Complex challenges are driving California’s political, economic and environmental landscape in 2025. And uncertainty. Uncertainty around the devastating and costly Los Angeles wildfires, President Trump’s second term and how to tackle voters’ concerns on cost of living.

Left to Right: LPA Senior Account Executive Mark Borges, Kiana Valentine, Delilah Clay & Jon Ross.

LPA recently hosted a conversation with three veteran legislative advocates, Delilah Clay of Barros Clay & Associates, Jon Ross of KP Public Affairs and Kiana Valentine of Valentine Strategies, Inc., who shared their candid thoughts around what we should anticipate.

The panelists provided three main takeaways:

• Wildfire Response & Recovery: California’s wildfires highlight the need for a multi-pronged approach to emergency response and recovery—addressing immediate needs while implementing long-term strategies for building more resilient communities, all while aiming to keep costs in check.
• “Trump-Proofing” & Changing State & Federal Dynamics: The state is likely to face shifting federal policies under the Trump administration, including conditional disaster aid, immigration enforcement, Medi-Cal changes and new trade tariffs. However, California will continue to assert its leadership in privacy, social media and environmental policy, often setting the standard for the rest of the country.
• Focus on Affordability: The high cost of living in California is a top concern for legislators given what they heard from voters in November. This will likely color legislation carried this year from housing and homelessness to energy and infrastructure and health care.

Wildfires, Disaster Preparedness & Housing

The Los Angeles wildfires continue to burn, displacing entire communities and disrupting the entertainment industry. In response, the Governor is fast-tracking rebuilding efforts by cutting red tape and allocating emergency funds. Time will tell whether efforts to fast-track rebuilding in L.A. will set the stage for long-term reforms that help the state increase housing supply or carry over to other infrastructure priorities like new transmission or roadway improvements.

Energy & Climate

Energy and climate will continue to sit at the forefront of policy discussions, especially given expected tensions between the incoming Trump administration and California. President Trump has already signed executive action against California’s clean air waivers and issued an “energy emergency” declaration, straining already tense relationships between the administration and California’s senior environmental leaders. But policy priorities, like cap-and-trade reauthorization and shoring up grid reliability as AI grows energy demand,  will compete against efforts to curb rising energy costs. Legislators may be challenged to find a way to balance California’s climate commitments with keeping costs affordable for consumers.

“Wait and See” Budget

The Governor’s balanced budget proposal – previewed the day before the fires broke out in Los Angeles – is now largely a “wait and see” budget. The impact of the fires and related recovery and rebuild efforts could mean big changes in the May Revision. While Gov. Newsom and legislative leaders are currently proposing $50 million to fund potential litigation against the Trump administration, additional funding may be allocated in budget revisions depending on actions taken by the new administration in the first part of this year.

Navigating California’s Political Landscape

When asked about takeaways from the 2024 General Election, panelists suggested that California’s electorate is asking for change, especially on kitchen table issues like public safety and affordability. The new limits on the number of bills legislators can carry, combined with a shifting electorate, may require lawmakers to be more selective about the bills they author and votes they cast. This means that legislators may be slower to decide on the issues they will champion, requiring more education and engagement early in the session.

This year, as the state juggles immediate emergencies with forward-thinking policy goals, it’s clear that California’s leadership is keen to demonstrate progress amid challenges. From housing and energy to disaster preparedness and affordability, the Legislature’s actions in 2025 will set a precedent for addressing the interconnected challenges of a changing world.

A note from #TeamLPA: Our hearts go out to the Californians impacted by the ongoing Los Angeles fires. If you are looking for a way to help, click HERE for a list of organizations from the Los Angeles Times you can support during this time, or HERE if you need assistance or resources.