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A slate of new state and federal laws took effect Wednesday, including an increase in California’s gas tax and other laws that impact how you repay student loans and the way your groceries are labeled.
July 1 is one of the most common dates for new state laws to take effect in California. Lawmakers are expected to roll out more laws that take effect Jan. 1, 2026, but here’s a breakdown of what’s changing for now:
Gas tax increase
California’s gas tax has now increased by 2.2 cents per gallon in accordance with SB 1, the Road Repair and Accountability Act of 2017, a state law that mandates an annual inflation adjustment.
The increase will raise California’s gas tax to about 63 cents per gallon.
A 2.2-cent increase in California’s gas tax is set to take effect Wednesday, amid a nationwide trend in decreasing gas prices that spiked after the outbreak of the U.S. war with Iran.
California bans ‘sell by’ food labels
California is aiming to cut down on confusion among shoppers who may be unsure whether food is past its peak quality or unsafe to eat – and the food waste it creates when people throw away food early – with a new food labeling law starting Wednesday.
It bans the use of “sell by” labels on food packaging, which experts say act as a guide for retailers on how long to display products on the shelves but are not an indicator of whether they are still safe to consume. Now, manufacturers selling food in California must use two standardized labels – a “Best if Used By” label for peak quality and “Use By” label for product safety.
Food manufacturers can choose to use either label or both, said Democratic Assemblymember Jacqui Irwin, the author of the bill.
California became the first state in the U.S. to standardize food labels when it approved the law in 2024 that seeks to reduce food waste and the state’s climate-warming emissions.
Major student loan changes
On the federal level, changes to the student loan system means some Americans — especially lower-income borrowers — will face higher monthly payments on their student loans. Other borrowers will face new limits on loans.
The major overhaul of the system is part of provisions within President Donald Trump’s signature tax law — the Working Families Tax Cuts Act — that passed last year, along with other executive orders targeting the Department of Education.
Streaming ad volume restrictions
If you stream movies or TV, here’s some good news.
Commercials can no longer be louder than the programming you’re watching. The new law extends rules that already apply to tradtional TV to streaming platforms.
Driverless car communication
Even driverless cars are getting new rules.
Autonomous vehicles must now have a way for first responders to communicate with a remote operator, who must be in the U.S. and have a valid driver’s license.
The Associated Press and News contributed to this report.
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