News: Newsom Requests Congress to Allocate $40 Billion for Rebuilding After Los Angeles Fire

California Governor Gavin Newsom has requested Congress to approve nearly $40 billion in post-disaster aid for Los Angeles. The devastating wildfires that broke out in the Los Angeles area last month could potentially go down in history as the costliest natural disaster in the United States.

Newsom, in a post on social platform X on Friday, stated that Los Angeles will need a “comprehensive effort to rebuild from the catastrophic fires.” He said, “I am asking Congress to support the American people and provide disaster relief funding to assist Californians in recovering and rebuilding their homes as quickly as possible.”

On the same day, Newsom sent a letter to House Speaker Mike Johnson, House Minority Leader Hakeem Jeffries, House Appropriations Committee Chair Tom Cole, and senior member Rosa DeLauro.

The letter outlined a total funding request of $39,680,737,878, which will be directly used to support short-term and long-term recovery for affected communities, helping them rebuild their lives and properties.

Newsom emphasized, “Los Angeles is one of the most economically productive regions globally, but it can only recover and prosper again from this unprecedented disaster with the support of the federal government.”

Experts estimate that the total economic losses from the wildfires may exceed $250 billion. An analysis by the Los Angeles Times found that the wildfires destroyed over 16,200 structures in areas like Pacific Palisades, Malibu, Pasadena, and Altadena, with property losses potentially reaching $30 billion.

Newsom stated that the funds will be prioritized for rebuilding homes, infrastructure, businesses, schools, medical facilities, and churches, while also supporting affected residents. The letter stated, “Make no mistake, Los Angeles will wisely utilize this money.”

Among the funding requests made by Newsom, the largest is an additional $16.8 billion sought from the Federal Emergency Management Agency (FEMA), mainly for rebuilding properties and infrastructure, including $5 billion for hazardous material cleanup for households.

Another funding request is for $9.9 billion from the U.S. Department of Housing and Urban Development (HUD) to aid fire victims, homeowners, renters, and businesses. Newsom also requested $5.29 billion from the Small Business Administration (SBA) for loans for businesses and homeowners.

Newsom expressed gratitude towards President Trump for supporting plans to expedite cleanup efforts and stated that California will be “eternally grateful.” Trump has previously criticized Newsom and his state government’s water resource policies, attributing to the uncontrolled wildfires in Southern California in January.

Trump’s envoy Ric Grenell mentioned that any federal assistance provided to California will come with conditions. These conditions include revoking funds given to the California Coastal Commission, responsible for overseeing public beach access and regulating coastal development. Grenell stated that Trump criticized the agency for excessive restrictions and bureaucratic hindrances that impede swift recovery efforts.

Meanwhile, Los Angeles Mayor Karen Bass announced the dismissal of former Los Angeles Fire Department Chief Kristin Crowley due to inadequate preparedness in response to the wildfires.

Bass stated in a press conference, “I have requested a thorough investigation into all actions taken before January 7.”

“One necessary step in the investigation was for the Fire Commission Chair to ask Chief Crowley for a post-fire report, which she refused,” she said. “We all know that on the morning the fires broke out, 1,000 firefighters who could have been on duty were sent back home under Chief Crowley’s supervision. These actions led to her dismissal.”

Bass also announced the appointment of former Los Angeles Fire Department Chief Deputy Ronnie Villanueva as the interim Fire Chief.

Bass said, “Under Chief Villanueva’s leadership and experience, my office will conduct a nationwide search, and I will directly engage with firefighters and Los Angeles residents to understand what they would like to see in the next official Fire Chief.”

Villanueva has served the department for 41 years and just retired seven months ago. Prior to becoming the Deputy Chief, he worked for 24 years at disaster sites.