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California Governor Gavin Newsom has formally requested nearly $40 billion in federal aid to assist Los Angeles in recovering from the devastating wildfires that ravaged the region in January.
The governor’s office released a detailed breakdown of the supplemental funding request, warning that the disaster could become the costliest natural disaster in U.S. history.
“The firestorms that tore through two unique and vibrant Los Angeles communities could easily become the costliest natural disaster in United States history,” Newsom stated in the funding request. “Fully recovering from the devastation will require California and the nation to prudently and thoughtfully support the rebuilding of the area’s homes, businesses, churches, schools, and vital infrastructure.”
The governor emphasized California’s significant contribution to the national economy, highlighting its status as the fifth-largest economy in the world and its leading role in federal tax contributions. He stressed that federal support is crucial for Los Angeles to rebound and flourish.
The request outlines a comprehensive $40 billion recovery plan addressing business, community, and workforce needs, as well as wildfire resilience measures. Key components include $5.29 billion for Small Business Administration disaster loan assistance and $4.32 billion for Economic Development Administration business grants to support business recovery. Tax-incentivized recovery efforts include $2 billion for Low-Income Housing Tax Credits and targeted tax relief for individuals and businesses.
Community and private property recovery funding includes $16.8 billion for FEMA public assistance, covering debris removal and infrastructure repairs, $9.9 billion for HUD Community Development Block Grant Disaster Recovery focused on housing and infrastructure, and millions in funding for programs such as LIHEAP, CSBG, and child welfare grants. Additional support includes $432.3 million for water infrastructure repairs and millions for Brownfield cleanup, air quality improvements, and transportation infrastructure.
Workforce recovery efforts allocate $51 million for displaced worker assistance and $375.8 million for workforce childcare and health needs. Wildfire resilience measures include $350 million for U.S. Forest Service post-fire recovery and wildfire risk reduction, along with $2 million for USGS mapping and modeling.
Newsom acknowledged the Trump administration’s early support in debris clearance and recovery efforts, expressing confidence that Congress will approve the necessary funding. He highlighted the importance of rebuilding Los Angeles to ensure its continued role as a “beacon to the world,” especially as the city prepares to host the FIFA World Cup and Olympics.
The governor’s office emphasized that California has already taken significant steps to expedite rebuilding, including suspending environmental permitting requirements and providing tax relief. They have also increased wildfire prevention funding. However, Newsom stated that the scale of the disaster necessitates federal intervention.
“It’s clear that recovery from these fires is beyond the capabilities of California alone and necessitates the support of the United States government,” Newsom said.
