California Governor Gavin Newsom has formally requested nearly $40 billion in federal aid to assist Los Angeles in recovering from the devastating wildfires that swept through the region in January, which he warned could become the most expensive natural disaster in U.S. history.
In a letter sent Friday to congressional leaders, including House Speaker Mike Johnson (R-La.) and House Appropriations Committee Chair Tom Cole (R-Okla.), Newsom emphasized the need for urgent federal assistance.
“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.
Historic Damage and Economic Impact
The total economic losses from the wildfires, including the Palisades and Eaton fires, are projected to exceed $250 billion, with real estate damages alone estimated at over $30 billion, according to a Los Angeles Times analysis. The fires destroyed more than 16,200 structures across Pacific Palisades, Malibu, Pasadena, and Altadena.
Newsom outlined plans to use the requested funds for rebuilding homes, infrastructure, businesses, schools, churches, and health care facilities, while also providing direct assistance to those affected.
Breakdown of Federal Aid Request
- $16.8 billion from the Federal Emergency Management Agency (FEMA), primarily for property and infrastructure rebuilding, with $5 billion allocated for debris removal.
- $9.9 billion from the Department of Housing and Urban Development (HUD) to provide grants for fire victims, homeowners, businesses, and renters.
- $5.29 billion from the Small Business Administration (SBA) for homeowner and business loans.
Federal Response and Political Tensions
Newsom thanked President Donald Trump for expediting debris removal efforts but did not address the administration’s recent warnings that federal aid could come with conditions.
“We are eternally grateful,” Newsom wrote.
Trump, who has previously criticized California’s wildfire management and water policies, has hinted that federal relief may be contingent on changes to state regulations. Richard Grenell, Trump’s special envoy for disaster response, indicated Friday that potential conditions could include defunding the California Coastal Commission, which oversees coastal development and public beach access.
“There will be conditions,” Grenell stated, echoing the Trump administration’s stance that California’s regulatory agencies have slowed rebuilding efforts.
As negotiations over wildfire relief continue, state and federal leaders remain at odds over policy decisions that could shape California’s long-term recovery efforts.
