SCAG Applauds State Leaders for Addressing Housing Crisis in Budget Deal


Governor Newsom’s office and state legislative leaders announced an agreement on the state budget that retains $480 million for the Regional Early Action Planning 2021 (REAP 2.0) program, a significant success achieved by the collective advocacy efforts of SCAG and our partners.    

SCAG Executive Director Kome Ajise released the following statement regarding the REAP 2.0 funding included in the budget deal:  

“We applaud Gov. Newsom and legislative leaders’ decision to restore REAP 2.0 funding and thus acknowledging the critical role this program plays in addressing the housing crisis. 

“This past year, SCAG awarded more than $192 million in REAP 2.0 funds to 100 transformative projects across the six-county region designed to accelerate housing production in a thoughtful, strategic and sustainable manner. These projects have been in jeopardy pending the earlier cuts proposed to REAP.  

“The region faces compounding challenges related to our housing shortage, including the alarmingly high number of unhoused people. After decades of not producing enough housing to meet our population needs, this problem will take years to address—and will require both long-term planning and short-term projects. SCAG has made REAP part of a much-needed strategy in its work to align activity across the region toward shared housing and climate goals.  

“The innovative local initiatives funded by REAP are real and ready to go. They also represent the kind of creative thinking, collaboration and resourcefulness necessary to address one of California’s most pressing challenges: increasing housing supplies and ensuring that our children and future generations can afford to live here. 

“We thank the governor and legislature for prioritizing REAP 2.0 and providing local jurisdictions with the funding to help them meet our housing needs. We appreciate the difficult decisions to balance many needs, which ultimately support regional agencies’ work toward better outcomes in housing affordability and climate change.” 

Other good news for the region in the details of this budget deal include: 

  • $600 million restored to the Active Transportation Program, subject to appropriation after two years. 
  • $148 million restored to the competition portion of the Transit Intercity Rail Capital Program. 
  • Maintained current investments and includes $150 million in flex funding for the Middle Mile Broadband Program to prioritize construction of network segments in underserved areas.  
  • $150 million preserved for grade separation projects.  
  • $1 billion to the Homeless Housing, Assistance and Prevention Round 6 to provide continued funding for local governments. 
  • An additional $500 million approved for the Low-Income Housing Tax Credit program. 
  • Rejected proposed cuts to the Multifamily Housing Program.  

The state legislature will still vote on the final budget for formal adoption, which is expected to happen later this week. SCAG will continue to monitor the process and share updates and information on next steps as it becomes available.