Senator Suzette Martinez Valladares (R-Santa Clarita) has announced her affordability legislative package to bring meaningful relief for California families and small businesses struggling due to inflation and increased fees and taxes.

“With the highest cost of living in the nation, Californians are working harder than ever, yet falling further behind,” said Valladares. “This package is about lowering costs, increasing transparency and putting money back in the pockets of those who earn it.”

Affordability Legislative Package

SB 1161 — California Air Resources Board (CARB) Transparency and Accountability

SB 1161 strengthens transparency and accountability for regulations put forward by CARB. The bill requires that CARB provide analysis of how proposed regulations would affect Californians, before the regulations are implemented. Under the new law, CARB would need to produce an economic impact assessment as to whether proposed rules would increase costs for: Low- and middle-income households, small businesses and disadvantaged communities.

If a proposed regulation would raise costs for low- and medium-income households or disadvantaged communities beyond typical cost increases, the appropriate committees of the Legislature would need to hold a public hearing before the regulation could be implemented.

“We need to know how new policies would impact every day Californians before they go into effect,” Valladares said. “This bill brings transparency to proposed major regulations. Californians should be given a clear explanation, and lawmakers should have an opportunity to review the real-world impacts of proposed new regulations before they go into effect.”

SB 1144 — Increase the State Dependent Tax Credit

SB 1144 increases the state dependent tax credit to $700 per dependent beginning with the 2026 taxable year and sunsets after five years.

The current dependent tax credit was established in 1999 and is $475 for the 2025 taxable year after inflation adjustments.

“Raising a child in California is significantly more expensive than in other states,” said Valladares. “Housing, childcare, healthcare and education costs continue to climb. Increasing the dependent tax credit would provide real relief for working families who need it the most.”

The temporary five-year increase ensures immediate relief while allowing the Legislature to evaluate long-term fiscal impacts.

SB 1137 — State Medical Expense Deduction

SB 1137 lowers the current medical expense deduction threshold from 7.5 percent of adjusted gross income to 4 percent, expanding access to tax relief for Californians facing significant out-of-pocket health care costs.

“For many California families, one illness or ongoing medical condition can seriously threaten their finances,” Sen. Valladares said. “This bill recognizes that medical expenses are not discretionary spending, they are a necessary cost of living.”

These measures aim to address structural cost drivers while delivering direct financial relief for California families.

“This package reflects a simple principle: government should not make life more expensive without accountability and it should not ignore the financial realities facing working families,” Valladares said. “We can protect our environment, support public health, and uphold strong public policy while also being transparent and mindful of cost impacts.”

Each of these bills will next be heard in policy committees.