New California City With Jobs and Homes? Not This Year

By the Editorial Team · Sunday, September 6, 2026

California Forever's plan to build a new city with thousands of homes and middle-class jobs in Northern California stalled after a key legislative bill failed to pass in the final days of the state’s session. This delay highlights ongoing challenges in advancing large-scale housing projects amid regulatory complexities and growing public resistance, with the company planning to revisit the effort in 2027 under potentially different political leadership.

California Forever, a development company supported by Silicon Valley billionaires, has encountered a setback in its plan to build a new city in Northern California designed to address the state’s housing and employment challenges. Despite considerable backing from labor unions and implied support from Governor Gavin Newsom, a key legislative measure that would have advanced the project stalled during the final days of California’s recent legislative session.

The proposed development aims to create several thousand homes about an hour’s drive from San Francisco, targeting the state's acute shortage of housing. Additionally, California Forever plans to establish a shipyard and manufacturing facilities, generating middle-class jobs in a region seeking economic revitalization. The project has been well funded and supported by a team of consultants dedicated to securing legislative approval.

However, the initiative faced opposition that emerged in a mixture of public demonstrations—including protesters delivering comments through song—and unusual moments such as the appearance of a stuffed monkey during hearings. Ultimately, these efforts contributed to the stalling of the bill before the legislative session concluded last week.

Despite this setback, California Forever remains committed to pursuing its vision and is expected to return to lobby lawmakers in 2027. By that time, however, the state will have a new governor whose policy priorities may differ from the current administration’s, injecting uncertainty into the project’s future.

Experts highlight the difficulty of executing large-scale development projects in California, noting complex regulatory environments and growing public skepticism, particularly toward initiatives backed by wealthy tech investors. Ben Metcalf, managing director of the Terner Center for Housing Innovation at the University of California, Berkeley, emphasized the challenge, stating, “It’s just incredibly hard to do large projects in California.”

The stalled effort underscores the persistent obstacles projects face in addressing California’s housing crisis and suggests that mounting resistance to the influence of the billionaire class could further complicate efforts to build new communities and infrastructure in the state.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.