Future Legal Developments: Proposed Laws and Regulatory Changes in 2025-2026

By 2025, legal changes aren’t just happening-they’re accelerating. Across the U.S., state and federal governments are rewriting rules at a pace not seen in decades. You can’t ignore this anymore. Whether you’re an employer, a small business owner, a taxpayer, or someone simply trying to understand your rights, the laws around you have shifted-dramatically. And it’s only getting faster.

Employment Law Is Now a Full-Time Job

California led the charge in 2025 with more than a dozen major labor law updates. The most impactful? Assembly Bill 406, which took effect October 1, 2025. It didn’t just tweak one rule-it merged three separate leave laws into one. Now, victims of domestic violence, sexual assault, or stalking can take paid time off under the Fair Employment and Housing Act (FEHA). Employers must update their handbooks, retrain HR staff, and post new notices. The Civil Rights Department released a revised model notice just weeks after the law passed. Missing that notice? You’re now at risk of a fine.

Then there’s the change to paid sick leave. Under AB 406, employees can now accrue up to 48 hours of paid sick time per year-up from 40. And it’s not just for illness. You can use it to care for a sibling, a grandparent, or even a close friend if your employer recognizes that relationship as family. That’s a new definition of "family" in the law. Companies with 100+ employees report spending an average of $1,500 per worker to train staff on these changes.

And it’s not just California. In 2025, 37 out of 50 states passed new employment laws. Some raised minimum wages. Others cracked down on wage theft. A few states, like New York and Illinois, now require employers to prove they didn’t retaliate if an employee files a complaint. The National Conference of State Legislatures says this is the highest number of employment law changes in a single year since records began.

The Tax Code Got a Major Rewrite

If you thought the tax code was complicated before, wait until you see what happened in July 2025. Public Law 119-21, nicknamed the "One, Big, Beautiful Bill," became law on July 4. It didn’t just add a few lines-it rewrote how millions of Americans file their taxes.

First, there’s the new $6,000 deduction for people aged 65 and older. It’s automatic. No itemizing. Just file your Form 1040 and claim it. The IRS released guidance in October 2025 (IR-2025-107) to make sure everyone knows how to use it. But here’s the catch: if you’re still working, your earned income over $50,000 phases out this deduction. That’s not in the law’s headline, but it’s in the fine print.

Then came the 1099-K change. Remember when the IRS tried to force app-based workers to report every $600 in income? That rule died. The new law rolled it back to $20,000 in gross payments and 200 transactions. So if you drive for a rideshare app or sell handmade goods online, you’re now safe from reporting unless you hit that higher threshold. The IRS even updated its FAQ page to reflect this.

And don’t forget the Employee Retention Credit (ERC). The bill clarified who can still claim it. Many businesses that thought they missed the deadline now have until December 31, 2026, to file amended returns. The American Institute of Professional Bookkeepers saw a 40% spike in tax update courses last fall. Why? Because every accountant had to relearn half their job.

Housing Rules Got a Complete Overhaul

California’s housing crisis got a radical fix. In June 2025, Governor Gavin Newsom signed Assembly Bill 130 and S.B. 131 into law. These bills didn’t just tweak the rules-they blew up the old system.

For decades, the California Environmental Quality Act (CEQA) made it nearly impossible to build affordable housing. Developers spent years in legal reviews, public hearings, and delays. Now, for qualifying projects-like housing near transit hubs, or projects that include 100% affordable units-CEQA reviews are cut from 24 months to under 6. The California Building Industry Association says this could slash approval times by 18 to 24 months. That’s not a small change. That’s a revolution.

And it’s working. State data shows housing permits jumped 17% in the first six months after the law passed. Developers are now moving faster. Cities like San Diego and Oakland are fast-tracking projects that would’ve taken years to clear before. The goal? Add 300,000 new units by 2030. Whether that’s realistic is debatable. But the momentum is real.

Firearms Rules Got Broader-And Simpler

The LEOSA Reform Act of 2025 (H.R.2243) passed the House in May and sits in the Senate. If it becomes law, it will change how retired and active law enforcement officers carry guns across state lines.

Before this bill, officers could carry concealed weapons under federal law-but only if they met strict training standards and couldn’t carry in places like schools or national parks. Now? They can carry in all public spaces, including school zones and federal buildings. States can’t ban it. They can only lower the required training frequency. So if your state used to require annual qualification, it can now drop to every three years.

This isn’t just about police. It’s about 800,000 retired officers who’ve spent their careers serving. For them, this law means they can travel without worrying about state-by-state gun laws. It’s a rare moment of bipartisan agreement. The NRA and the International Association of Chiefs of Police both support it.

The Supreme Court Is Rewriting the Rules

The Roberts Court turns 20 in 2025. And it’s not celebrating-it’s redefining power.

Legal analysts from American Progress warn that the Court’s 2025-2026 term could be the most consequential in a generation. Three major cases are pending: one on presidential immunity, one on federal agency power, and one on state authority to regulate online platforms. All three could shift power away from Congress and toward the White House.

Law firms are already shifting resources. Bloomberg Law reports that corporate legal departments increased their constitutional law teams by 25% in 2025. Why? Because if the Court rules that federal agencies can’t enforce rules without explicit congressional approval, it could unravel dozens of regulations overnight-from environmental standards to workplace safety rules.

What This Means for You

You don’t need to be a lawyer to understand this: compliance is no longer a once-a-year task. It’s a daily rhythm.

Employers are hiring compliance officers at record rates. Tax professionals are taking 30-hour courses just to stay current. Housing developers are rewriting contracts. And individuals? They’re finally realizing that laws aren’t static. They change. Fast.

Here’s what you should do right now:

• If you’re an employer: Review your employee handbook. Update your leave policies. Train your HR team.
• If you’re self-employed: Check if you qualify for the $6,000 tax deduction. Review your 1099-K reporting threshold.
• If you’re a landlord or developer: Look into California’s CEQA exemptions. You might be able to cut approval time by over a year.
• If you’re a retiree: Claim that $6,000 deduction. It’s free money.
• If you’re a citizen: Pay attention to Supreme Court decisions. They’ll affect your rights more than any new state law.

RegTech software sales are up 35% this year. Companies like LogicGate and Compliancy Group are seeing 50% growth. Why? Because humans can’t keep up. Machines can. If you’re running a business, you’re already behind if you haven’t started using automated compliance tools. Deloitte says 78% of Fortune 500 companies will have AI-powered regulatory monitors by 2026. You don’t need to be a Fortune 500 company to benefit. Tools exist for small businesses too.

The future of law isn’t in courtrooms anymore. It’s in spreadsheets, software updates, and HR trainings. The rules are changing. Are you changing with them?