Ringside: Conditions President Trump Can Put on California’s Federal Relief Funds

What can President Donald Trump do to pressure Governor Gavin Newsom and the California Legislature to manage the state’s water projects in a way that doesn’t simply offset the federal efforts? What leverage does he have, if for every federal regulation that is relaxed, its equivalent in California is further tightened?

As it turns out, there’s a lot Trump can do. Here, to continue our exploration of reforms and repeals that might bring abundance and affordability back to California, is a plan to tie disaster relief funds to specific actions by the state government and state agencies. This plan comes from an attorney with extensive experience with California’s crippling regulations and anti-growth litigation.

CONDITIONS TRUMP CAN ATTACH TO RELIEF FUNDS

Required to obtain first tranche of Congressionally-authorized funding for fire recovery:

• California waives CEQA/CESA & Fish & Game Code/Water Code to deliver full water allocation from Delta.

• California suspends enforcement of all state greenhouse gas reduction measures that increase housing, electricity or fuel prices; California prohibited from counting as GHG emission reductions the departure of people or jobs or industries to other states and countries; California required to include GHG emissions from fires and estimated GHG emissions from goods imported to and consumed in California, and submit to Feds a cost-benefit analysis including disparate cost burdens by household income, before accessing any federal funding – note this could be part of the Inflation Reduction Act clawback conditions also given state law DEI mandates embedded in California’s IRA projects.

Required to obtain second tranche of funding:

• Report confirming that debris/hazmat clearance done within two months.

• Report confirming that construction and building permits are being issued within one week (on average) after applications submitted by a licensed construction professional (architect, engineer, or similar attesting that application complies with all applicable objective legal standards).

• Report confirming that 50% of required infrastructure is completed.

• Report confirming what laws/regs have been waived to reduce the cost of constructing new housing to produce housing available for sale at 3x household median income, and rental housing at 4x median household income (by County).

• If any deadline missed, second tranche of funding limited to 20% until additional Feds approve additional state/local law/reg waivers or revocations have been implemented to achieve deadlines – monthly reports required thereafter to Feds to demonstrate compliance and second tranche funding metered out with satisfactory monthly progress reports approved by Feds.

Required to obtain third (final) tranche of funding:

• Report confirming 50% of structures are built or under construction.

• Report confirming that 90% of infrastructure is built or under construction.

• Report confirming housing production costs have been reduced, and cap tax credits for affordable housing to $350k/unit [national average to produce an affordable housing apartment unit] until such time as these housing production reforms have resulted in these 3x (for sale) and 4x (rental) outcomes.

• If any deadline missed, third (final) tranche of funding limited to 20% until additional Feds approve additional state/local law/reg waivers or revocations have been implemented to achieve deadlines – monthly reports required thereafter to Feds to demonstrate compliance and third tranche funding metered out with satisfactory monthly progress reports approved by Feds.

This plan that will raise eyebrows. And Trump could do it.

For California’s special interests who have fattened themselves for decades by building subsidized projects, because the state’s excessive regulations drove the unsubsidized private sector into full withdrawal, Trump’s election is a nightmare. For businesspeople who just want a chance to be able to be competitive again, and for the millions of households that just want to increase their solvency, Trump’s election is an opportunity.

Everything has its time. It’s not wrong to let the political pendulum swing back again after having gone so far one way, nor is it futile to try to direct its new momentum.