Newsom’s $2.5B LA Fire Relief Fund Went Everywhere — Except Directly to Survivors
NBC4 Investigates reported that sixteen months after Governor Newsom announced a $2.5 billion wildfire relief package for the January 2025 fires, much of the money has not reached survivors directly. State records reviewed by NBC4 showed that at least 60% of the initial $1.5 billion portion remained unspent, while much of the $605 million spent so far went to state agencies, fire department reimbursements, CHP road closures/security, small business assistance, and temporary property-tax relief. The article also found that about $14 million from the fund was used for CHP deployments at downtown Los Angeles immigration-enforcement protests, raising questions about whether fire recovery money was diverted to unrelated law-enforcement costs. Newsom’s office said the package was intended largely as an advance for FEMA-reimbursable recovery projects, but NBC4 noted that the authorizing bill and Newsom’s public statements did not describe that restriction.
Take note that neither the Eaton or Palisades fires received State funded soil testing to establish scientific clearance on destroyed lots, even though similar testing support was provided after past California fires including the Woolsey, Thomas, and Mountain View fires. Newsom also did not include a request for FEMA funding to cover the cost of this testing, leaving fire survivors without a state-funded pathway to verify whether their lots are safe for rebuilding and return.