June 26, 2026
The Orange County Business Council (OCBC) opposed budget control language included in AB 109 (Gabriel), which has now been enrolled, restricting the use of certain state funding for automated cargo handling equipment and related infrastructure investments.
Throughout the budget process, OCBC joined a coalition of business and industry stakeholders in urging lawmakers to remove the language, citing concerns that it creates significant uncertainty for planned infrastructure projects at the Ports of Los Angeles and Long Beach and could jeopardize approximately $10 billion in public and private investment supporting California jobs, trade and economic growth.
The enacted language prohibits a variety of state funding sources from being allocated toward fully automated cargo handling equipment or infrastructure used to support automated cargo handling operations. OCBC and coalition partners expressed concerns that the provision is overly broad and could affect a wide range of infrastructure investments, including transportation improvements, electrical systems, security infrastructure and other projects necessary to maintain efficient port operations.
OCBC opposed the provision because California’s ports serve as critical gateways for international commerce and are essential components of the state’s supply chain network. Continued investment in port modernization and infrastructure improvements is necessary to maintain competitiveness, improve operational efficiency, support environmental objectives and ensure the reliable movement of goods throughout the region.
California’s economic success depends on policies that encourage innovation, infrastructure investment and supply chain resiliency. Restrictions that create uncertainty for major infrastructure projects risk delaying investment, slowing project delivery and undermining the state’s position as a global trade leader.
OCBC appreciates the leadership of coalition partners throughout the budget process and will continue advocating for policies that support California’s ports, goods movement system and long-term economic competitiveness.
For questions, please email Amanda Walsh, Vice President of Government Affairs.
