Carlsbad subcommittee hears federal, state legislative updates; OMB grants rule and bipartisan housing bill flagged

Contract lobbyists and city-hired legislative representatives updated the subcommittee on federal and state developments affecting Carlsbad on July 6.

Morgan Kessler of Carpe & Clay summarized the federal calendar and urged attention to near-term deadlines: Congress would reconvene and appropriations work continues, and a bipartisan housing package titled the 21st Century Road to Housing Act had passed both chambers and been sent to the president. Kessler said the president had 10 days to sign or veto the bill and that stakeholders were watching closely.

Kessler also raised an immediate administrative concern: the Office of Management and Budget had issued a proposed rule in late May that would substantially revise federal grants administration and compliance requirements, potentially permitting broader authority for agencies to terminate grants and changing grant-review roles. The proposed rule was open for public comment through July 13; she said the city and the U.S. Conference of Mayors were working to seek delay or modification to mitigate local impacts. "If this rule were to become final as it currently stands it would have significant impact not just on the city but any entities or organizations within the city that receive federal funding," she said.

From the state side, Ethan Nagler of the California Public Policy Group reviewed session timelines and the status of bills the city monitors, including AB 2179 (on the Senate floor), AB 2453 (amended in the Senate, requiring concurrence), and a series of housing-related bills being watched or opposed (references included AB 1294, SB 1164 on voting-rights litigation exposure, and items tied to cap-and-invest revenue impacts). Nagler highlighted the recently signed primary budget and trailer provisions that include one-time and ongoing allocations for housing programs and zero-emission vehicle incentives.

Public commenter Chris Wright (Equitable Land Use Alliance) presented an updated list of housing bills his group opposes (AB 956, AB 1751, AB 2676, SB 677, SB 1116 and SB 1361) and urged the subcommittee to continue submitting letters and testimony. Councilmembers expressed appreciation for the firm’s federal funding identification work and asked staff to continue coordinating testimony on bills of interest.

The subcommittee took the single formal position recorded in the meeting — opposing AB 17 51 — and otherwise directed staff to continue monitoring bills and pursue advocacy as needed.