Estimates of the total economic loss from the firestorm have been estimated to surpass $250 billion.
SACRAMENTO, Calif. — California Gov. Gavin Newsom has asked Congress to approve nearly $40 billion in aid to help the Los Angeles area recover from January’s devastating wildfires, which he said could become the costliest natural disaster in U.S. history.
Newsom sent a letter Friday asking for support from lawmakers including House Speaker Mike Johnson (R-La.) and Rep. Tom Cole (R-Okla.), the House Appropriations Committee chair.
“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.
Estimates of the total economic loss from the firestorm have been estimated to surpass $250 billion — with real estate losses from the Palisades and Eaton fires predicted to potentially top $30 billion, according to a Los Angeles Times analysis. More than 16,200 structures were destroyed as flames ripped through Pacific Palisades, Malibu, Pasadena and Altadena.
Newsom vowed that the funding would be used to rebuild homes, infrastructure, businesses, schools, churches and health care facilities, while supporting the needs of people affected by the devastation.
“Make no mistake, Los Angeles will use this money wisely,” Newsom wrote.
His largest request is for an additional $16.8 billion from the Federal Emergency Management Agency, mostly intended for the rebuilding of property and infrastructure, with $5 billion earmarked for debris cleanup.
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Newsom also asked for $9.9 billion from the Department of Housing and Urban Development for grants to fire victims, homeowners, businesses and renters, as well as $5.29 billion from the Small Business Administration for homeowner and business loans.
Newsom thanked President Donald Trump for support for fast-tracking debris removal. The letter did not mention recent threats by the Trump administration that federal aid could come with strings attached.
“We are eternally grateful,” Newsom said.
Trump has been a frequent critic of Newsom and California’s water policies. Ric Grenell, a Trump ally serving as his envoy for special missions, said Friday that “there will be conditions” to any federal aid for the state.
He said one of the possible conditions being discussed was defunding the California Coastal Commission, which regulates coastal development and protects public beach access. Trump has criticized the agency as overly restrictive, bureaucratic and a hindrance to timely rebuilding efforts.
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