At Sacramento service event, Newsom calls tech verdict a 'moment of reckoning' and renews housing-enforcement push

Office of the Governor · March 25, 2026

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Summary

During the same Sacramento event, Gov. Gavin Newsom urged renegotiation with tech companies after recent litigation, cited SB 53 and court decisions as a pathway to accountability, and said the state filed 15 lawsuits over housing element violations while pointing to accountability.ca.gov.

At the Community Shop Class event where state leaders promoted the California Service Corps, Governor Gavin Newsom used his remarks and a subsequent question-and-answer period to discuss technology litigation, AI regulation and housing enforcement.

In response to a question about a verdict in the Meta trial, Newsom said the moment calls for greater accountability from big technology companies and suggested the state must “renegotiate our contract with big tech.” He framed recent court actions as a turning point: “This is a moment of reckoning,” he said, adding that litigation and regulatory steps could compel companies to reconsider practices that lawmakers and juries are challenging.

Newsom referenced state policy work on technology safety, including SB 53, which he described as part of California’s approach to safety guardrails for large language and frontier models. He also cited recent court decisions in New Mexico and Southern California as part of the legal environment shaping industry accountability.

On housing, Newsom said the state had filed 15 lawsuits tied to notices of violation under the housing element process administered by HCD and said the administration will condition partnership and funding on compliance. “Put a website together, accountability.ca.gov,” he said, urging public scrutiny of local compliance. He said the state would not continue to fund jurisdictions that fail to implement required housing policies.

Newsom also referenced investments tied to Proposition 36 and said surveys show gaps in treatment resources that warrant attention. He described continued efforts to pursue fraud and abuse related to licensing and said the administration has placed a moratorium on new licenses since late 2021; he promised a “significant announcement” in coming weeks to reinforce the state’s enforcement framework.

The governor’s remarks were delivered without announcing a new law or immediate change in state contracting; they were presented as the administration’s current posture and a signal of forthcoming enforcement and accountability actions.

Questioner (unnamed in the transcript) prompted the tech-focused exchange; the governor answered directly in front of assembled service corps participants and program alumni.