| | | | |  | | By Dustin Gardiner and Tyler Katzenberger | Presented by Phenomena Global | | 
Rep. Robert Garcia and other YIMBY-aligned lawmakers will launch a new caucus today to advocate for more pro-housing policies in Congress. | Damian Dovarganes/AP | THE BUZZ: IF YOU BUILD IT — House members aligned with the YIMBY — or Yes in My Backyard — movement are launching a first-of-its-kind, bipartisan caucus to help advance their case that America’s housing shortage is largely due to local regulations that make it too difficult to build new homes. Led by California Democrat Rep. Robert Garcia, the YIMBY Caucus is set to launch today with 25 members who agree on one key concept: that the solution to America’s affordable housing problem is to accelerate production. It’s another sign of how the California-born movement, which was started a decade ago by San Francisco activists angry over the city’s astronomical cost of rent, has gained national attention and spread to other states with major housing shortages of their own, including Colorado, North Carolina, Arizona, New York and Hawaii. The new caucus will also be co-chaired by Reps. Lori Chavez-DeRemer (R-Oregon), Jake Auchincloss (D-Mass.), Juan Ciscomani (R-Ariz.), Rep. Scott Peters (D-Calif.), Rep. Chuck Edwards (R-N.C.), Rep. Brittany Pettersen (D-Colo.) and Rep. Marc Molinaro (R-N.Y.). Garcia, the former mayor of Long Beach, chatted with Playbook about his vision for the new caucus, and how he hopes it can make progress given President-elect Donald Trump attacked YIMBY policies on the campaign trail. Highlights from the interview: Playbook: Why launch the caucus now, why is this the right moment? Garcia: Well, the single biggest challenge we face in California and in the country is housing. There's no bigger issue for us back home and we are in a housing crisis. We've got to build 3-4 million minimum additional homes across the country to meet our needs.
|  Democratic Rep. Robert Garcia. | Francis Chung/POLITICO via AP Images | Playbook: There are a number of Republicans among the founding members of the caucus. Where do you think Democrats and Republicans can find common ground on housing from an ideological standpoint? Garcia: Obviously, we have different ideas about policy and some bigger debates. But, in this caucus, we all agree that there is a housing crisis. We also agree that, oftentimes, housing policy is overregulated. And I think both sides understand that. For us, as Democrats or progressives, we understand that being a YIMBY is about jobs, growth. It’s also about deregulation. A lot of Republicans would say the same thing. Playbook: Many of these land-use decisions have traditionally been left to local governments. What is the role for Congress, and what can Washington do to get more cities moving on housing construction? Garcia: Congress has a role when, especially when states are failing to actually build environments where housing can get developed. There’s a lot of things: One, there’s zoning and regulation that we’ve got to engage in. Two, it’s tax incentives. There's a lot of conversation, about tax incentives for developers and for homebuilders, around commercial development. The caucus can also be used to really push cities and states to adopt more pro-housing policies. Playbook: Kamala Harris ran with ideas from the pro-housing movement as part of her platform. Donald Trump was on the other side of that, calling some of the YIMBY policies a “war on America’s suburbs.” How could YIMBYs deal with a president who apparently isn’t very friendly to their ideas? Garcia: We shouldn’t forget Donald Trump was a developer. There’s few people that disagree with Trump more on his proposals than me. But, at the end of the day, we need more homes. A lot of Republicans are pro-housing. We need to build housing in this country, and that doesn't matter who the president is. This is a moral imperative. It’s impacting our homelessness crisis in the state. People’s rents are way too high. Playbook: It sounds like part of what you’re saying is that, in practice, you don’t think Trump is going to stand by that “war on the suburbs” rhetoric, that he might be more pro-development in practice. Is that fair? Garcia: I would hope so. At the end of the day, everyone in the caucus isn't going to agree on everything. But there are some shared principles here. We do believe that house construction development is overregulated. We do believe in [being] pro-growth on housing, all types of housing. There's some shared bipartisan agreement, and now is the moment to capitalize on that. GOOD MORNING. Happy Thursday. Thanks for waking up with Playbook. You can text us at 916-562-0685 — save it as “CA Playbook” in your contacts. Or drop us a line at dgardiner@politico.com and tkatzenberger@politico.com, or on X — @DustinGardiner and @TylerKatzen. WHERE’S GAVIN? In Fresno for an afternoon news conference on jobs and the economy.
| | A message from Phenomena Global: Fear not—the Cavalry is here, and it’s led by Artists. At Phenomena Global, we ignite movement-making culture by channeling capital into creativity, harnessing the power of entertainment to shape hearts and minds. We bring together cultural icons, media powerhouses and top financiers to design strategies that break norms—delivering not just positive returns, but inspiring purpose-driven impact. This is the rise of Cultural Capitalism for Good. Join the movement. | | | |  | STATE CAPITOL | | | 
Gov. Gavin Newsom. | Eric Thayer/AP | (ALMOST) OUT OF THE RED — The last thing that Gov. Gavin Newsom and Democratic lawmakers need as they prepare to go toe-to-toe with a second Trump administration is another year of bruising headlines about a massive budget state budget deficit. Lucky for them, an early estimate suggests the outlook might not be so bad. An estimate released Wednesday by the Legislative Analyst’s Office suggests the state will have a $2 billion budget deficit in the next fiscal year. That’s a relatively small delta after a roughly $47 billion deficit this past year. Newsom, who is sensitive to negative budget headlines, has historically been eager to get ahead of deficits. So don’t be surprised if the governor, whose initial budget comes out in January, wants lawmakers to erase any red ink sooner than later. POLITICO Pro subscribers can read more on the LAO’s report here and on the economic conditions underlying it here, all from our colleague and resident budget guru Blake Jones.
| | | | Want to know what's really happening with Congress's make-or-break spending fights? Get daily insider analysis of Hill negotiations, funding deadlines, and breaking developments—free in your inbox with Inside Congress. Subscribe now. | | | | | | | SILICON VALLEYLAND | | | | 
Democratic Rep. Ro Khanna. | Alex Brandon/AP Photo | PLEADING WITH MUSK — Silicon Valley may have voted en masse for Vice President Kamala Harris, but Democratic support there did decline, just as it did in many other parts of the country. Rep. Ro Khanna has big ideas for how Democrats can stop the bleeding. Our colleague Steven Overly, host of the POLITICO Tech podcast, called up Khanna to talk about his strategy to win back voters — both in Silicon Valley and in America’s heartland — which he says will require Democrats to embrace tech as a force for rebuilding the economy. Plus, Khanna weighs in on Elon Musk’s plans to cut government spending under the incoming Trump administration. Hint: Khanna wants Musk to work with government, not fight it. Listen to the full interview here.
| | | | A message from Phenomena Global:   | | | | | ELECTION RESULTS | | |  AIDS Healthcare Foundation President Michael Weinstein. | Jenna Schoenefeld/AP Content Services for AIDS Healthcare Foundation | WEINSTEIN’S NIGHTMARE — So long, rent control measures: California voters have officially approved Proposition 34, a ballot measure designed to kneecap the political spending of AIDS Healthcare Foundation President Michael Weinstein, our own Will McCarthy reports. The measure was backed by tens of millions of dollars from the California Apartment Association and other real-estate interests looking to block Weinstein from putting future rent control measures on the ballot.
| | | | Policy Change is Coming: Be prepared, be proactive, be a Pro. POLITICO Pro’s platform has 200,000+ energy regulatory documents from California, New York, and FERC. Leverage our Legislative and Regulatory trackers for comprehensive policy tracking across all industries. Learn more. | | | | | | | CLIMATE AND ENERGY | | BAD BLOOD — A vote over a transportation fuels program with a high price tag earlier this month is reverberating in discussions about California's next big target: cap-and-trade. Read more about how lawmakers are looking to rein in the regulators in last night's California Climate.
| | TOP TALKERS | | | | 
Pete Hegseth pictured at the FOX News All American New Year event on Dec. 31, 2021. | Brett Carlsen/Getty Images | HEGSETH ASSAULT ALLEGATIONS, DETAILED — A police report made public late Wednesday details sexual assault allegations made after an October 2017 event in Monterey against Pete Hegseth, a Fox News personality and Trump’s nominee for secretary of defense. A woman told police that in his hotel room following an after party, he took her phone and blocked the door with his body so she couldn't leave. The next thing she remembered was Hegseth hovering over her, bare-chested, as she lay on a couch or a bed, according to the report. Hegseth, who had given a keynote speech at a California Federation of Republican Women convention, reportedly told investigators the encounter in his hotel room was consensual. The Monterey County district attorney did not file charges against him. The woman went to a Kaiser Permanente hospital for a sexual assault test several days later after telling her husband, according to the report. A Kaiser nurse first contacted police about the incident, citing her role as a mandated reporter. Hegseth paid the woman as part of a confidential settlement in 2020, his attorney Tim Parlatore confirmed this month, calling his client "falsely accused."
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San Francisco Mayor-elect Daniel Lurie. | Jeff Chiu/AP Photo | BILLIONAIRE LANE — San Francisco Mayor-elect Daniel Lurie, an heir to the billion-dollar Levi’s fortune, picked billionaire and OpenAI CEO Sam Altman to help lead his transition team. But, as Joe Fitzgerald Rodriguez of The San Francisco Standard reports, Altman’s plumb role with the incoming admin comes as his company lobbies the city for tax breaks. Outgoing Mayor London Breed denied such requests from Altman’s company. Will the next mayor? “We have not discussed any tax breaks,” Lurie told The Standard, when asked about his conversations with Altman. FRIENDLY FIRE — California Rep. Jim Costa is challenging a fellow Democrat to become the party’s ranking member on the House Agriculture Committee, Meredith Lee Hill and Nicholas Wu reported yesterday for E&E News. Some Democrats privately suggested ousting the current ranking member, ailing Rep. David Scott of Georgia, back in 2022, though former Speaker Nancy Pelosi backed Scott in public comments during that time.
| | A message from Phenomena Global: Fear not—the Cavalry is here, and it’s led by Artists. At Phenomena Global, we ignite movements that shape culture to define the future. We channel capital into creativity, empowering cultural icons, media powerhouses and celebrities to drive change that touches hearts, shifts perspectives and inspires action.
Our approach is built on connection. We unite visionaries across industries—artists, financiers, and influential media leaders—to design strategies that break traditional norms. These are purpose-driven ventures designed to use the power of entertainment to transform society. With deep access to powerful networks across nations, we unlock pathways for sustainable growth that deliver positive returns while championing meaningful change.
That’s Cultural Capitalism for Good—a new era where capital fuels culture, and culture drives global progress. At Phenomena Global, we’re crafting a legacy that transcends generations. One bold investment, one cultural milestone, and infinite opportunities.
Join the movement: www.phenomenaglobal.com/ | | | | | AROUND THE STATE | | — Fresno leaders are rejecting and stalling state-funded housing projects, even as its homeless population has exploded in recent years. (Log Angeles Times) — You could soon be fined for illegal parking in San Francisco — even if the spot isn’t marked as off-limits — because the city doesn’t have enough money to paint every curb affected by a new state law. (San Francisco Chronicle) — A new report from the Council on American Islamic Relations found nearly half of Muslim students surveyed at California colleges and universities say they’ve been targeted by harassment or discrimination. (Los Angeles Times)
| | | PLAYBOOKERS | | | 
Bill Nye, aka the Science Guy, was spotted on Capitol Hill this week. | Evan Agostini/Invision/AP | SPOTTED: BILL! BILL! BILL! — Freshman Democratic Rep-elect. George Whitesides, who knocked off outgoing Republican Rep. Mike Garcia in a battleground Los Angeles-area contest this month, announced a bill on X yesterday. Not the legislative kind, but the science kind: Whitesides posted a selfie with TV personality Bill Nye the Science Guy from the U.S. Capitol with the caption “Science rules.” SPOTTED: THE SAUCE DELIVERS — Speaking of Robert Garcia, the SoCal member’s House colleagues this week elected him Democratic Caucus leadership representative. His main duty in the role will be to advocate for newer members, ensuring their voices are heard by party leaders. Garcia’s new title comes after he found a creative means to lobby his fellow Dems. At a caucus meeting last week, he passed out mini bottles of Tapatío, which came with Tapatío koozies and a Garcia-branded lanyard (Tapatío is made in his LA County district). Apparently, his spicy antics worked! PEOPLE MOVES — Victor Munoz has joined SEMA as its senior manager for state government affairs, focusing on California and the western U.S. He previously worked for Southern California Edison, managing government stakeholder relations. BIRTHDAYS — Severiano "Seve" Christian, Leg director for state Sen. Scott Wiener … Rachel Tochterman in Sacramento Mayor Darrell Steinberg’s office … WANT A SHOUT-OUT FEATURED? — Send us a birthday, career move or another special occasion to include in POLITICO’s California Playbook. You can now submit a shout-out using this Google form. CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this subscriber-only service offers, click here. Want to make an impact? POLITICO California has a variety of solutions available for partners looking to reach and activate the most influential people in the Golden State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness amongst this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Rebecca Haase to find out how: rhaase@politico.com. | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Ottawa Playbook | Brussels Playbook | London Playbook View all our political and policy newsletters | | Follow us | | | | |
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