California Governor Gavin Newsom has urgently requested nearly $40 billion in federal aid from Congress to support Los Angeles’ recovery from January’s catastrophic wildfires. The fires, which destroyed over 16,200 structures across Pacific Palisades, Malibu, and Pasadena, may become the costliest natural disaster in U.S. history, with total economic losses exceeding $250 billion.
In a letter to House Speaker Mike Johnson and Appropriations Chair Tom Cole, Newsom emphasized that federal support is critical for rebuilding homes, businesses, schools, and healthcare facilities.
Los Angeles will use this money wisely,he pledged, outlining plans for infrastructure restoration and debris cleanup.
Key funding requests include:
- $16.8 billion from FEMA for property and infrastructure rebuilding
- $9.9 billion from HUD for victim grants
- $5.29 billion from the SBA for recovery loans
The proposal faces potential hurdles as Trump administration officials hint at conditions for aid, including defunding the California Coastal Commission. Newsom thanked President Trump for expediting debris removal but avoided addressing these political tensions in his letter.
With real estate losses from the Palisades and Eaton fires alone surpassing $30 billion, this relief package could set precedents for federal disaster response strategies amid growing climate challenges.