California leaders announce historic Veterans and Affordable Housing Bond Act of 2026 to expand homeownership and build affordable housing for generations of Californians

What you need to know: The Governor, Senate and Assembly today agreed to place a historic, $11.25 billion housing affordability bond on the November 2026 ballot. The bond would make long-term investments in affordable housing and homeownership, accelerating housing production while creating lasting housing opportunities for Californians.

SACRAMENTO - Governor Newsom, the Assembly, and the Senate announced today a three-party agreement to place before California voters a proposed affordable housing and homeownership bond that would fund housing construction, preserve affordable housing, and expand homeownership opportunities.

The Veterans and Affordable Housing Bond Act of 2026 is a historic, $11.25 billion investment that will fast-track the construction, rehabilitation, and preservation of affordable housing, support homeownership programs, and provide funding for a variety of state housing initiatives.

Upon passage by the Legislature and signature by the Governor in the coming days, the Act will be placed on the November 2026 ballot.

"Today's agreement builds on our work with the Legislature to expand opportunity and make homeownership and affordable housing more attainable for Californians. For far too long, our state failed to build enough housing to meet the needs of growing families and communities. We're once again turning the page on decades of inaction and making bold investments needed to tackle one of our state's greatest challenges. California's future depends on whether people can afford to put down roots, raise a family, and build a life here. Through this historic bond, we're giving voters the opportunity to help more Californians achieve homeownership, expand access to affordable housing, and give more families a real shot at the California Dream."

Governor Gavin Newsom

Why this historic investment is needed now

Californians continue to cite housing affordability as their number 1 priority.

Only 17% of California households can afford to purchase a median-priced single-family home, while more than half of renters are "rent burdened," spending more than 30% of their income on housing. As the largest recurring expense for most Californians, housing costs play a central role in overall affordability.

Today's proposal follows a series of housing regulatory reforms enacted in recent years to facilitate housing development - including sweeping CEQA exemptions enacted last year to boost housing production and infrastructure statewide.

The proposed Veterans and Affordable Housing Bond Act of 2026 would provide funding for affordable housing and homeownership programs, including assistance for veterans, middle- and lower-income households, affordable rental housing, and interim and supportive housing for people experiencing homelessness. The proposal also includes funding to support veterans' homeownership, affordable rental housing, homeownership assistance, farmworker housing, housing and infrastructure for tribal communities, student housing, and other state housing programs.

"California has been building toward this moment. We've cut red tape, fast-tracked construction, protected renters. And now, we're going bigger: $11.25 billion for affordable housing to expand homeownership for veterans and working families, drive down costs and prove that the door to opportunity is open to everyone. This is California delivering." Speaker of the Assembly Robert Rivas

"The agreement reached today is the reflection of the hard work done in the Legislature to address and respond to the critical housing needs that Californians are facing across the state. The Legislature continues to prioritize access to housing in the Golden State for everyone. Thank you to leaders in both the Senate and Assembly, as well as Speaker Rivas and Governor Newsom, for working together to deliver billions of dollars to support needed housing." Senate President pro Tempore Monique Limón

What the bond will do

The bond is expected to help more than 40,000 Californians purchase a home by providing down payment assistance, affordable mortgage financing, and other homeownership support. These investments will help veterans, first-time and lower- to moderate-income homebuyers overcome the upfront costs of purchasing a home and make homeownership more attainable.

It will also support the creation or preservation of tens of thousands of affordable homes for lower-income Californians, including seniors, farmworkers, veterans, and people experiencing or at risk of homelessness. Because these homes must remain affordable for at least 55 years, the bond represents a long-term investment that will expand housing opportunities and strengthen California communities for generations to come.

The bond will also support tens of thousands of high-paying construction jobs as new housing is built across California.

It is also designed to maximize taxpayer dollars by leveraging significant outside investment: for every $1 invested by the state, an estimated $4 in federal tax credits, local funding, private financing, and resident rents will help finance these developments, allowing California to build substantially more housing than state dollars alone could support.

"We all know the stats in California-two-thirds of lower-income renters are rent-burdened, 170,000 people are unsheltered, and we are 1.2 million units short of the affordable housing we need. But what gets lost when we're counting housing units and debating dollars and cents is that we're really talking about families who need a roof over their heads. Time and time again, we say that housing affordability and homelessness are top priorities, so it's incumbent on us to put our money where our mouth is and invest in housing programs that have proven their ability to deliver real results. What we can't afford is to wait." Assemblymember Buffy Wicks (D-Oakland)

"With one vote, California will build tens of thousands of new homes, prevent existing affordable housing from disappearing, and help Californians who need a hand to buy a home or partner with organizations like Habitat for Humanity. The legislation builds rooftops for homeless and foster youth, students, and farmworkers, and supports our veterans with the largest-ever investment in the CalVet home loan program." Senator Christopher Cabaldon (D-Yolo)

About the Veterans and Affordable Housing Bond Act

The Veterans and Affordable Housing Bond Act of 2026 (Senate Bill 417) includes:

• $1.25 billion in self-supporting revenue bonds for the CalVet Home Loan Program, expected to help veterans and military families achieve homeownership. These bonds are repaid entirely through mortgage payments and do not rely on taxpayer funding.
• $10 billion in voter-approved general obligation bonds to finance the construction, rehabilitation, acquisition and preservation of affordable housing for lower-income Californians.
• Investments in the Multifamily Housing Program, the state's flagship affordable housing program.
• Targeted investments to expand affordable housing and homeownership opportunities for Californians with the greatest housing needs, including farmworkers, tribal communities, college students, homeless and at-risk youth, lower-income households and moderate-income first-time homebuyers
• Tens of thousands of high-paying construction jobs.