Newsom proposes new $100 million disaster recovery fund

As part of his revised 2026-27 budget proposal, Gov. Gavin Newsom is recommending the state create a Disaster Rebuilding Fund, directing $100 million in relief funds to help Californians rebuild.

The idea follows the federal government’s continued delay in releasing billions of wildfire recovery dollars California requested after historic fires devastated the Altadena and Palisades neighborhoods in Los Angeles in January 2025. 

“We're focused now on how we can do what, frankly, the Trump administration has not done,” Newsom said during a press conference unveiling the budget last week.

The proposed fund would expand access for construction and renovation financing for homeowners that have been impacted by natural disasters like the L.A. fires. Through various programs, the aim is for individuals to face lower monthly construction and mortgage loan costs as well as expand their loan eligibility.

The fund would consist of $56 million from the General Fund and $44 million in existing National Mortgage Settlement funds.

The budget proposal states Newsom’s office is working with various lenders, non-profits and philanthropic partners to “enhance the impact of the fund.”

Newsom’s idea builds on the CalAssist program, which expanded its eligibility criteria this year to allow for more homeowners to qualify for mortgage assistance. Just over 1,000 homeowners have so far taken the state up on this program, according to the governor.

Renewed funding requests

California last year requested $33.9 billion in federal funding to help L.A. rebuild, which President Donald Trump and Congress have still not approved. The governor has been outspoken in his demands for the funding to be released, and ventured to Washington D.C. this week to continue this advocacy.

POLITICO reported Wednesday that Newsom has slashed his request in half, now asking for $15.7 billion, following discussions with the Federal Emergency Management Agency and the Small Business Administration.

Attempts to resolve the funding issue have been bipartisan, according to the governor.

“Our California congressional delegation has been nothing but great,” Newsom said last week. “Every Republican, not just Democrat, have had the backs of the people in Altadena and the Palisades. There's just one individual who has not,” he said in reference to the president.