The Affordability Report: Week of Sept 15th

We are introducing our biweekly cost of living tracker and updates!

After the first 100 days of the Trump presidency, The Rebuild launched our (Anti) Cost of Living Tracker. We realized that with so much news constantly unfolding, it made sense to turn this into a regular biweekly segment!

Here, you’ll find recent stories highlighting both positive and negative updates that affect your daily cost of living—along with why they matter.

As always, we welcome your comments, shares, and questions. You can reach me directly at Tahra@progresschamber.org or contact Gary Winslett at Gary@progresschamber.org.

New Pro–CoLA Developments

• SB 79 Culminates Eight-Year Fight to Legalize Homes Near Transit

  What happened: California’s legislature passed SB 79, a bill legalizing apartments and condos near the state’s highest-capacity transit stops, such as train and rapid bus lines. The measure follows earlier failed efforts like SB 827 and SB 50 but builds on incremental reforms that expanded accessory dwelling units and ended parking mandates. The bill now heads to Governor Gavin Newsom’s desk for signature! You can find previous Rebuild posts on the bill here and here. Special shout-out to California YIMBY and their great work here!

  Why it matters: California faces one of the nation’s worst housing shortages. By unlocking multi-family housing near transit hubs, SB 79 directly tackles affordability, reduces car dependence, and supports climate goals. The bill also represents a political shift: state lawmakers are increasingly overriding restrictive local zoning to address the crisis.

• Rep. Friedman Announces Bipartisan Bill to Lower Housing Costs and Accelerate Housing Construction
  What happened: Rep. Laura Friedman (CA-30), alongside Rep. Chuck Edwards (R-NC), introduced the Cut Red Tape for Housing Act. The bipartisan bill creates a tailored exemption from the National Environmental Policy Act (NEPA) for certain urban infill housing projects that meet strict environmental and site criteria. The legislation is designed to lower costs and speed up affordable housing development by removing outdated federal hurdles, while still requiring environmental due diligence and excluding high-risk sites.
  Why it matters: Streamlining approvals for environmentally safe, small-scale infill projects in already-developed urban areas, the bill aims to accelerate affordable housing supply without weakening environmental protections. Its bipartisan support and broad endorsements from housing organizations and policy groups suggest growing momentum in Congress to tackle housing shortages at the federal level. (Keep an eye out for this week’s Rebuild Conversations with Rep. Friedman about the bill!)

• California to cap insulin co-pays at $35, easing an acute healthcare cost
  What happened: California lawmakers unanimously approved SB 40, sending it to the governor on Sept. 10, which will cap patient co-payments for insulin at $35 per month for a 30-day supply. The bill, authored by Sen. Scott Wiener, prohibits insurers from charging more than $35 out-of-pocket and bans deductibles for insulin, effective 2026 for large group plans (2027 for individual/small group). This state action follows the example set by Medicare’s recent insulin cap, aiming to make the life-saving diabetes medication affordable for all Californians.
  Why it matters: Insulin costs have spiraled – tripling in price over the last decade – forcing 1 in 4 diabetics to ration or skip doses because they can’t afford them. By capping co-pays at $35, California is directly attacking a major driver of healthcare expenses for millions of residents (about 4 million Californians have diabetes). The change means no one with insurance will have to pay hundreds of dollars a month for insulin anymore.

• Sens. Moran, Blumenthal Introduce Bill to Deliver Cost-of-Living Increase for Veterans
  What happened: Bipartisan legislation, the Veterans’ Compensation Cost-of-Living Adjustment Act of 2025, would boost disability compensation, clothing allowances, and survivor benefits to match inflation.
  Why it matters: Veterans and their families often rely on fixed benefits that can quickly lose value during inflationary periods. Indexing benefits to the cost of living ensures their purchasing power is protected, reducing the risk of hardship for those who served.

• California Assembly Introduces Cost of Living Reduction Act (AB 23)

  What happened: California lawmakers introduced the Cost of Living Reduction Act of 2025, which would suspend state gas and utility taxes and fees, issue up to $2,500 in direct household relief rebates, and establish a state commission to recommend further affordability strategies.

  Why it matters: Gas, electricity, and utility bills are among the most volatile monthly expenses. By directly lowering these costs and supplementing households with rebates, AB 23 would provide both immediate financial relief and a framework for longer-term cost control.
  

• Michigan Legislators Advance Bipartisan Heating Relief
  What happened: Schuette’s proposal to update the Home Heating Tax Credit would shift its inflation measure to the national CPI, ensuring families aren’t shortchanged by outdated formulas. The bill has drawn bipartisan support in Lansing and is designed to lock in assistance for the state’s most vulnerable households.
  Why it matters: Heating costs rise faster than incomes in many cold-weather states. Without periodic updates, credits lose real value, leaving seniors and low-income residents exposed to winter energy insecurity. This move protects purchasing power where it matters most: essential heat.
  

• Harder introduces bill to limit PG&E rate hikes to once per year

  What happened: Pacific Gas & Electric raised rates six times last year and continues pushing for more increases, driving the average household bill to around $300 monthly, a 67% jump since 2020 (from $179). Rep. Josh Harder introduced the Stop the Rate Hikes Act, which would limit utilities to one rate increase annually and restrict them to a single request per year. The bill faces long odds in a divided Congress.

  Why it matters: Nearly $300 monthly for basic utilities strains family finances, especially alongside rising housing and food costs. Frequent rate hikes prevent effective budgeting and financial planning. Energy prices are becoming a growing concern, and bills like this allow Democrats to be the party of cutting electricity costs and cheap energy!

New Anti–CoLA Developments

• Inflation Ticks Up in August, Led by Tariffs and Pricey Essentials

  What happened: Consumer prices rose 2.9% year-over-year in August, up from 2.7% in July. Tariffs pushed up import costs, with items like coffee (+21%) and furniture (+4.7%) climbing, while food prices rose 3.2%. Electricity costs also jumped more than 6% from last year.

  Why it matters: Even modest upticks in inflation mean households’ everyday expenses keep outpacing income growth. Essentials like food, furniture, and energy eating into paychecks leave families with less room for savings or discretionary spending. Increase in energy prices comes as the Trump administration has been working to halt solar and wind projects, limiting cheaper clean-energy alternatives.

• U.S. Job Growth Stalls, Unemployment at Four-Year High
  What happened: The August jobs report painted a troubling picture of the labor market. Employers added just 22,000 jobs nationwide, far below expectations, and the unemployment rate rose to 4.3%, its highest level since 2021. On top of that, government revisions showed June had actually suffered a net loss of 13,000 jobs — the first monthly decline in over four years. Industries that had been steady employers, like retail and hospitality, saw flat or negative growth, while manufacturing continued to struggle under higher input costs and tariffs. Wage growth slowed as well, with average hourly earnings rising only modestly.
  Why it matters: Fewer job openings mean tougher competition for positions and less leverage for higher wages. Rising unemployment raises the risk of layoffs or reduced hours, especially in retail, hospitality, and manufacturing. Stagnant wages, paired with rising prices for essentials like groceries, housing, and healthcare, create a double bind. Chaotic and uncertain economic policy makes it harder for businesses to plan or hire, slowing job creation.

• Manufacturers Expect Price Hikes Due to Tariff-Pushed Input Costs
  What happened: In an August survey, manufacturers in the Philadelphia Fed region reported sharp increases in material costs—the highest since May 2022—and expect to raise prices by 4.1%, even as wage growth lags at 3.5%. Escalating input costs, driven by tariffs, are getting passed onto consumers.
  Why it matters: This widening gap between input cost increases and slow wage growth reduces purchasing power, squeezing both workers and consumers alike.

• New Tariffs Trigger Steep Coffee Price Spikes (Mid-August Reports)
  What happened: U.S. coffee shops are warning of rising prices due to 50% tariffs on Brazilian coffee imports. Consumers are already paying 14.5% more for coffee over the past year, with further hikes expected following the tariff.
  Why it matters: Coffee is a daily staple for many Americans. This tariff-driven pricing hits both businesses and consumers, eroding discretionary income and threatening small, local vendors. We shouldn't have to pay more for our daily cup of coffee!

• PS5 Price Hike Cites Tariff Challenges
  What happened: Sony has raised U.S. PlayStation 5 prices by $50 per unit, attributing the increase to “a challenging economic environment,” including tariffs on imported electronics.
  Why it matters: Higher prices on consumer electronics, especially in entertainment, reduce household discretionary spending and contribute to broader inflationary expectations. Tariffs are starting to impact our hobbies, and while these remain secondary to essentials, they are still an important part of daily life!
  

  That’s all for this week. We will see you again in two weeks for new updates!