Gov. Gavin Newsom is proposing a new $100 million fund to aid rebuilding efforts post-disasters following the deadly Los Angeles wildfires last January. The proposal is part of his revised budget unveiled on Thursday, May 14.
In Los Angeles — where county and city residents faced the high-profile, deadly Palisades and Eaton fires in 2025 — the issue is about the gap between what insurance is paying and costs of construction, Newsom said. Building on the success of the CalAssist Mortgage Fund, a mortgage relief program open to these fire victims, comes a new proposal to address that gap, according to the governor.
The proposal will help Californians “secure construction loans,” “access lower-interest financing,” “reduce monthly borrowing costs,” and “rebuild faster and more affordably,” Tara Gallegos, a spokesperson for Newsom’s office, said in an email to the USA TODAY Network.
“Many families still face a major gap between insurance payouts and the true cost of rebuilding — while struggling to access affordable financing,” she said.
The $100 million investment is for a new Disaster Rebuilding Fund, which would “partner with lenders, nonprofits, and philanthropy to lower rebuilding costs and expand access to financing,” according to Gallegos.
