California
Key California laws taking effect in 2026
A raft of new legislation is set to take effect for Californians in 2026 after Governor Gavin Newsom signed hundreds of bills over the past year.
The new legislation affects a wide range of issues, such as reducing drug costs, increasing the minimum wage and possibly barring police officers and federal agents from wearing face masks.
Why It Matters
Many of the measures reflect the state’s ongoing push to address affordability, equity and transparency—often amid tension with President Donald Trump’s White House.
The changes directly affect millions of residents, employers, landlords, students and consumers in the nation’s most populous state, serving as a bellwether for legislative trends nationwide.
What To Know
Here is a breakdown of some of the key laws set to go into effect in California in 2026:
- Minimum wage increase
The minimum wage is set to increase across the state from $16.50 to $16.90 per hour for all employees.
Several local municipalities are also increasing their minimum wages further, as they are allowed to set wages higher than the state minimum.
- Reduction to drug costs
From January 1, Senate Bill 40 would require large state-regulated health insurers to cap insulin co-pays at $35 for a 30-day supply. The same requirement takes effect for smaller plans in 2027.
Californians would also have access to low-cost, state-branded CalRx insulin, priced at $55 for five pens.
- Gender-neutral restrooms in schools
Starting July 1, every California public school must provide at least one gender-neutral restroom, as mandated by SB 760.
- Police identification and mask ban
From January 1, local and federal law enforcement officers would generally be barred from wearing masks to conceal their identities and must display visible identification when performing enforcement duties.
These measures, codified in SB 627 and SB 805, are facing legal challenges from federal entities.
Tricia McLaughlin, a Department of Homeland Security spokesperson, said the department would not comply with the law.
- Ban on cat declawing
Declawing cats for nonmedical reasons is set to be prohibited statewide. The practice is widely condemned as inhumane by animal welfare advocates.
- Combating auto scams
Consumers who buy or lease a new or used car from a dealer would have the right to return it for a full refund within three days of purchase. California is set to become the first state in the nation to offer the protection.
- Single-use plastic bag ban
From January 1, major changes to the state’s plastics policy go into effect, banning all plastic carryout bags—even thicker varieties previously permitted. Stores would only be allowed to distribute recycled paper bags, subject to a minimum charge.
- AI transparency and protections
AI operators must clearly disclose when chatbots are not real people, and companies must implement safeguards to prevent chatbots from encouraging self-harm in minors.
Additional AI regulations are set to increase transparency, ban chatbots from impersonating health care professionals and require new police reporting on AI use.
- Required appliances in rentals
Landlords would be legally required to provide working refrigerators and stoves in rental apartments from January 1.
- Extended window for sexual assault lawsuits
A new law, AB 250, creates a two-year window—from January 1, 2026, to December 31, 2027—for adult survivors of sexual assaults to file lawsuits alleging a cover-up. It would allow these individuals to file cases even if the usual statute of limitations lapsed.
What People Are Saying
California Governor Gavin Newsom said in October regarding the legislation on drug costs: “I am pleased to sign SB 41, a bill that will lower health care costs for all Californians. This bill, together with related efforts in the 2025 budget and CalRx, represents the most aggressive effort in the country to lower prescription drug costs. California continues to lead the way in lowering costs, increasing transparency, and ensuring that the savings are passed on to payers and consumers.”
He wrote in a letter in September regarding the ban on officers wearing masks: “Acting on behalf of an authoritarian President, federal immigration authorities are spreading fear and terror throughout California with indiscriminate raids that have rounded up American citizens, people legally in the United States, working parents, and even children.
“America should never be a country where masked ‘secret police’ grab people off the streets and throw them into unmarked vans and speed away. It is unacceptable that government agents, guns in hand, have seized our neighbors while wearing masks under the pretense of protecting themselves when they are, in fact, hiding from public accountability and sowing fear to intimidate the American people.
“For the safety of both the public and law enforcement, Californians must know they are interacting with legitimate law enforcement officers, rather than masked vigilantes.”
Attorney General Pam Bondi said in November in response to the measure: “Law enforcement officers risk their lives every day to keep Americans safe, and they do not deserve to be doxed or harassed simply for carrying out their duties. California’s anti-law enforcement policies discriminate against the federal government and are designed to create risk for our agents. These laws cannot stand.”