California Governor Gavin Newsom has formally requested nearly $40 billion in federal aid to help Los Angeles recover from the devastating wildfires that swept through the region in January. In a letter sent to Congress on Friday, Newsom emphasized the unprecedented scale of destruction and the urgent need for federal assistance.
The governor’s appeal was directed at key lawmakers, including House Speaker Mike Johnson (R-La.) and House Appropriations Committee Chair Rep. Tom Cole (R-Okla.). He stressed that Los Angeles, a major economic hub, cannot fully rebuild without robust federal support.
“Los Angeles is an economic powerhouse, but to regain its footing after this disaster, it requires meaningful federal intervention,” Newsom wrote.
According to a Los Angeles Times analysis, total economic losses from the firestorm could exceed $250 billion, with real estate damage from the Palisades and Eaton fires alone potentially surpassing $30 billion. More than 16,200 structures were destroyed as flames ravaged Pacific Palisades, Malibu, Pasadena, and Altadena.
The funding request prioritizes rebuilding homes, infrastructure, and businesses while also providing support for displaced residents and essential public services. Newsom assured lawmakers that the aid would be allocated efficiently and responsibly.
“Every dollar will be used to restore communities, ensuring that families, schools, and businesses can rebuild stronger than before,” he said.
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A significant portion of the request—$16.8 billion—would come from the Federal Emergency Management Agency (FEMA), primarily for property and infrastructure recovery, with $5 billion designated for debris removal. An additional $9.9 billion was requested from the Department of Housing and Urban Development to provide direct relief to fire victims, including homeowners, businesses, and renters. Furthermore, Newsom asked for $5.29 billion from the Small Business Administration to support low-interest loans for affected homeowners and businesses.
Newsom also expressed appreciation for President Donald Trump’s support in expediting debris removal efforts. However, he did not address recent indications that federal aid might be tied to specific policy conditions.
Trump has previously criticized California’s environmental regulations, particularly its water management policies. Ric Grenell, a close Trump ally, indicated that federal assistance could come with stipulations, including potential funding cuts to the California Coastal Commission. The agency, which oversees coastal development and ensures public beach access, has been a frequent target of Trump’s criticism, with claims that it imposes unnecessary regulatory hurdles.
Despite potential political challenges, Newsom remains committed to securing the aid necessary to rebuild Los Angeles and help its residents recover from one of the most destructive wildfires in the nation’s history .
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