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The Republican-led Senate moved Wednesday to overturn key Biden-era waivers allowing California to set its own vehicle emissions, a major blow to that state’s effort to regulate pollution from cars and trucks that could have broad environmental impacts for the rest of the country.

And they will do it bypassing the 60-vote threshold typically needed to approve such a measure, infuriating Democrats who warned Republicans — despite their promises not to — were weakening the legislative filibuster. Republican leaders denied that was their intent and vowed to preserve the filibuster forever.

Republicans were livid when at the end of former President Joe Biden’s term, the Environmental Protection Agency greenlit California’s plan to phase out the sale of gas-powered cars by 2035, shifting the state towards electric vehicles. Republicans say the California plan will hurt the US economy and impact the rest of the country because other states follow its emissions rules.

In response, they readied action under the Congressional Review Act, which allows Congress to claw back agency rules without needing 60 votes to overcome a filibuster.

Tensions have built for weeks as Senate Republicans deliberated behind closed doors about whether to push the measure through despite a finding from the House’s Government Accountability Office that the CRA could not be used to nullify the California emissions waiver. Senate Republicans don’t believe the GAO has the authority to determine that.

The Senate parliamentarian — the neutral arbiter of Senate procedure — deferred to the GAO viewpoint. Despite that, the Senate took a series of votes to put it on a track to pass these CRAs in the coming days.

California has for many years set its own emission standards separate from the federal government. For decades, federal law has granted California the authority to do so, but the waiver has become a partisan football in recent years. President Donald Trump revoked that authority during his first term in 2019, before Biden reinstated it in 2022.

In one of the Biden administration’s last major actions on climate, the EPA in 2024 finalized California’s waiver – effectively greenlighting the state’s plan to phase out sales of new gas vehicles by 2035, the first regulation of its kind in the US.

California’s vehicle regulations matter a great deal to the auto industry because close to 20 other states and the District of Columbia have adopted them. And they have a big impact on climate policy; emissions from vehicles are one of the largest sources of planet-warming pollution in the US.

Senate Majority Whip John Barrasso called California’s efforts a “fantasyland” that will hurt ranchers and farmers in his home state of Wyoming.

“California’s EV mandates ban the sale of gas-powered cars and trucks. They threaten the freedom of every American to choose what they drive,” he said on the floor. “EVs currently make up 7 percent of the U.S. market. Even in California, they account for only 20 percent of vehicle sales. And sales are stalling. Yet California’s radical mandates require 35 percent of all vehicle sales to be electric by 2026 – 6 months from now. By 2035, it jumps to 100 percent.”

Senate Democrats have argued that not accepting the parliamentarian’s guidance sets a dangerous precedent, and they are particularly concerned that the GOP may do it again as she sets some of the perimeters of what will be allowed in the massive tax, spending cuts and immigration reconciliation bill moving through Congress now.

“It’s going nuclear, plain and simple. It’s overruling the parliamentarian. And second, what goes around comes around,” Senate Democratic Leader Chuck Schumer told reporters on Tuesday, referring to the so-called nuclear option, which is when the majority party changes Senate rules on a party line vote instead of 67-vote supermajority typically required to make a change.

Democrats insist that the Californian regulations were created as “waivers” under the Clean Air Act, meaning that they are not considered “rules” that can be overturned through the CRA. The GAO — which weighed in on the issue when that chamber passed these CRAs recently with bipartisan support — agreed.

However, Senate Republicans insist that they are not defying the parliamentarian and have said that Democrats’ concern for weakening the filibuster is hypocritical, coming from the party that has expressed opposition to the filibuster’s role in recent years.

“The only people that have attempted to get rid of the legislative filibuster – the Democrats – every single one up there that’s popping off and spouting off has voted, literally, to get rid of the legislative filibuster,” Senate Majority Leader John Thune told reporters at a press conference on Tuesday.

“This is a novel and narrow issue that deals with the Government Accountability Office and whether or not they ought to be able to determine what is a rule and what isn’t, or whether the administration and the Congress ought to be able to make that decision,” he added.

Sen. Martin Heinrich of New Mexico, the top Democrat on the Senate Energy and Natural Resources Committee, echoed Schumer’s concerns in a statement ahead of Wednesday’s vote.

“If Senate Republicans force a vote on the California Clean Air Act Waivers, they set a precedent that will allow Congress to overturn nearly any agency decision nationwide,” he warned. “I urge my colleagues to reject this gross overreach.”

“By opening this door, Republicans threaten to destroy our permitting and regulatory system, leading to higher energy costs for Americans and making it impossible for new developments to come online. Indeed, nearly every major and minor project the federal government touches could be stalled, creating significant uncertainty if not complete chaos. That is not what the American people want, and it cannot be what Senate Republicans want, either,” continued Heinrich.

Despite the financial stress of Golden State life, Californians are relatively good at paying bills compared with the rest of the nation.

Take student loans. In the first quarter of 2025, 18% of California student loans were late.

That may seem like a stunningly high rate of skipped payments, but it’s the 10th lowest delinquency rate among the states and the District of Columbia. And across the nation, 23% of student loans were delinquent.

That’s what was found by my trusty spreadsheet’s review of bill-payment data from the Federal Reserve Bank of New York. The research, from 2003 to the first quarter of 2025, examines debt levels and payments drawn from individuals with credit histories.

The latest report was the first since student-loan repayment reprieves ended. That means late payments on many educational loans were once again being reported to credit bureaus. This provides a window into the scope of this education-linked financial challenge.

Student loans are roughly 5% of all California debts. These borrowings equal $4,660 per capita of the $87,620 total consumer borrowings statewide.

Nationally, it’s a bigger hurdle: student loans run $5,470 per capita – or 9% of Americans’ $62,490 per capita debts.

The ability to pay varies wildly. Mississippi was the worst at student-loan repayment, with 45% of these debts in arrears, followed by Alabama, Wisconsin, Kentucky, and Oklahoma, all at 34%.

The best at making payments lived in Illinois and Massachusetts, with 14% delinquency, followed by Connecticut, Virginia and New Hampshire were next at 15%.

Bigger picture

To start 2025, only 1.9% of all California consumer debts were 90 days or more past due.

Yes, skipped bills increased from 1.6% at year-end 2024.  And it’s California’s highest level of tardy bills since the second quarter of 2020, when coronavirus lockdowns severely impacted the economy.

However, this level of delinquency is significantly lower than the 3.6% average lateness since 2003.

Nationally, 2.9% of bills were late in the first quarter, up from 1.9% at year’s end. Like California, the rate is still historically low. American tardiness has averaged 3.8% during the last 22 years.

California’s economy also has its challenges. Job creation has slowed to a crawl. The state remains unaffordable for the masses. The Trump administration’s “America First” thinking collides with California’s globally oriented business climate. Consumer confidence is also down.

That monetary angst can be found in the slowdown in Californians taking on new debts.

In the first quarter, total borrowings increased at an annual rate of only 0.8%. That’s well below the 3.3% growth pace since 2003.

It’s a similar picture across the nation. Borrowings are up 1% in a year vs. a 3.3% average growth.

Home sweet home

The New York Fed tells us Californians are getting better with home loans, which are 81% of all consumer debts statewide.

Just 0.56% of mortgage balances were 90 days or more late to start 2025. That’s down from 0.58% at year’s end. Although we’ll note that the late mortgage level in the fourth quarter of 2024 was the highest since the second quarter of 2020.

And lateness is historically low – below the average 2.8% late home loans since 2003.

Equally noteworthy is that California’s improvement rate comes as more Americans fail to make timely payments on mortgages, which are 70% of all U.S. consumer debts.

In the first quarter, 0.9% of U.S. home loans were late – the worst payment pace in five years. That’s up from 0.6% at year’s end, but this is still comfortably below the 2.6% historical norm.

There is a rising level of deeply troubled homeowners.

California had 15 new foreclosures per 1,000 consumers in the first quarter. That’s the highest since the first quarter of 2020 and up from 12 at year’s end. But to be fair, it’s also nowhere near the 88 per 1,000 average since 2003.

Same story nationally with 21 U.S. foreclosure starts per 1,000 consumers – up from 14 at year’s end but off the 70 historic pace.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

SAN FRANCISCO – New figures show that nationwide, Sacramento was the most searched-for destination among homebuyers looking to relocate, while San Francisco was home to one of the top cities that homebuyers were looking to leave.

Migration trends identified by residential real estate brokerage Redfin also showed that California was the top state homebuyers searched to leave. 

The top states people searched to relocate to included Florida, Arizona, and North Carolina.

The analysis covered the period from February to April of this year and was based on a sample of some 2 million Redfin users who searched for homes across more than 100 major U.S. metro areas, the company said. Those included in the dataset viewed at least 10 homes for sale in a three-month period. 

Year-over-year declines

Redfin’s latest figures also show a year-over-year decline in home prices in six of the nine Bay Area counties.

By the numbers:

Alameda County saw the biggest drop of 4.3% with a median home price of $1,167,500.

Contra Costa County saw a similar decline at 4.2%, though its median home price was much lower at $829,000.

Solano (-1.6%), Napa (-1.1%), San Mateo (-0.89%), and Marin (-0.4%) counties also saw year-over-year declines, though there were large differences in their median prices.

Solano County had a median of $575,500. 

Napa County’s median was $920,000.

San Mateo County had a median of $1,665,000.

Marin County’s median was $1,543,750.

Year-over-year increases

San Francisco saw the Bay Area’s biggest increase from a year ago at 3.9%, with a median of $1,455,000.

Santa Clara County’s increase was 3.6%. The county also had the highest median home price in the Bay Area at $1,750,000.

Compare that with Sonoma County, with the lowest median in the Bay Area of $828,353. The county saw an increase of 1.4% last month from a year ago.

Dig deeper:

Other notable findings showed that Sunnyvale was the city with the fastest growing sales price in all of California, with home prices up almost 30% compared to last year.

Sunnyvale’s median price was $2.3 million last month, according to Redfin.

Berkeley had the fourth-fastest sales growth, up almost 20%, putting the median at almost $1.6 million.

Danville also made the top 10 list of California metros that saw a jump in sales prices. 

In seventh place, the Contra Costa County city had a 15% spike in the sale price compared to last year. It also saw a nearly 15% decline in the number of homes sold. 

Danville’s median price was $2.3 million.

Bay Area cities identified as ‘most competitive’  

The Bay Area took every slot in Redfin’s list of top 10 “most competitive” cities in the state.

SEE ALSO: Homebuyers need to make more than $400K in this Bay Area region to afford the ‘typical’ home, analysis finds

The real estate company compiled its list based on the most homes that received multiple offers, often with waived contingencies. Redfin then scored the cities on a 0 to 100 scale. 

The metros deemed “most competitive” fell in the 90-100 range.

Top 10 Most Competitive Cities in California

1. Santa Clara
2. Sunnyvale
3. Alameda
4. Daly City 
5. Livermore
6. Mountain View
7. Berkeley
8. Danville 
9. Castro Valley 
10. San Ramon

(Source: Redfin)

State Farm Insurance one step closer to raising rates

A court ruling on Tuesday clears the way for State Farm Insurance to move forward with significant rate increases for homeowners and renters. Homeowners would see an average 17% hike, while renters and condo owners would see prices increase an average of 15%. We spoke to industry expert Karl Susman for his analysis on the situation.