Business leaders from across the region gathered on April 13 for the Southwest California Legislative Council meeting at Southwest Riverside County Association of Realtors to discuss a wide range of federal and state issues that could significantly affect local employers, operating costs, and future business growth.

At the federal level, Jennings Imel of the U.S. Chamber of Commerce provided an update on the nearly two-month partial federal government shutdown involving the Department of Homeland Security. Congressional leaders continue to debate funding approaches, while several major issues remain on the federal agenda, including the SAVE Act, FISA reauthorization, appropriations deadlines, and surface transportation funding. The current DHS shutdown has become one of the longest on record, creating continued uncertainty for businesses that rely on federal permitting, trade, immigration processing, and infrastructure funding.

A major topic of discussion was the continued instability surrounding the Strait of Hormuz and its direct impact on energy prices. Approximately 20 percent of the world’s oil supply moves through the region, and continued disruptions have contributed to sharp increases in fuel costs, freight expenses, and overall inflation. Attendees discussed how rising diesel and gasoline prices are placing additional strain on local businesses, especially those in logistics, manufacturing, agriculture, and construction.

Business confidence also remains challenged. Recent surveys show historically low levels of optimism, investment, and hiring among small businesses, with inflation and the rising cost of doing business remaining the top concerns. Only about 30% of businesses plan to hire or invest during the second quarter of 2026, reflecting ongoing uncertainty in both the economy and the regulatory environment.

On the trade front, attendees reviewed recent court decisions involving tariffs and discussed the potential financial impact on importers, manufacturers, and supply chains. Businesses are awaiting potential tariff refunds after courts ruled certain import tariffs unconstitutional, while new federal proposals could still result in additional costs on products ranging from pharmaceuticals to steel and copper. Click here for the Tariff Refunds Guide and FAQ. 

Permitting reform was also highlighted as a top priority for the business community. The U.S. Chamber of Commerce continues to advocate for streamlining federal environmental review processes, noting that some major infrastructure and energy projects can take more than seven years to receive approval. Local leaders emphasized that delays in permitting affect everything from transportation and water infrastructure to private commercial development. The proposed SPEED Act is intended to reduce delays, shorten litigation timelines, and move projects forward more efficiently.

At the state level, legislative advocates reviewed several key California bills that could affect employers. One of the most closely watched measures was AB 1776, which would significantly expand California antitrust law and could expose businesses of all sizes to additional litigation over common business practices such as pricing, supplier agreements, and customer reward programs. Business groups have argued that the bill would create uncertainty and increase legal costs for employers across the state.

The council also took positions on several other bills, including opposition to AB 1777, which would expand state authority over warehouse, airport, and port emissions; AB 1790, which would expand California’s corporate tax base; and SB 1359, which would begin phasing out gas infrastructure and could increase costs for restaurants, manufacturers, and other small businesses.

Support was expressed for measures focused on improving housing flexibility, reducing delays in commercial building permits, protecting water infrastructure, and strengthening financial literacy requirements for students. Water reliability remained a major concern throughout the discussion, particularly as it relates to the Delta, Sites Reservoir, and long-term infrastructure investments that support both residents and businesses.

The meeting reinforced the importance of business advocacy at every level of government. With major decisions pending in Washington and Sacramento, local employers were encouraged to remain engaged, share their concerns with policymakers, and participate in upcoming advocacy efforts, including the council’s June advocacy trip to Sacramento.