SACRAMENTO, Calif. — California Governor Gavin Newsom is advocating for nearly $40 billion in federal aid to assist the Los Angeles area in recovering from the catastrophic wildfires that struck in January, potentially marking the costliest natural disaster in U.S. history.
In a letter sent on Friday, Newsom reached out to key congressional leaders for support, emphasizing the significant economic impact of the devastation.
“Los Angeles is one of the most economically productive regions globally, but it requires federal assistance to fully recover from this unprecedented disaster,” Newsom stated.
Economists estimate the total financial loss from the wildfires could exceed $250 billion, with losses in real estate from the Palisades and Eaton fires alone projected to reach over $30 billion, according to local analyses. The fires have destroyed more than 16,200 structures across Pacific Palisades, Malibu, Pasadena, and Altadena.
Newsom assured that the requested funds would be directed towards rebuilding homes, infrastructure, businesses, schools, churches, and healthcare facilities, prioritizing the needs of those affected by the wildfires.
“Make no mistake, Los Angeles will utilize this funding prudently,” Newsom emphasized.
The most substantial request includes an appeal for $16.8 billion from the Federal Emergency Management Agency, primarily aimed at property and infrastructure reconstruction, along with $5 billion designated for debris removal efforts.
Additionally, Newsom is seeking $9.9 billion from the Department of Housing and Urban Development to provide grants for fire victims, homeowners, businesses, and renters, as well as $5.29 billion from the Small Business Administration for loans to homeowners and businesses impacted by the fires.
Newsom expressed gratitude for the support received in expediting debris removal, while also addressing the concerns around potential stipulations for federal aid.
“We are greatly appreciative,” Newsom commented, highlighting the necessary support for recovery efforts.
There have been discussions about potential conditions for the aid, including the possibility of defunding regulatory agencies associated with coastal development, which have been criticized for impeding timely recovery efforts.
