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Monday, October 19, 2026Bay Area Market: Coverage updated daily

How a gym, a farmers market and MMA fighters landed millions in Newsom’s last budget

The California Legislature’s secretive earmark process allows lawmakers and Gov. Gavin Newsom to dole out money for projects with little public scrutiny or notice, raising transparency and equity concerns even among some lawmakers.

San Francisco Bay Area homes and neighborhoods
Curated News BriefBased on original reporting by CalMatters Housing (September 15, 2026). The summary below is the Journal’s; the local analysis is original commentary by Omar Murillo.

Look, according to CalMatters Housing, there's a practice happening in Sacramento that a lot of folks don't know about, and honestly, it's worth understanding because it affects how your tax dollars get spent. Basically, California lawmakers and the governor have this backdoor process where they can hand out over a billion dollars in funding to pet projects in their own districts with virtually no public debate or transparency. This year alone, they distributed around one point three billion dollars this way, and most people never even knew it was happening.

Here's how it works in practice. The Democratic leaders in the Assembly and Senate let their colleagues submit private wish lists for funding, then suddenly these projects pop up in a budget bill just days before the legislative session ends. There's barely time for anyone to look at what's being funded or ask questions. According to the reporting, a gym renovation in Santa Barbara got twenty-nine million dollars, a farmers market in Marin County where the governor lives received thirteen million, and various other projects quietly made the cut. The thing that gets me is that lawmakers don't even have to publicly attach their names to these requests, so voters rarely know who fought for what.

What makes this even more problematic is the inequality baked into the system. CalMatters found that most of the money flows to urban counties represented by powerful Democrats, while entire rural counties represented by Republicans got nothing at all. About seventeen counties didn't receive any earmark funding whatsoever. Even some lawmakers acknowledge the frustration here. One senator told CalMatters he wished they could run the process earlier and more openly through committees where the public could actually see what's being requested.

The state argued that the funding breaks down into things people support like nonprofits, arts projects, housing initiatives, and infrastructure improvements. But critics point out that California is struggling to fill gaps in healthcare funding left by federal cuts, yet somehow found one point three billion dollars for these special allocations in the final hours of budget negotiations. One nonprofit leader described the frustration of organizations going through normal grant processes all year only to see half a billion dollars suddenly appear at the last second through these secret channels.

What I am seeing locally is that this kind of process can have real consequences for how development and community projects get prioritized. Here in the Bay Area and Fremont especially, we're watching where money flows and it matters enormously for real estate development, community infrastructure, and the overall health of our neighborhoods. When funding decisions happen behind closed doors based on political connections rather than transparent processes, it affects property values, development potential, and what kinds of investments communities can actually make. This is something every buyer and seller in our region should be paying attention to because it shapes the landscape we're all building our futures in.