San Jose City Council's Super Tuesday Recap

• Budget UNANIMOUSLY Approved: The City Council voted unanimously to approve the FY 25-26 budget. We want to thank Mayor Mahan and Council for approving a budget focused on filling our budget deficit, investing in economic development, and supporting the unhoused. 

• Measure E Reallocation Approved:  In an 8-3 vote, with dissent from Councilmembers Doan, Ortiz, and Campos, the Council approved utilizing 90% of Measure E funds for interim housing. This is a huge win for our city, filling our budget deficit and supporting our commitment to adding shelter beds.

• "Responsibility to Shelter" Concept Moves Forward: In a 9-2 vote, with dissent from Councilmembers Ortiz and Campos, the City’s move to implement a “Code of Conduct for Encampments,” along with dedicated housing and police units to connect unhoused individuals to shelter and services, moves forward. We’re encouraged to see this approach advance as reducing unsheltered homelessness remains a top priority for the Mayor and a shared goal for our community.



• Mayor's Pay for Performance May Have New Life: The Chamber is disappointed to see that Pay for Performance was rejected in a 7-4 vote. We thank Mayor Mahan, Vice Mayor Foley, and Councilmembers Casy and Mulcahy for their alignment with this private sector concept. There is still potential for this concept to go to the ballot box - keep an eye out for updates. 

Other Happenings in San Jose

• BART Phase II Approaching Critical Deadlines: At the June 12 VTA/BART Phase II Oversight Committee meeting, members unanimously approved off-ramping the KST joint venture contract in hopes to see some cost savings. VTA and the joint partnership firm were unable to reach a Stage 2 price within budget for the project. VTA is now exploring alternative delivery methods, including repackaging scopes and revisiting risk allocation. The Board of Directors will vote regarding off-ramping KST's contract on June27th. In the meantime, there are still several key concerns from the Chamber's perspective, namely design and tunneling alternatives which includes "cut-and-cover" methodology, cost and timeline reevaluations, and transparency concerns. We will be in attendance at the June 27th meeting and await the Board's approval regarding contract off-ramping. 



• Chamber Supports General Plan Review: At the June 3 Council meeting, the Chamber submitted comments in support of the proposed scope for San Jose’s upcoming four-year General Plan review—an important opportunity to refine the city’s growth strategy. We’re encouraged by staff’s focus on four key areas: increasing residential capacity, revising urban village plans, adjusting the Jobs/Employed Residents ratio, and expanding CEQA exemptions. We also strongly support staff’s recommendation to designate the Planning Commission, rather than reconvening a General Plan Task Force, as the approval body. We look forward to engaging further as the process moves ahead later this year.

Statewide Advocacy Updates

• Two Priority Bills Move to Second House: Two Chamber-backed bills have cleared the first house and are advancing: a proposal to extend alcohol service to 4 a.m. (AB 342 – Haney) and legislation to give small businesses a “right to cure” period before facing ADA lawsuits (SB 84 – Niello). With the critical June 6 deadline passed, each bill now heads to the opposite house for review. We look forward to continuing our advocacy and pushing both measures to the Governor’s desk.



• Opposing Onerous Cardroom Regulations at DOJ's Bureau of Gambling Control: The Chamber submitted a letter to the Department of Justice opposing proposed state regulations on blackjack-style games and player-dealer rotation in cardrooms. These changes threaten up to 85% of revenue for San Jose’s two licensed cardrooms, which currently contribute over $30 million annually to the city’s general fund, funding essential services like police, fire, and parks. We urged the Bureau of Gambling oppose the regulations as they could lead to job losses and service cuts that would impact San Jose's businesses and residents alike.  

Federal Advocacy Updates

• Supporting a 10-Year Moratorium on Enforcement of AI Regulation: The Chamber joined in signing a nationwide letter urging the U.S. Senate to support a 10-year moratorium on enforcement of state and local AI-specific regulations. With over 1,000 AI-related bills introduced in 2025 alone, a patchwork of rules threatens nationwide deployment. We shared the U.S. Chamber's letter with the Silicon Valley Chamber Coalition to ensure our region’s voice is heard on AI policy.

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