California Gov. Gavin Newsom has requested Congress approve approximately $40 billion in aid to assist the Los Angeles area in recovering from the destructive wildfires that occurred in January.
Newsom penned a letter last week to House Speaker Mike Johnson and other Congressional leaders asking for their support, saying the wildfires could potentially be the most expensive natural disaster in the nation’s history.
Driving the news: The estimated total economic losses resulting from the wildfires have been projected to exceed $250 billion, with real estate damages from specific fires predicted to reach over $30 billion.
- The devastating fires had destroyed more than 16,200 structures across Pacific Palisades, Malibu, Pasadena, and Altadena.
The big picture: Governor Newsom assured that the allocated funds would go toward the reconstruction of homes, infrastructure, businesses, schools, churches and healthcare facilities, while also addressing the needs of individuals affected by the disaster.
- The bulk of Newsom’s requested funding, amounting to $16.8 billion, is directed towards the Federal Emergency Management Agency (FEMA) to aid in property and infrastructure rebuilding, with an additional $5 billion designated for debris cleanup efforts.
- Other financial requests include $9.9 billion from the Department of Housing and Urban Development for grants aiding 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 expediting debris removal support following the wildfires.
What he’s saying: “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.
