Matt Mahan, a gubernatorial candidate and current mayor of San Jose, California’s largest city, argues that the state’s affordability crisis stems from a failure in governance. At 43, Mahan stands out as the sole millennial in the Democratic primary. During a recent briefing on May 7, he emphasized his commitment to immigration reform, housing regulation overhauls, and the establishment of a state prosperity fund financed by taxes from tech companies.
With nearly 1 million residents, San Jose ranks as the largest city in Northern California and the 12th largest in the nation. Notably diverse, about 42% of its population is foreign-born—nearly triple the national average.
Understanding California’s Housing Crisis
The housing situation at the state level paints a different picture. For the first time, California lost a House seat, a development Mahan attributes to insufficient housing construction. He remarked on personal losses, stating, “Both of my sisters moved out of state,” reflecting a broader trend of friends and families leaving the region. He identified the roots of the housing shortage in decades of regulatory buildup, highlighting the constraints posed by construction liability lawsuits that hinder the condominium market.
According to Mahan, California’s construction defect standards present a significant barrier, enabling lawsuits against developers up to a decade after a project’s completion. This legal landscape, he explains, makes it nearly impossible to secure financing for new condominium developments, contributing to a homeownership rate that is 10 percentage points lower than the national average—among the lowest in the U.S. He emphasized that these issues are solvable and stem from specific policy failures.
Under Mahan’s leadership, San Jose has made strides in reducing homelessness by one-third and has simplified the permitting and design approval processes. In 2025 alone, the city launched over 2,000 housing units and reduced expenses related to affordable housing development, traffic impacts, and park fees—all seen as challenges to increasing supply. He asserts that his housing plan is the most comprehensive in the gubernatorial race, with a goal of replicating this focus in the state capital.
Reforming Immigration Policy
On the topic of immigration, Mahan stops short of supporting the abolition of Immigration and Customs Enforcement (ICE), a stance taken by some of his gubernatorial rivals. Instead, he calls for fundamental reforms within the agency. He explained that the demand for reform often serves as a symbolic statement, emphasizing the need to recognize the humanity of all individuals in the country.
Mahan advocates for establishing a path to “permanent legal status and ideally citizenship” for undocumented individuals already in the U.S., alongside strengthening the legal immigration framework and enhancing border security. He pointed out that both political parties have historically sought to maintain a low-wage workforce, leading to a porous border and a politicization of immigration status. Drawing from his upbringing in Watsonville, a small town with a significant undocumented immigrant population, he expressed urgency for substantial federal immigration reform.
Addressing Healthcare Gaps
In healthcare, Mahan recognizes the challenge posed by recent federal spending cuts. He noted that San Jose is collaborating with Santa Clara County on a five-year sales tax initiative to mitigate some financial losses but views this as just a temporary solution. “We need to utilize state and local funds to close the gap as much as possible,” he stated. To combat rising administrative costs—accounting for up to 30% of California’s healthcare expenditures—he proposed allowing out-of-state telehealth providers to practice in California, expanding nurse-staffed rural clinics, and leveraging loan forgiveness to attract healthcare workers to underserved areas.
Silicon Valley, AI, and Workforce Development
When discussing artificial intelligence and the potential for job displacement, Mahan acknowledges the need for taxing tech companies cautiously to avoid driving them out of the state. He draws historical comparisons, citing the significant job losses during the advent of tractors in agriculture and automation in manufacturing, emphasizing that preparation for the changing workforce is crucial.
He proposed a “Shared Prosperity Fund” to allocate tax revenue from technology infrastructure towards workforce development and reskilling initiatives. He warned of possible future employment challenges and the need for innovative solutions, like universal basic income, to support workers through transitions. San Jose has already built a government AI coalition utilized by over 900 cities across the U.S. and internationally, focusing on ethical AI use while training employees to adapt to new technologies.
Mahan addressed concerns surrounding technology influence, asserting that he has developed the most robust AI regulatory framework among gubernatorial candidates. He dismissed accusations of being tied to Silicon Valley interests, stating, “San Jose is not Palo Alto or Menlo Park.” As of 2024, the city’s median household income stands at $148,226, slightly below Santa Clara County’s median of $164,281.
He emphasized that certain tech industry leaders back his campaign due to the tangible results achieved in areas like housing and crime reduction. Mahan reiterated that he aims to work against the rise of populism from both ends of the political spectrum, stating, “I believe the best defense against authoritarianism is effective governance that serves the people.”
