California Governor Gavin Newsom has formally requested nearly $40 billion in federal disaster funding to help Los Angeles recover from January's catastrophic wildfires that claimed 29 lives and destroyed over 16,000 structures.
In a letter to congressional leaders, Newsom outlined a comprehensive recovery plan spanning five key sectors: businesses, private property, workforce recovery, tax incentives, and wildfire resilience. About 42% of the requested funds would support public assistance, including debris removal and repair work.
The January disasters - the Eaton and Palisades fires - ignited during an intense Santa Ana wind event with gusts reaching 100 mph. The Palisades Fire became the third-most destructive in state history, destroying 6,837 structures, while the Eaton Fire claimed second place with 9,418 buildings lost. Together, they burned through 37,469 acres.
Insurance giant State Farm has already received over 8,700 claims totaling $1 billion by February 1st. A UCLA study estimates total losses could reach $164 billion.
Local congressional representatives have voiced strong support for the funding request. Rep. Brad Sherman, whose district includes the Pacific Palisades, emphasized the urgent need for his constituents to rebuild their homes and lives.
President Trump visited the Pacific Palisades in late January to survey the damage, though he later sparked controversy by suggesting aid might be withheld unless California altered its water management policies.
Recovery efforts are currently underway through a two-phase plan led by Chief Recovery Officer Steve Soboroff. The Environmental Protection Agency has initiated a $100 million hazardous material cleanup, while the Army Corps of Engineers handles debris removal, expected to complete by January 2026.
"The impacted communities have experienced widespread devastation and the total impact on California's economy will take years to fully qualify," Newsom stated in his letter, noting that additional funding may be required as recovery continues.