• As the Federal Trade Commission (FTC) considers implementing new rules prohibiting hidden fees in a range of sectors across the U.S. economy, U.S Rep. Salud Carbjal (D-Santa Barbara) is pushing the federal agency to crack down on burdensome junk fees that can rack up thousands of dollars in additional costs for American renters, according to a Jan. 10 statement from Carbajal’s office. Rep. Carbajal joined nine other House Democrats in a letter to FTC Chair Lina Khan urging the agency to finalize regulations that would prohibit unfair and deceptive practices related to fees that can misrepresent the total costs of rental housing and other goods, including live event ticketing and short-term lodging. Specifically, Carbajal and his colleagues highlight rental application fees, which can cost hundreds of dollars for each prospective renter—totaling thousands in a competitive market where families are competing for limited supply, and undisclosed add-on charges for a rental property that are assessed through the life of a lease, especially those that are not disclosed in a rental agreement. “As the third of Americans who are renters struggle to afford rising rent prices, with over 20 million renters reporting that the increasing cost of rent threatens their financial security, added and dishonest fees make it even harder for them to secure affordable housing,” the representatives wrote in their letter. “The balance of power weighs heavily in favor of landlords, particularly given the severe shortage of affordable housing and the combination of rising rents, inflation, and wage stagnation. The severe shortage of affordable housing deprives renters—especially low-income renters—of any meaningful way of walking away from landlords who tack on junk fees before, during, and after the lease term. To help empower renters, we encourage the commission to issue industry-specific interpretative guidance and explore future trade regulation rules specific to rental housing junk fees.”
• U.S. Sens. Alex Padilla and Laphonza Butler (both D-California) and a bipartisan group of 13 other Senate colleagues, called on U.S. Senate Committee on Agriculture, Nutrition, and Forestry leaders to address long-term drought in the upcoming Farm Bill, according to a Jan. 11 statement from Padilla’s office. As the American West continues to recover from a historic megadrought, it is critical that the Farm Bill prioritizes addressing long-term drought, including through tools to conserve water, improve watershed scale planning, upgrade water infrastructure, protect land from erosion, and create long-term resiliency on changing landscapes for growers in drought-affected regions. According to the first snow survey of the year, California remains in a historic snow drought—state officials found 7.5 inches of snowpack where they measured 5 feet of snow just last year. “Agriculture is the economic backbone for rural communities in our states. However, severe, long-term drought is devastating these rural areas. During periods of droughts, our farmers and ranchers face diminishing crop and livestock outputs. These negative effects reverberate through the community, affecting not just individual producers, but the broader local economy and food system,” the senators wrote in their letter.
• Gov. Gavin Newsom announced his 2024-25 state budget proposal, which aims to maintain the state’s stability while preserving key investments for education, public safety, addressing homelessness, mental health care reform, climate action, and other priorities, according to a Jan. 10 statement from Newsom’s office. Using some of the budget reserves built up over the years and other tools, this budget closes a projected $37.86 billion shortfall, according to his office. California’s Legislative Analyst’s Office believes the hole is deeper, a projected $68 billion. The 2023-24 state budget passed in June set aside reserves of close to $38 billion to prepare for a potential shortfall. “Thanks to the record reserves we have built up and a commitment to fiscal discipline over the years, our state is in a strong position to close this shortfall while protecting key priorities and programs that millions of Californians rely on,” Newsom said in the statement. “This balanced budget plan keeps California on firm economic footing while continuing our work to tackle homelessness, keep communities safe, expand access to high-quality education, overhaul behavioral health care, and fight climate change. I look forward to partnering with the Legislature to meet this moment with a balanced approach that meets the needs of Californians and safeguards our state’s future.”
