California Wildfires Could Become Nation's Most Expensive Natural Disaster at $135B

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California Governor Gavin Newsom declared that the devastating Los Angeles-area wildfires will rank among the worst natural disasters in U.S. history, with damages expected to exceed $135 billion.

Speaking on NBC's "Meet the Press," Newsom emphasized the unprecedented "scale and scope" of the disaster that has already claimed 16 lives and destroyed over 12,000 structures across greater Los Angeles.

The fires have forced more than 153,000 residents to evacuate, with another 166,000 under evacuation warnings. Four major fires - Eaton, Palisades, Kenneth, and Hurst - have collectively burned approximately 40,000 acres.

Adding to the crisis, firefighters reported that some hydrants ran dry during the initial response on Wednesday. Newsom called for an independent investigation into the local water supply issues, questioning whether infrastructure problems or the sheer scale of the disaster led to the water pressure failures.

The National Weather Service warns that Santa Ana winds, which helped propel the initial blazes, are expected to continue through Wednesday. Wind gusts of 30-50 mph are forecast, with some mountain areas potentially seeing gusts up to 75 mph.

Newsom announced plans for recovery, including a "Marshall Plan" for rebuilding Los Angeles ahead of the 2028 Olympics. The governor said his team is already coordinating with city leaders, businesses, nonprofits, and labor organizations to reimagine "L.A. 2.0."

FEMA Administrator Deanne Criswell reported that over 24,000 people have already applied for disaster assistance, with numbers expected to rise. The agency confirmed federal funds are available to support the state's recovery efforts.

Currently, the Eaton Fire is 27% contained after burning 14,000 acres, while the larger Palisades Fire, at 23,000 acres, is 11% contained. Officials expect the destruction to increase as high winds return to the region.

Los Angeles firefighters are making modest headway against several major wildfires ravaging the region, but strong winds forecast for Friday could reverse their hard-won progress. The blazes have already claimed 10 lives and forced over 150,000 people to evacuate. The two largest infernos - the Palisades and Eaton fires - remain largely uncontained, with containment levels at just 8% and 3% respectively. Together they have burned through over 34,000 acres of land. Meanwhile, crews have achieved better results with the Lidia fire near Acton, now 75% contained, and partial containment of the Hurst and Kenneth fires.