California Governor Gavin Newsom has asked Congress for nearly $40 billion to help Los Angeles and its surrounding areas recover from the deadly wildfires that raged out of control last month.
Newsom, who has previously warned that the fires could become the costliest natural disaster in history, wrote a letter Friday to House Speaker Mike Johnson (R-La.) and House Minority Leader Hakeem Jeffries to ask for their assistance.
‘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 in the letter also addressed to Rep. Tom Cole (R-Okla.), the House Appropriations Committee chair; and Rep. Rosa DeLauro of Connecticut, the lead Democrat on that committee.
The fires, which burned for weeks as firefighters worked to get them under control, killed at least 29 people, destroyed more than 16,000 structures and torched over 57,000 acres of land in the Pacific Palisades, Malibu, Pasadena and Altadena.
The total economic loss from the fires is estimated to be $250 billion, which includes factors such as anticipated cleanup costs, housing displacement and businesses shutting down.
Real estate losses from the Palisades and the Eaton fires are predicted to surpass $30 billion, according to the Los Angeles Times.
Newsom’s letter to lawmakers reveals how the $39.7 billion in aid he is requesting will be spent on rebuilding homes, infrastructure, businesses, schools, churches and healthcare facilities.
The biggest chunk of the money – an additional $16.8 billion from the Federal Emergency Management Agency (FEMA) – will be used to rebuild property and infrastructure. Of that, $5 billion will be earmarked for debris cleanup.
California Governor Gavin Newsom wrote a letter to Congress asking for $39.7 billion in aid for the Los Angeles wildfires that raged for weeks last month, killing at least 29 people and causing billions of dollars in damage
The letter was addressed to House Speaker Mike Johnson, Democratic Leader Hakeem Jeffries and two representatives on the House Appropriations Committee. Speaker Johnson has hinted any aid to California will have conditions
Newsom also requested $9.9 billion from the Department of Housing and Urban Development to provide grants for fire victims, homeowners, renters and businesses.
He wants the Small Business Administration to send the state $5.29 billion for loans to homeowners and businesses, while also increasing the loan maximum for home reconstruction from $500,000 to $2 million.
Additionally, he is asking for $4.32 billion in recovery grants for local governments from the Economic Development Administration and $2 billion in low-income housing tax credits from the Internal Revenue Service (IRS).
President Donald Trump and Speaker Johnson have both suggested that there could be conditions that California will need to meet in order to continue to get federal aid for the wildfires.
During the Conservative Political Action Conference on Friday, Trump’s special envoy Ric Grenell confirmed this, telling Politico ‘there will be conditions.’
One of Trump’s demands could be to take away federal dollars from the California Coastal Commission, a state agency that protects public access to beaches but has also been criticized for putting burdensome red tape on development.
Last month, Trump confronted Los Angeles Mayor Karen Bass about potential overregulation getting in the way of rebuilding.
‘I think squeezing their federal funds, making sure they don’t get funds, putting strings on them to get rid of the California Coastal Commission is going to make California better,’ Grenell said.
Newsom didn’t antagonize President Donald Trump in his letter to Congress, rather he thanked his administration or what it has done so far in supporting fire debris removal (Pictured: Firefighters watch as a helicopter drops water on the Palisades Fire on January 11, 2025)
Newsom’s plea for help came as the federal government – Congressional Republicans and the Trump administration alike – are heavily focused on cutting costs
Newsom’s letter to Congress does not mention his fraught relationship with Trump, rather he thanked the current administration for what it has done so far in supporting fire debris removal.
‘We are eternally grateful,’ Newsom wrote. ‘And we are confident that if we work together, Los Angeles will continue to serve as a beacon to the world and securely place the city on solid ground in the coming years as it hosts the FIFA World Cup and Olympics – and thrive for the century to come.’
Newsom’s plea comes as Trump and Elon Musk are in the midst of a project to slash federal spending they deem to be wasteful and fraudulent through the Department of Government Efficiency.
Congressional Republicans are also in the throes of readying their $340 billion budget bill, with the Senate ramming their version through early Friday along party lines.
A final package is likely to include roughly an extension of $4.5 trillion in tax cuts, as well as cuts to Medicaid and other social safety net programs.
