Gov. Gavin Newsom is asking Congress to approve an additional $39.7 billion in aid to help Los Angeles recover from the catastrophic damage wreaked by the January firestorm, which he warns could become the costliest natural disaster in U.S. history.
Newsom sent a letter Friday addressed to House Speaker Mike Johnson (R-La.); House Minority Leader Hakeem Jeffries (D-N.Y.); Rep. Tom Cole (R-Okla.), the House Appropriations Committee chair; and Rep. Rosa DeLauro of Connecticut, the lead Democrat on that committee, asking for their 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,” Newsom wrote.
Estimates of the total economic loss from the firestorm have swelled to more than $250 billion — with real estate losses from the Palisades and Eaton fires predicted to potentially top $30 billion, according to a Times analysis. A total of 16,251 structures were destroyed as the fires tore through a combined 37,400 acres of Pacific Palisades, Malibu, Pasadena and Altadena.
Newsom’s letter outlines how the requested funding would be used to rebuild homes, infrastructure, business, schools, churches and healthcare facilities, while supporting the needs of residents, workers and children affected by the devastating fires.
“Make no mistake, Los Angeles will use this money wisely,” Newsom wrote.
His largest request is for an additional $16.8 billion from the Federal Emergency Management Agency, most intended to rebuild property and infrastructure, with $5 billion earmarked for debris cleanup.
Newsom also requested $9.9 billion from the Department of Housing and Urban Development for grants to fire victims, homeowners, renters and businesses; as well as $5.29 billion from the Small Business Administration for homeowner and business loans. He requested $4.32 billion in recovery grants for local governments from the Economic Development Administration and $2 billion in low-income housing tax credits from the Internal Revenue Service.
The letter does not wade into the dispute over the Trump administration’s threat to impose conditions on federal aid. Instead, it thanks President Trump and his administration’s support for fast-tracking fire debris removal and offering an all-hands-on-deck approach to recovery.
“We are eternally grateful,” Newsom wrote. “And we are confident that if we work together, Los Angeles will continue to serve as a beacon to the world and securely place the city on solid ground in the coming years as it hosts the FIFA World Cup and Olympics — and thrive for the century to come.”
Whether or not these requests get approved will hinge on the willingness of Republican lawmakers to allocate funding at a time when the administration is focused on slashing spending, and on the willingness of Democratic lawmakers to accept any conditions that might come with it.
Some Republicans have suggested linking aid to certain policy changes at the state level, such as altering California’s water policy or imposing new voter ID requirements. In the past, Trump has threatened to withhold federal funding to states that did not support his agenda. He is a frequent critic of Newsom and California’s water policies.
Ric Grenell, a longtime Trump ally serving as his presidential envoy for special missions, said Friday that “there will be conditions” to the coming aid.
One of the possible conditions being discussed, he said, was defunding the California Coastal Commission — the agency that regulates coastal development and protects public beach access. Trump has criticized it as an overly restrictive bureaucratic agency that stands in the way of timely rebuilding efforts.
“I think squeezing their federal funds, making sure they don’t get funds, putting strings on them to get rid of the California Coastal Commission is going to make California better,” Grenell said at the Conservative Political Action Conference outside Washington.
Newsom’s request to Congress also includes:
- $432 million to rebuild and repair water infrastructure
- $350 million for wildfire resilience efforts on federal lands
- $101 million for transportation infrastructure
- $36 million for low-income home energy assistance
- $51 million for loss of jobs and displaced workers
- $13 million in community service block grant funding
- $5 million for brownfield cleanup
- $2.5 million for vulnerable children and foster youth
- $2 million for air quality monitoring
He is also asking the Small Business Administration to raise its maximum loan limit for home reconstruction from $500,000 to $2 million.
Rep. Brad Sherman (D-Sherman Oaks), who represents Pacific Palisades, applauded Newsom’s requests and thanked him for advocating to raise this limit.
“This current limit is woefully inadequate to rebuild an uninsured home in the Pacific Palisades,” he said in a statement. “A majority of my constituents that responded to a survey question indicated that their top federal priority was raising the SBA home disaster loan limit as Los Angeles rebuilds.”
