Gov. Newsom seeks $40B in fire disaster aid from feds

Gov. Gavin Newsom wants Uncle Sam to shower Los Angeles County with another $39.7 billion in fire disaster relief, while allies to President Donald Trump want strings attached to the funds, including one who wants to deflate a public body that makes crucial real estate development decisions for valuable coastland.

The governor has asked Congress to approve the funds to help Altadena, Pasadena, the Pacific Palisades and Malibu, which lost 16,251 homes, businesses and other structures from the historic wildfires last month, the Los Angeles Times reported.

Ric Grenell, a Trump ally serving as his presidential envoy for special missions, said “there will be conditions” to the coming aid.

Among possible conditions being discussed, he said Friday, was defunding the California Coastal Commission — which regulates coastal development and protects public beach access. Trump has criticized it as an overly restrictive bureaucratic agency that stands 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 told the Conservative Political Action Conference, outside Washington.

The firestorm driven by 80 mph winds that torched 37,400 acres could become the costliest natural disaster in U.S. history, Newsom said.

Some Republicans have suggested linking federal aid to policy changes in Sacramento such as altering California’s water policy, or imposing new voter ID requirements. Trump, a frequent critic of Newsom and California’s water policies, has threatened to withhold funding for states that don’t support his agenda.

Newsom fired off a letter late last week asking House Speaker Mike Johnson (R-La.), House Minority Leader Hakeem Jeffries (D-N.Y.), Rep. Tom Cole (R-Okla.), the House Appropriations Committee chair, and Rep. Rosa DeLauro of Connecticut, the lead Democrat on that committee, for their support.

“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 have swelled to more than $250 billion — with real estate losses from the Palisades and Eaton fires predicted to top $30 billion, according to a Times analysis.

Newsom outlined how the requested funding would be used to rebuild infrastructure, homes, business, schools, churches and healthcare facilities, while supporting the needs of residents, workers and children affected by the blaze.

“Make no mistake, Los Angeles will use this money wisely,” Newsom told the lawmakers.

His largest request is for an additional $16.8 billion from the Federal Emergency Management Agency, most intended to rebuild property and infrastructure, with $5 billion set aside for debris cleanup, according to the Times.

The governor also asked for $9.9 billion from the Department of Housing and Urban Development for grants to fire victims, homeowners, renters and businesses.

He also requested $5.29 billion from the Small Business Administration for homeowner and business loans.

He sought another $4.32 billion in recovery grants for local governments from the Economic Development Administration, plus $2 billion in low-income housing tax credits from the Internal Revenue Service.

Newsom’s letter didn’t mention the Trump administration threat to impose conditions on federal aid. Instead, he thanks President Donald Trump and his administration’s support for speeding fire debris removal and offering a blanket approach to recovery.

— Dana Bartholomew