six insurance companies announced their commitment to remain in or expand coverage here in California. Again, a lot more work to do. That was important. It was an important milestone. You saw it.
- Gavin Newsom
Person
Farmers and Mercury and some of the AAA affiliates important Milestone, more work to do fully implement the commitments we laid out in the sustainable insurance strategy and more work to do to hold insurance companies accountable for meeting their obligation to insure in high risk areas throughout the state of California. I want to end with this.
- Gavin Newsom
Person
I was down in LA yesterday, got back last night and those insurance stories they self evidently, unsurprisingly were front and center with those survivors that I met. And let me remind everybody, I think it's important I remind everybody where we what happened a year ago put it in perspective.
- Gavin Newsom
Person
Between January 7th and January 22nd, 48,000 acres burned the size of three Manhattans, three communities torn asunder. Palisades, Altadena, Malibu, Pasadena. Fires took the lives of 31 people. 31 destroyed 16,000 structures.
- Gavin Newsom
Person
On the sober anniversary it's not only right that we honor the lives lost but we also honor the lives of some of the remarkable heroes and leaders, the first responders and firefighters that faced unimaginable conditions.
- Gavin Newsom
Person
Some of you were there, you saw it, 16,000 at peak, 16,000 personnel working in the arena, the theater fires, 16 plus large scale fires. Remarkable was a firestorm, I'll remind you, in the middle, the middle of winter, hurricane force winds attached to a fire.
- Gavin Newsom
Person
What they did, I don't need to say it, you just demonstrated was miraculous, it was heroic. They battled these impossible conditions in the wind and in the dark, flying dangerous night missions over the firestorm.
- Gavin Newsom
Person
Cal fire as you saw a moment ago is in the audience but you know who else was up there and thank you for plotting with the community groups and the business owners and most importantly can you just stand up And I'd ask you all to stand up again.
- Gavin Newsom
Person
The survivors of the Eaton and Palisades fires, would you all just stand up and thank you for your courage, thank you for your resiliency, thank you for your strength.
- Unidentified Speaker
Person
We haven't forgotten about you, we won't forget about you said we had your back and we mean it. Thank you, thank you.
- Gavin Newsom
Person
It's always difficult sometimes to talk about this because we were in roundtables Jen, Members of my Administration yesterday talking to survivors and it's called comfort when you say we have the fastest debris removal and US history which is true fact we provided mortgage relief, we provided, you provided two and a half billion dollars of grants and funding.
- Gavin Newsom
Person
I've signed 27 Executive orders, you've passed dozens and dozens of bills to reduce and remove, reduce time, reduce red tape to allow survivors to rebuild much more quickly. And it is true at this time 14,000 structures in the Paradise Fire. There are only 385 permits, 16,000 structures with over 2500 permits in L. A.
- Gavin Newsom
Person
But it doesn't mean anything if you're not one of the beneficiaries of that. And so we recognize that it's not good enough and it's not nearly good enough. And that's why we need to do more to turbocharge the efforts to rebuild these communities.
- Gavin Newsom
Person
And that's why I'll be asking you, and it's in the budget we'll provide tomorrow to focus on a new rebuilding Fund that will help close the gap. This is the biggest challenge, close the gap between insurance payouts and the cost of rebuilding. This will help get survivors back in their homes much, much faster. But I'd be remiss.
- Gavin Newsom
Person
I'd be, remember, contrast these efforts with the President United States, been a year. Contrast these efforts to Donald Trump's his complete failure to act. He's even refusing to send a disaster recovery request to Congress of $33.9 billion. By the way, that request supported by every Member of the California delegation, every Democrat, every Republican.
- Gavin Newsom
Person
We lost someone I thought was a wonderful human being, Doug Lamoffel. I was engaging with him on water policy. Just last week, Doug had our back. Doug was there in the first round. Doug met with us. Doug said, we don't play politics with this.
- Gavin Newsom
Person
It's time for the President of the United States to act like the President of the United States. All the United States of America to fulfill his promises that he made to deliver for the people of Los Angeles.
- Gavin Newsom
Person
It's time for the President of the United States to do his job, not turn his back on Americans that happen to live in the great state of California. He was there. We were there for you in paradise.
- Unidentified Speaker
Person
The United States of America. The United States of America.
- Gavin Newsom
Person
No doubt these are challenging times. It's not just because of the fires, just because get to the federalization of the National Guard or the assault on our democratic norms and institutions. And yet I think it was one of our finest. Because hardship doesn't merely wound us, it reveals us.
- Gavin Newsom
Person
The story of California has never been a story of ease. It's a story of effort, strengthened by trial and enlarged by the people who refuse to give up on one another. We built something that is not perfect, not finished, but it's real, always moving forward. Like the rivers that define our landscape, our people themselves are unstoppable.
- Gavin Newsom
Person
We're home to more Americans than any other state. Culture, food, music, AI, biotech, Quantum Computing, agriculture, all. All happens here. First, we don't run from change, we drive it. And we're proving that inclusive democracy works. We're proving that expanding human rights works. We're proving that legal immigration works. And we're proving that a progressive tax structure works.
- Gavin Newsom
Person
California's never been about perfection. We're about persistence, the courage of our convictions and the strength to embody them. That's the California way, and it lights the path for the rest of the world. The work we do, the work you do, building a California where every person can see themselves is never ending.
- Gavin Newsom
Person
And so we continue on, because years from now, we can tell our children we did not settle for the world as it was. We can say with pride, we built something worthy of them. We built the future. Thank you all very, very much. Thank you to this Legislature for your remarkable leadership. Thank.
- Josh Lowenthal
Legislator
We thank you. Governor Newsom. Without objection, the governor's State of State address shall be printed in the Journal as a special appendix. Separate appendix. The joint convention is adjourned. Sinai die Members and guests, please remain in place while we allow the Governor to depart the chamber. Okay, this will just be a moment, everyone.
- Josh Lowenthal
Legislator
We are back in regular session. Moving on to announcements, I'm ordering the Assembly desk to be held open for the introduction of the budget Bill. Session schedule is as follows. Friday, January 9th. No floor session, no check in session.
- Josh Lowenthal
Legislator
Monday, January 12th, floor session at 1pm Seeing and hearing no further business, I'm ready to entertain a motion to adjourn. Majority Leader Aguilar-Curry moves, and Ms. Sanchez seconds that this House stands adjourned. So Monday, January 12th, at 1:00pm the quorum call is lifted and we are adjourned.
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