SACRAMENTO, Calif. — Governor Gavin Newsom of California has formally requested nearly $40 billion in federal aid to assist in the recovery efforts for the Los Angeles region following the severe wildfires that raged in January. He indicated that these fires could potentially be the most expensive natural disaster in the history of the United States.
In a letter sent to Congress on Friday, Newsom sought assistance from key lawmakers, including House Speaker Mike Johnson and Rep. Tom Cole, who chairs the House Appropriations Committee. He emphasized the importance of federal support for Los Angeles, stating that this economically significant area can only thrive again with governmental assistance in the wake of such an extraordinary disaster.
The economic damages from the firestorm are estimated to exceed $250 billion, with real estate losses from the unprecedented Palisades and Eaton fires projected to reach upwards of $30 billion, as reported by a recent analysis. The destruction extended to more than 16,200 buildings as flames swept through Pacific Palisades, Malibu, Pasadena, and Altadena.
Newsom committed that any funding received would be allocated towards reconstructing homes, vital infrastructure, local businesses, educational institutions, places of worship, and healthcare facilities, along with providing necessary aid for those impacted by the disaster.
In his letter, he assured that Los Angeles would utilize the resources prudently. His primary funding request calls for $16.8 billion from the Federal Emergency Management Agency, predominantly aimed at rebuilding and infrastructure needs, while also setting aside $5 billion for debris removal efforts.
Additionally, he requested $9.9 billion from the Department of Housing and Urban Development to offer grants to victims of the fires, homeowners, businesses, and renters, along with $5.29 billion from the Small Business Administration for loans intended for homeowners and businesses.
Newsom expressed gratitude to President Trump for expediting debris removal processes following the disaster. However, the letter did not address the recent warnings indicating that federal assistance might come with certain conditions attached.
“We are eternally grateful,” Newsom expressed in the correspondence. Despite having faced criticism from Trump over various issues, including water policy, support from his administration for disaster recovery could play a critical role in future assistance.
Ric Grenell, a Trump ally and envoy for special missions, mentioned that there might be “conditions” tied to any federal aid provided to California. One of the potential stipulations being discussed includes withholding funding from the California Coastal Commission, which oversees coastal development and protects public access to beaches. Trump has criticized this agency for being overly bureaucratic and a barrier to swift rebuilding efforts.
