Democratic Gov. Gavin Newsom is taking a direct shot at the Trump administration, expanding a state mortgage relief program to $100,000 per household while accusing the White House of “turning its back” on California fire survivors.
On Thursday, Newsom announced that disaster-affected homeowners now qualify for a full 12 months of mortgage payment relief, a significant increase from the previous three months, with a total increase to $100,000.
The maximum assistance per household skyrocketed from the original $20,000. According to a state press release, the funds are non-repayable grants with payments going directly to mortgage providers.
To date, $6.5 million has allegedly been paid to 793 recipients, primarily from the Palisades and Eaton fires, leaving a significant portion of the fund’s $1 billion budget still available.
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Gov. Newsom’s office did not immediately respond to Fox News Digital’s request for comment.
The move signals an aggressive shift by Sacramento to bypass a stalled federal disaster package and provide direct cash infusions to high-income homeowners.
In a press release, Newsom also called President Trump’s response a “lie” and a “disgrace” as the state moves to fill a perceived federal aid gap.
“We’ve been on the ground, listening and adjusting to meet people’s evolving needs. That’s why we’re expanding this program — to close the gap between relief and long-term recovery and make sure folks get the help they need to move forward,” Newsom said.
But federal officials at the Small Business Administration and White House argue that $3.2 billion in federal loans are already approved but are being blocked by California’s “local permitting backlogs” and “red tape.”
SBA Administrator Kelly Loeffler previously called California’s state and local permitting backlog a “nightmare” that has dragged out wildfire recovery.
“With President Trump’s leadership and alongside EPA, the SBA is opening an expedited path to recovery for every borrower who has been held hostage by the bureaucracy of Gavin Newsom and Karen Bass,” Loeffler said.
Though the Palisades and Eaton fires were contained by the end of January 2025, the Los Angeles County Economic Development Corporation reports that they caused up to $53.8 billion in property damage alone.
The department’s research also found extraordinarily high destruction rates, with the Palisades Fire destroying 56.3% of all assessed structures and 55.8% of single-family homes. The Eaton Fire destroyed about 50% of all structures and single-family homes.
Additionally, more than 160 lending institutions have already agreed to offer 90-day forbearance extensions beyond the legally required 12 months; and the state has pushed to use rebuilding funds to incentivize “all-electric” homes, costing anywhere from $3,000 to $10,000 less than mixed-fuel homes but aligning with California’s climate mandates.
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Fox News’ Amanda Macias contributed to this report.
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