He also indicated that California may seek additional funding in the future to support ongoing recovery efforts.

In a letter to Congress, Newsom emphasized the economic significance of Los Angeles and the necessity for federal support to recover from what he described as an unprecedented disaster.

The wildfires, which started on January 7, 2025, burned 37,469 acres, destroyed over 16,200 structures, and resulted in at least 29 fatalities in the greater Los Angeles area.

The economic loss from the wildfires is estimated to exceed $250 billion, with real estate losses potentially surpassing $30 billion, making it one of the costliest natural disasters in U.S. history.

California Governor Gavin Newsom has requested nearly $40 billion in federal aid to assist Los Angeles in recovering from the devastating wildfires that occurred in January 2025.

In addition to the aid request, Newsom seeks $2 billion in low-income housing tax credits from the IRS, along with allocations for water infrastructure, wildfire resilience, and community services.

The letter detailing the funding request was sent to key congressional leaders, emphasizing the need for immediate and long-term recovery efforts.

The funding request includes $16.8 billion from FEMA for rebuilding, $5 billion for debris cleanup, $9.9 billion from the Department of Housing and Urban Development for victim grants, and $5.29 billion from the Small Business Administration for loans to affected homeowners and businesses.

Despite these tensions, Newsom expressed gratitude to President Trump for expediting debris removal efforts.

Newsom highlighted the extensive damage and long-term economic impact on California, noting that around 150,000 residents have been displaced since the fires began.

However, the response to this funding request in Congress remains uncertain, as both chambers are controlled by Republicans with narrow majorities.

Trump's envoy has indicated that any federal aid may come with conditions, reflecting ongoing tensions between California's leadership and the federal administration.