Friday, May 15, 2026

Barger Backs Newsom’s Proposed $100 Million Wildfire Rebuilding Fund

The Los Angeles County supervisor whose district includes Altadena says the proposal — which requires legislative approval — could help Eaton Fire survivors access construction financing

Los Angeles County Supervisor Kathryn Barger on Thursday endorsed a $100 million Disaster Rebuilding Fund proposed by Governor Gavin Newsom, saying it could help Eaton Fire survivors access the construction financing many need to rebuild homes destroyed more than 16 months ago.

Barger, whose 5th District includes Altadena, issued the statement the same day Newsom released his revised 2026-27 state budget. The proposed fund would not provide direct cash to homeowners. Instead, it would facilitate private financing through an interest-rate buy-down program and a loan-loss guarantee program — tools designed to encourage banks to issue construction loans to rebuilding homeowners. The proposal requires approval from both houses of the California Legislature and would move forward as a trailer bill accompanying the state budget, according to reporting by Tribune News Service.

The Eaton Fire, which ignited January 7, 2025, destroyed 9,418 structures and damaged 1,073 more, according to Cal Fire. The fire killed at least 19 people and burned 14,021 acres over 24 days. Most of the destruction occurred in Altadena.

“Governor Newsom’s revised state budget proposal offers an encouraging sign for wildfire survivors who are still struggling to rebuild their lives and homes,” Barger said in her statement.

“Many Eaton Fire survivors are under enormous pressure and strain right now, navigating rising rebuilding costs, insurance payouts that fall far short of what it actually takes to rebuild, and FEMA assistance caps that leave significant gaps uncovered,” she said.

Barger said her understanding of the proposal is that the fund “could play an important role by facilitating access to private financing though an interest rate buy-down program and a loan loss guarantee program that would encourage lenders to finance rebuilding projects.” She added that “these tools can make a meaningful difference for families who otherwise may not have access to the capital needed to rebuild.”

Newsom, announcing the budget in Sacramento, said the fund is designed to address the gap between insurance settlements and the cost of construction. “The gap now, the issue in Los Angeles is really around that gap between what insurance is paying — more accountability there — and cost of construction obviously has gone up,” Newsom said at a news conference, according to KTLA. “Lotta people with permits, but they’re not moving yet because of that gap. We believe this can substantially help them.”

Under the proposal, the state would commit to paying back a percentage of a loan amount if a borrower defaults, lowering the risk for lenders so they will issue construction loans to borrowers who might not otherwise qualify, according to Tribune News Service. The fund would also help homeowners buy down interest rates during construction.

Details on eligibility have not been determined and will be addressed during the legislative process, according to Tribune News Service.

The proposal would build on existing state recovery programs. In June 2025, the state launched the CalAssist Mortgage Fund with $105 million in grants of up to $20,000 for disaster-affected homeowners. On February 12, 2026, Newsom expanded the program to provide up to 12 months of mortgage payments and up to $100,000 per household, according to the California Housing Finance Agency.

According to Barger’s office, roughly 1,025 homes are under construction in the Eaton Fire area, approximately 2,000 building permits have been issued, and the county has received more than 3,000 rebuild applications. Cal OES reported that as of May 3, nearly 29,500 households potentially eligible for federal Individuals and Households Program assistance were still navigating insurance claims, and nearly 1,000 households were receiving Continued Temporary Housing Assistance.

Not all observers have welcomed the state’s approach. KTLA reported Thursday that some Eaton Fire survivor advocates have publicly questioned whether state efforts are reaching the community quickly enough, with one organizer asserting that recovery dollars announced earlier remain undisbursed.

Barger said in her statement that if the Legislature approves the budget proposal, “I will be looking to the state to provide timely and clear guidance so survivors fully understand how these resources can support their rebuilding efforts and what options will be available to them.”

She closed: “Recovery after a disaster is never easy, and there is still more work ahead. But every effort to expand access to rebuilding support helps ease the burden on survivors and brings families one step closer to returning home.”

The 2026-27 fiscal year begins July 1.