Sixteen months after California Gov. Gavin Newsom announced a $2.5 billion package of relief funds and other measures for the victims of the January 2025 wildfires, state records show most of the fund remains unused, few of the dollars reached victims directly and some of the money was diverted for law enforcement unrelated to the response to the fires.
NBC4 Investigates found much of the $605 million expended to date was circulated to state agencies that performed tasks related to the Eaton and Palisades fires, $37 million went to the LA City and County fire departments to reimburse the costs of firefighting, and nearly $21 million was paid to the California Highway Patrol for managing road closures and security in the fire zones.
State records also showed about $14 million was used to pay CHP officers sent to demonstrations against aggressive federal immigration enforcement in downtown LA after state officials authorized use of the fire relief money for other purposes.
That means 60%, or roughly $895-million, of an initial $1.5-billion portion designated for fire relief, hasn’t been used despite widespread need throughout the communities devastated by the fires.
“2.5 billion dollars is a whole hell of a lot of money,” said Eaton fire victim and community advocate Nicole Vazquez, who said she was unaware of the fund’s existence.
“Off the top of my head, I was like, ‘No, I don’t remember that at all,’” she said.
See the state expenditure report below
Gov. Newsom signed the bill authorizing the funds at a news conference in Pasadena on Jan. 23, 2025.
Newsom’s office declined interview requests earlier this year but said in a statement late Thursday that there were limits on what the money could be used for.
“The $2.5 billion authorized in January 2025 was specifically designed as an advance of funds for FEMA reimbursable projects, to accelerate recovery and provide resources for immediate action as the federal government processes claims over years,” wrote spokesperson Diana Crofts-Pelayo.
A FEMA reimbursement requirement wasn’t included in the text of the bill authorizing the fund, ABX14, which says, “Those uses include, but are not limited to, emergency protective measures, evacuations, sheltering for survivors, household hazardous waste removal, assessment and remediation of post-fire hazards such as flash flooding and debris flows, traffic control, air quality and water and other environmental testing, and other actions to protect health, protect the safety of persons or property, and expedite recovery.”
Newsom’s press release announcing the fund did not mention a FEMA restriction on the use of the money, and he posted on social media there were, “no strings attached.”
$2.5 billion in relief to support LA after historic firestorms.
We did this together with the legislature.
It was passed unanimously.
Bipartisan support.
No “conditions.” No strings attached.
We hope Congress and @realDonaldTrump will do the same. pic.twitter.com/hk9kAHiMiW
— Gavin Newsom (@GavinNewsom) January 24, 2025
The office of Encino Assemblyman Jesse Gabriel, who co-authored the bill that created the fund, referred questions to the Governor’s office and declined to make Gabriel available for an interview.
“I had no idea $2.5 billion was designated for fire victims,” said Eaton fire victim and community advocate Zaire Calvin, whose sister died in the fire and who’s family lost five homes.
“One hundred percent there should be an expectation of direct help to everyone who lost everything in Altadena, including the 19 people who lost their lives, to make sure that there’s funding to bridge the gaps,” Calvin said.
According to California Department of Finance records other fund expenditures included financial assistance for small businesses and to temporarily offset lost property tax revenue.
The California Department of Economic Opportunity added $3 million from the package to a local fund set up by LA County to assist small business owners and their employees.
One hundred twenty-one million dollars went to LA County for temporary tax relief, as the County anticipated many property owners would delay property tax payments on homes and businesses damaged or destroyed in the fire, the records showed.