Gov. Gavin Newsom, who asks Congress to approve another $39.7 billion in aid to help Los Angeles recover from catastrophic damage caused by the fire in January, warned that it could be the most in U.S. history Expensive natural disasters.
Newsom sent a letter Friday to House Speaker Mike Johnson (R-La.); House Minority Leader Hakeem Jeffries (DN.Y.); House Appropriations Committee Chairman Rep. Tom Cole (R-Okla.); Connecticut State Rep. Rosa Delauro is the principal Democrat on the committee, demanding their support.
“Los Angeles is one of the most economically productive places around the world, but it can only rebound and thrive with the support of the federal government as it recovers from this unprecedented disaster,” Newsom wrote.
According to the Times analysis, the total economic losses to the total losses of the fire have expanded to more than $250 billion – according to the Times analysis, real estate losses and the Eaton fire are expected to be $30 billion. A total of 16,251 structures were destroyed when the fire exploded through the 37,400 acres of Pacific Palisade, Malibu, Pasadena and Altadna.
Newsom’s letter outlines how requested funds can be used to rebuild homes, infrastructure, business, schools, churches and health care facilities while supporting the needs of residents, workers and children affected by the devastating fires.
“There is no doubt that Los Angeles will use this money wisely,” Newsom wrote.
His biggest request was to make an additional $16.8 billion from the Federal Emergency Management Agency, most aiming to rebuild property and infrastructure and use $5 billion to clean up debris.
Newsom also requested $9.9 billion from the Department of Housing and Urban Development to fire victims, homeowners, renters and businesses; and $5.29 billion from the Small Business Administration, which has loaned to homeowners and businesses. He demanded $4.32 billion in local government recovery grants from the Economic Development Administration and received $2 billion in low-income housing tax credit from the IRS.
The letter will not involve disputes about the threat of the Trump administration’s threat to impose conditions on federal aid. Instead, this is thanks to President Trump and his administration’s support for fast tracking of fire debris and providing a full range of ways to recover.
“We will never be grateful,” Newsom wrote. “And we are confident that if we work together, Los Angeles will continue to act as a beacon for the world and securely secure the city to solid ground for the next few years,” Newsom wrote. , as it hosted the FIFA World Cup and the Olympics – and has flourished this century.”
Whether or not these requests are approved will depend on the willingness of Republican lawmakers to allocate funds when the administration is focused on cutting spending and the willingness of democratic lawmakers to accept any conditions that may be brought forward.
Some Republicans have suggested linking aid to certain policy changes at the state level, such as changing California’s water policies or imposing new voter ID requirements. In the past, Trump threatened to withhold federal funds from states that do not support his agenda. He often criticized Newsom and California’s water policies.
Ric Grenell, the presidential envoy for Trump’s allies, said Friday that the upcoming aid is conditional.
One of the possible conditions under discussion is to allocate funds to the California Coastal Commission, the agency that regulates coastal development and protects public beach access, he said. Trump criticized it as an overly restrictive bureaucracy, a way to rebuild efforts in a timely manner.
“I think squeezing their federal funds and making sure they don’t get the funds, getting rid of the California Coastal Commission’s funding on them will make California better,” Grenell said at the Conservative Political Action Conference outside Washington.
Newsom’s request to Congress also includes:
- $432 million to rebuild and repair water infrastructure
- $350 million to work on wildfire resilience on federal land
- $101 million in transportation infrastructure
- $36 million in energy assistance for low-income households
- $51 million for unemployed and displaced workers
- $13 million in Community Service Block Funding
- Brownfield cleans $5 million
- $2.5 million for vulnerable children and foster youth
- $2 million for air quality monitoring
He also asked the Small Business Administration to increase the maximum loan limit for home reconstruction from $500,000 to $2 million.
Rep. Brad Sherman (D-Sherman Oaks), who represents Pacific Palisades, praised Newsom’s request and thanked him for advocating the increase in the limit.
“The current restrictions are very insufficient to rebuild uninsured homes in Pacific Palisades,” he said in a statement. “Most of my voters answered a survey question that indicated their The federal top priority is raising restrictions on SBA family disaster loans when Los Angeles is rebuilt.”
