Hollywood veteran Jane Fonda and Wendy Schmidt, the wife of billionaire former Google chief Eric Schmidt, are joining forces against a closely watched California ballot proposal aimed at easing the state’s housing affordability crisis.
Fonda and Schmidt, a prominent environmental philanthropist who owns a sprawling $100 million Los Angeles estate, are opposing Prop. 45, a measure that would scale back parts of the California Environmental Quality Act. The 1970s-era law has long been criticized by developers and housing advocates who say it can delay or derail badly needed construction.
The “No on 45” campaign is set to launch Wednesday in Sacramento.
CEQA gives opponents the ability to challenge major projects on environmental grounds, a process that can affect not only housing developments but also mass transit, infrastructure and other large-scale construction efforts.
Prop. 45 has drawn unusual bipartisan backing as frustration grows over California’s complex permitting and regulatory hurdles. A Public Policy Institute of California poll found 73% of voters support the measure, including 80% of Democrats and 61% of Republicans.
Fonda and Schmidt are leading the opposition effort through Clean and Healthy California, an environmental political action committee seeded with more than $5 million from Schmidt.
Schmidt, 71, purchased the 100-plus-room Spelling estate, known as The Manor, in Holmby Hills in 2025.
The PAC, which has also received support from Laurene Powell Jobs and venture capitalist John Doerr for efforts opposing oil drilling in California, has emerged as a central force against Prop. 45. It is joined by the progressive Building and Construction Trades Council.
Proponents say it will make housing more affordable, arguing CEQA delays add building costs that are passed on to renters and homebuyers.
Fonda, the 88-year-old “Barbarella” actress turned left-wing activist who lives in a $6 million Century City home, has blasted Prop. 45 campaign as a plot by polluters to destroy the environment.
“This measure would gut the law that stands between reckless development and the air we breathe, the water we drink, and the health of our communities,” said Fonda in a June statement.
“Our coalition is united and prepared to win this fight.”
Prop. 45 would set limits on environmental reviews of housing, infrastructure, water, healthcare and clean energy projects, limiting court-imposed delays to important developments.
CEQA was first enacted by governor Ronald Reagan in the 1970s to protect California’s unique environment, but critics point it’s since now used NIMBYs to tie up projects in court, leading to roadblock in getting new housing built.
Democratic Assemblymember Buffy Wicks, a Prop. 45 supporter, has previously pointed out an eye-popping example — alleging a solar company “spent 12 years, preparing a 1,100-page environmental review and getting 72 permits from 28 different agencies, to build one transmission line.”
The prop’s biggest supporters include the California Chamber of Commerce and Building a Better California, a political committee backed by Google co-founder Sergey Brin, which contributed $10 million to the campaign.
On the “no” side are Clean and Healthy California, which has contributed $7 million since June; and the Building and Construction Trades Council, which has kicked in more than $1 million across two associated committees.
“It is hypocritical that some of these people are really, really wealthy and have their own palaces secured but don’t want housing for anyone else,” said Matthew Fleming, a fellow at Pacific Research Institute.
Fleming argued that many labor unions have historically relied on CEQA lawsuits as leverage to extract concessions on projects.
“[Prop. 45] is a pretty modest reform to CEQA, and it may or may not be perfect, but it’s not surprising these environmental groups and labor unions are opposing it,” he added.
“They’ve opposed CEQA reform at all turns, nor have they provided any solution to the housing crisis.”
Gov. Gavin Newsom has signed bills in recent years to exempt certain projects, such as urban infill developments, from lengthy CEQA reviews.
But so far, such reforms have done little for housing affordability.
California is No. 1 in rental costs, with renters needing to earn $52.79 per hour to afford a typical two-bedroom home costing $2,745 per month, according to the National Low Income Housing Coalition.
Median home prices hit a record high of $930,000 in May, according to the National Association of Realtors.
The No on Prop. 45 campaign pushed back on criticism in a statement.
“This isn’t about affordable housing, and Californians are smart enough to see through that,” a spokesperson said in an email.
“The No on 45 coalition is massive, with over 270 organizations including working families, environmental justice groups, nurses, doctors and the California Democratic Party who all oppose the corporate-backed Polluting Projects Proposition because it limits environmental and public review to fast-track projects like data centers that decimate the health and safety of our communities,” the campaign said.
