Governor Gavin Newsom has formally asked the federal government to extend disaster assistance for thousands of Los Angeles wildfire survivors who remain displaced more than 16 months after the Palisades and Eaton firestorms tore through the region. The request, submitted Friday, seeks a 12-month extension of the Federal Emergency Management Agency’s Individuals and Households Program, the financial lifeline that has kept tens of thousands of Californians housed during one of the longest recovery efforts in state history.
If approved, the extension would keep federal aid flowing to eligible survivors through July 9, 2027.
A Recovery Still in Motion
The January 2025 wildfires killed 31 people and destroyed thousands of structures across Altadena, Pacific Palisades, and Malibu. The Eaton and Palisades fires rank as the second and third most destructive wildfires in California history, according to CAL FIRE.
According to the California Governor’s Office of Emergency Services, as of May 3, 2026, nearly 29,500 households that may be eligible for FEMA assistance were still working through insurance claims. Roughly 1,000 households continue to receive federal Continued Temporary Housing Assistance, a program designed to bridge the gap until permanent housing is secured.
The pace of physical reconstruction has lagged behind the pace of bureaucratic recovery. The City of Los Angeles, which lost 7,417 homes to the fires, has issued nearly 1,900 new building permits but seen only 34 homes fully rebuilt to date. State officials have attributed the slow rebuild to insurance payment delays, a regional housing shortage, and limited contractor availability.
“Thousands of Californians are still navigating the long road to recovery after these devastating fires,” Newsom said in a statement. “We’re doing everything in our power to support survivors, but they need continued federal support to rebuild safely and fully. Cutting off assistance now would leave families without the resources they need at a critical moment in their recovery.”
The $732 Million Bottleneck
The IHP extension request runs parallel to a separate, larger fight Newsom has been waging with Washington. The governor is also pressing FEMA to release more than $732 million in Public Assistance funding tied to the LA wildfires that has already been approved at the regional level but remains stalled at the Department of Homeland Security.
Only $37 million of that approved amount has actually been distributed, according to the Governor’s Office. The delays are holding up reconstruction of schools, parks, public infrastructure, and community facilities that local agencies cannot fund without federal reimbursement.
Newsom’s office characterized the holdups as a structural problem within DHS review protocols, compounded by multiple federal shutdowns that have interrupted the agency’s normal processing timelines. The governor has separately championed a broader supplemental appropriation that would deliver Community Development Block Grant Disaster Recovery funds to affected communities, calling that funding “important” for long-term rebuilding.
Congressional and Local Support
Representative Judy Chu, whose district includes Altadena, publicly backed the extension request during a news conference last week. Chu said continued federal infusion is necessary “to provide desperately needed infusions of federal funds for rebuilding and recovery.”
The Newsom administration has spent the past 16 months coordinating with FEMA and local jurisdictions to assess survivor needs and track gaps. State officials say additional information on remaining assistance needs will be released in the coming weeks.
A FEMA spokesperson confirmed to multiple outlets, including The Center Square, that the IHP extension request is under formal review. “We will inform the governor as soon as a determination has been made,” the spokesperson said. “FEMA remains committed to supporting survivors of the wildfires and to the locally executed, state-managed, and federally supported approach to disaster recovery.”
State-Level Actions to Date
California has not waited on Washington alone. Since the fires, Newsom has signed more than two dozen executive orders aimed at speeding rebuilding, cutting permitting red tape, and protecting survivors. The state has also deployed more than $100 million through the CalAssist Mortgage Fund to help homeowners stay current on mortgage payments during the rebuilding process.
Earlier this month, the California Department of Insurance initiated enforcement action against State Farm General Insurance Company after an expedited investigation reportedly found that the insurer had mishandled claims filed by LA fire survivors. State Farm has denied the allegations. The action seeks the largest penalties imposed on an insurer following a disaster this century, according to the state.
In a separate move, the state established a smoke damage claims task force and is advancing legislation to create a clearer framework for handling wildfire smoke damage insurance disputes, a category of claims that has emerged as a flashpoint during the LA recovery.
The IHP extension decision now sits with FEMA. With nearly 30,000 households potentially eligible and the existing program window set to expire in July, the timing carries significant weight for families still in transitional housing. State officials say they expect a determination in the coming weeks, while Newsom continues to press both Congress and the White House on the broader recovery funding package.
