Sherman Supports Gavin Newsom’s $40 Billion Fire Recovery Request

PACIFIC PALISADES, Calif. –  Today, Congressman Brad Sherman (CA-32), whose district includes the Pacific Palisades, released the following statement regarding Governor Gavin Newsom’s request to Congress for $40 billion in supplemental fire disaster assistance:

“I support the Governor’s $40 billion in requested federal funding, proportionate with the scale of this disaster, which my constituents urgently need in order to rebuild their homes and their lives.

The Pacific Palisades, together with Altadena/Pasadena, sustained unimaginable destruction from the January wildfires. AccuWeather estimated that the total cost of the fires – property and economic damage combined – is as high as $275 billion, making it the costliest wildfire event in American history. Over 18,000 structures were destroyed or severely damaged in the Los Angeles area fires. The fires spanned a combined 37,000+ acres and took 24 days to become fully contained.

I have been working with Governor Newsom to ensure that California includes in its request funding for additional grants to families, homeowners, and businesses on top of the existing $43,600 maximum FEMA grant and $500,000 maximum SBA home loan for uninsured and underinsured homeowners.

I was pleased to see that the Governor is joining me in requesting that the Small Business Administration (SBA) raise its maximum loan limit for home reconstruction from $500,000 to $2 million. Congress provided the SBA Administrator with the authority to loan homeowners the amount of their uninsured losses, up to $2 million. This limit was set in 2008, when the cost of living was much lower. However, SBA chose to limit the loans to $500,000. This current limit is woefully inadequate to rebuild an uninsured home in the Pacific Palisades. Supplemental funding requested by the Governor for the SBA will provide the agency with sufficient funds to lend up to a new $2 million maximum for home rebuilding. During my most recent telephone town hall this month, a majority of my constituents that responded to a survey question indicated that their top federal priority was raising the SBA home disaster loan limit as Los Angeles rebuilds from the fires.

I am also strongly supportive of the substantial $9.9 billion request for the Community Development Block Grant – Disaster Recovery (CDBG-DR) program. Virtually all of these funds will be used to make grants to fire victims, homeowners, renters, and businesses. If Congress approves this amount, $9.9 billion will be one of the largest CDBG-DR distributions received by a state in the history of the program – befitting the size and scope of this disaster.

Another sizeable share of this funding will be used to rebuild infrastructure such as public buildings and other facilities in communities devastated by the fires through FEMA’s Public Assistance program. Funded projects would include rebuilding Palisades High School and other public schools.”

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