Capitol Update - July 3, 2026
Capitol Update Week of June 26 – July 3, 20263
Governor Newsom signed the 2026–27 budget and the $11.25 billion Veterans and Affordable Housing Bond Act in the same week, creating the most significant state construction pipeline event of the year. At the federal level, the U.S. chose not to extend USMCA on July 1, pushing Canadian softwood lumber — already carrying a 45% combined duty — into further uncertainty. May housing starts fell 15.4% to a pandemic-era low, with the West posting the steepest regional decline.