In the aftermath of January’s catastrophic wildfires, California Governor Gavin Newsom has formally requested nearly $40 billion from Congress to aid recovery efforts in the Los Angeles region. This disaster, which has already been labeled potentially the costliest natural calamity in U.S. history, has wreaked havoc across several communities, raising the stakes for federal assistance.
In a letter sent Friday to key Congressional leaders, including House Speaker Mike Johnson and House Appropriations Committee Chair Tom Cole, Newsom emphasized the critical need for federal support. “Los Angeles is one of the most economically productive places on the globe, but it can only rebound and flourish with support from the federal government as it recovers from this unprecedented disaster,” he stated.
The fires have caused an astonishing estimated economic loss of more than $250 billion. An analysis by the Los Angeles Times indicates that damages related to the Palisades and Eaton fires alone may exceed $30 billion, with over 16,200 structures lost in the flames. Areas such as Pacific Palisades, Malibu, Pasadena, and Altadena have been particularly hard-hit.
The funding requested by Newsom is aimed at a comprehensive recovery plan, including rebuilding homes, infrastructure, businesses, schools, churches, and health care facilities, alongside essential support for displaced residents. “Make no mistake, Los Angeles will use this money wisely,” Newsom assured.
Among the significant components of his request is a bid for an additional $16.8 billion from the Federal Emergency Management Agency (FEMA) dedicated primarily to property and infrastructure rebuilding, with $5 billion specifically set aside for debris cleanup. In addition, Newsom is seeking $9.9 billion from the Department of Housing and Urban Development to provide grants to fire victims, homeowners, businesses, and renters. He further requested $5.29 billion from the Small Business Administration for loans to affected businesses and homeowners.
Governor Newsom also thanked President Donald Trump for expediting debris removal efforts. While the letter did not directly address comments from the Trump administration regarding potential conditions on federal aid, Newsom stressed the importance of swift support. Trump has been known to criticize Newsom and California’s water policies, and his aide, Ric Grenell, hinted that any federal assistance might come with stipulations, including potential cuts to the California Coastal Commission, which oversees coastal development practices.
