April 2026 Sacramento Update
As the legislative session moves into full swing, activity at the Capitol is accelerating. Policy committees are now hearing bills at a rapid pace, and we are seeing an increasing number of proposals that—while often well-intentioned—do not fully account for how they uniquely impact community banks. This makes continued engagement with lawmakers especially important.
That engagement was front and center on March 25, when community bankers from across California came together for CCBN Lobby Day at the Capitol. Throughout the day, we met with legislators and staff to reinforce the essential role community banks play in supporting local economies and to highlight how certain proposals could create unintended consequences if not carefully tailored. A key theme in every conversation was the importance of maintaining a competitive and viable state charter system.
Our discussions focused on several high-priority bills, including AB 2674 (Schiavo) and AB 801 (Bonta), where we raised concerns about operational impacts and the need for a more measured approach. We also addressed AB 1842 and AB 1847, which would significantly expand mortgage forbearance requirements. While intended to support borrowers, these proposals risk limiting the flexibility community banks need to work directly with their customers and could create longer-term challenges for both lenders and borrowers.
The Legislature is in recess this week, but that break will be brief. Beginning next week, lawmakers will enter a month of intensive policy committee hearings, where many of these proposals will be debated and shaped. This period will be critical in determining which bills move forward.
At the same time, the broader political landscape continues to evolve. Early polling in the 2026 Governor’s race shows Republicans Steve Hilton and Chad Bianco leading the field in the mid-teens, with Democrats Katie Porter, Eric Swalwell, and Tom Steyer close behind. With multiple Democratic candidates dividing the vote, there is growing concern about the possibility of a GOP vs. GOP general election under California’s top-two primary system.
Looking ahead, potential ballot measures are also beginning to take shape, including a proposed billionaire tax and a voter ID initiative—both of which are expected to generate significant debate.
As both the legislative session and political cycle intensify, we will continue to advocate for policies that recognize the unique role of community banks and ensure their ability to serve customers and communities across California.