August 25, 2025

In continuing efforts to elevate our region’s voice, Chamber’s President and CEO Chris Cate participated in a panel discussion for the Assembly Select Committee on Asia/California Trade and Investment, chaired by Assemblymember Jessica Caloza. California exported over $71B in goods to Asia last year, and San Diego’s top industries such as life sciences, clean tech, and semiconductors, continue to be at the frontlines of this exchange. The Select Committee will serve as a forum to explore strategies that promote trade, investment, and cooperation between California and key Asian partners including Japan, South Korea, India, and the Philippines. The Chamber has worked hard to build on these relationships. In recent years, we have met with leaders from many Asian countries including Japan, Vietnam, and South Korea, engaging in conversations about shaping the future of our economy and ensuring that San Diego businesses are connected to opportunities to elevate their business.

Last week, Governor Gavin Newsom and California Democratic leaders publicly unveiled draft congressional maps and launched the “Election Rigging Response Act” a proposed constitutional amendment to appear on the November 4 special-election ballot this fall. Governor Newsom framed the move as a defensive counter to Republican redistricting efforts in Texas, aiming to flip five GOP-held House seats while by-passing the state’s independent Citizens Redistricting Commission until 2030. That requires going to the voters for their approval. If passed, the initiative would have a “trigger,” meaning the redrawn map would not take effect unless Texas or another GOP-led state moved forward with its own gerrymandering effort. Opposition is swiftly mobilizing, including former Governor Arnold Schwarzenegger who recently called it a partisan power grab. The Chamber team has begun engaging in conversations with our partners across the state regarding the initiative and will continue to keep members updated as it moves forward in the coming months.

California is moving legislation forward to extend the Cap-and-Invest program, formerly named Cap-and-Trade, beyond its current 2030 sunset, aiming for reauthorization through 2045. Lawmakers are expected to introduce enabling bills before the end of the legislative session and will most likely vote on proposals in early September. In the proposed budget, Governor Newsom allocated $1.5B to Cal Fire for wildfire response and $1B annually to high-speed rail, drawing from Cap-and-Invest revenues, which are currently estimated at about $4B. These allocations would consume most of the available funds, sparking concerns from various groups across the state regarding reduced state support for clean transit, EV incentives, and infrastructure projects. Additionally, regulatory updates to tighten emission caps are still pending from the California Air Resources Board (CARB) and are expected later this year which presents even more uncertainty for Cap-and-Invest. The Chamber continues to monitor the legislative and regulatory actions affecting CARB throughout the remainder of the year and will engage in changes that affect our region.