California Voters to Decide on $11.25 Billion Housing Bond

California voters will decide on Proposition 1 this November, a measure that would authorize the state to sell $11.25 billion in general obligation bonds to address the housing crisis. The funding is earmarked for several groups, including $7.2 billion for low-income and supportive rental units, $1.25 billion for veterans' home loans, and $1.1 billion for low-to-moderate income homebuyers, with additional allocations for students, tribes, and farmworkers.

Governor Gavin Newsom and housing advocates support the measure, arguing the funds are essential to restart stalled affordable housing projects. The state would repay the bond from its general fund at an estimated annual cost of $500 million to $600 million over 25 years.

Opponents, including Republican Senator Tony Strickland, criticize the proposal as a bait-and-switch. Strickland argues the measure uses veterans to justify a massive debt increase and warns that borrowing against future revenues is risky given the state's fluctuating finances.