California needs to build a lot more housing. But to do that, it’s going to need a lot of money.
Proposition 1 would enable the state to borrow $11.25 billion for housing, but where exactly would the money go if it passes?
As CalMatters’ Marisa Kendall explains, Prop. 1 would fund housing for veterans, homeless Californians, renters, homeowners, farmworkers, students and tribes.
Most of the money, $7.2 billion, would be earmarked for buying, building or renovating apartment buildings. Projects would have to reserve a certain number of units for low-income households.
Some housing would be set aside for homeless housing that includes additional services, known as “supportive housing.” This, in combination with other funding sources, would help support up to 40,000 rental units, according to the nonpartisan Legislative Analyst’s Office.
The office also estimates that Prop. 1 would cost the state up to $600 million a year for about 25 years to pay off the bond, including interest.
Proponents say that while it’s no silver bullet for the state’s housing crisis, it would help get some existing projects past the finish line.
Nearly 40,000 affordable units throughout California have been designed, permitted and partially funded — but are stalled because developers can’t get enough money to build them, according to a recent report. Projects for homeless and low-income residents also need large subsidies since their tenants don’t pay enough in rent to offset building costs.
Some Republican lawmakers opposed the bill that placed the proposal on the ballot. Sen. Tony Strickland of Huntington Beach said the measure borrows “money against the future,” and that it would be risky to push the state deeper into debt.
- Strickland, during a Senate floor vote in June: “There’s really no reason … other than to put hardworking families and the California taxpayers more in debt moving forward in perpetuity.”
Join CalMatters, AAJA Sac, ABC 10 and The Sacramento Observer for a free VotingMatters event on Oct. 21 in Sacramento. The event enables attendees to learn and discuss the upcoming election and focuses on the ballot propositions and insurance commissioner race. Register here to attend in person.
Other Stories You Should Know
CA’s 100th lawsuit against Trump 2.0
From CalMatters’ Nigel Duara:
California Attorney General Rob Bonta on Thursday filed the state’s 100th lawsuit against the federal government since President Donald Trump took office for a second time in 2025.
Bonta reached that milestone in 21 months. During the first Trump administration, California officials sued the federal government a total of 123 times in four years.
The lawsuit, filed in the U.S. District Court for the Central District of California, alleges that U.S. Immigration and Customs Enforcement overstepped its Constitutional limits by taking people into custody at state courthouses, a practice forbidden by a federal judge that ICE nevertheless continues to employ.
The California Justice Department found ICE detained 34 people at state courthouses in June 2026. In July 2026, the month after the judicial order to stop making arrests at courthouses, ICE detained 28 people at courthouses.
- California Justice Department, in a statement: “ICE’s directive on courthouse enforcement and the resulting enforcement activities have had a profound chilling effect that has hindered California’s ability to enforce the law and protect public safety.”
More Trump lawsuits: In an extraordinary intervention leading up to the election, the Trump administration is suing California and Los Angeles County to try to force elections officials not to count potentially 20,000 registered voters’ ballots as it continues to look for evidence of noncitizens voting. Read more from CalMatters’ Jeanne Kuang and Ana B. Ibarra.
Outside groups pour big bucks into legislative races
Powerful outside groups are pouring millions of dollars into competitive California legislative races this year to try and sway voters and ultimately shape the next Legislature, writes Calmatters’ Kate Wolffe.
Political action committees backed by cryptocurrency billionaires, tech companies and unions have spent almost $100 million on races so far this election cycle. These groups are not directly affiliated with the campaigns, and unlike direct contributions to candidates, there is no limit on how much these committees can spend.
Two new tech-backed groups have dominated spending in legislative races: Grow California, funded by a cryptocurrency investor and a venture capitalist, spent $17.5 million this cycle. California Leads, funded by Meta and Google, spent close to $14 million this year.
A CalMatters analysis found that since the June primary, tech PACs are driving up spending to elect more moderate candidates in four races — three of which are in solidly blue districts and the other in a purple district.
And lastly: CA’s aging fishermen
San Diego was once the tuna capital of the world, but only about 130 commercial fishermen remain in the county. An aging workforce, low pay and limited ways into the industry are making it difficult to attract newcomers. CalMatters’ Deborah Brennan and video strategy director Robert Meeks have a video segment on California’s shrinking fishing industry as part of our partnership with PBS SoCal. Watch it here.
SoCalMatters airs at 5:58 p.m. Fridays on PBS SoCal.
California Voices
CalMatters columnist Dan Walters: California passed two laws this session related to the state’s long-running “tort wars” — which pits personal injury lawyers and their allies against business interests and their insurers — and tort warriors are gearing up for the next round.
When a company lets a computer system arbitrate rental decisions, it can deny families access to housing and reinforce racial barriers with no accountability, writes Dillon Forst, a logistics coordinator who is studying at California State University, San Marcos.
Other things worth your time:
Not one single court has approved of the DOJ’s plans to obtain state voter rolls // The Atlantic (gift link)
CA falls short on investigating Medi-Cal fraud, state report says // CalMatters (free)
CA’s ‘No Vigilantes Act’ requiring ID from immigration agents blocked by 9th Circuit // Los Angeles Times (paywall)
Inside the West Coast’s largest immigration court, chaos spreads and removal orders soar // The San Francisco Standard (paywall)
How one of CA’s poorest areas became its toughest political battleground // The Guardian (free)
How much have CA schools spent in Prop. 28 arts funds? We now have an answer // EdSource (free)
CA orders lenders to report on their handling of insurance payouts to LA fire survivors // AP News (free)
Jackie the bald eagle died from ‘multiple severe’ illnesses, wildlife officials say // LAist (free)
