wildfire

SACRAMENTO — Gov. Gavin Newsom will propose a new $100-million fund to help wildfire victims afford loans to rebuild their homes under a revised budget plan set to be released Thursday.

The Newsom administration estimates that thousands of victims of the Los Angeles wildfires cannot afford to rebuild, blaming a lack of access to affordable loans and a gap between insurance payouts and the cost to build again.

“We have been on the ground in L.A. since Day One of recovery from these fires, and we aren’t turning our backs now,” Newsom said in a statement. “This community deserves continued support to help them get back on their feet, and rebuild their homes and their lives. “

The new fund would be designed to cover loan-loss guarantee to lenders, in which the state would commit to paying back a percentage of a loan amount if a borrower defaults, in order to lower the risk for lenders and encourage them to award construction loans to borrowers who might not otherwise qualify or only be eligible for loans at high interest rates. The money would also be available for homeowners to buy down their interest rates during the construction period, according to Newsom’s office.

The Eaton and Palisades fires killed 31 people and destroyed over 16,000 structures in January 2025.

A recent survey of the wildfire victims found that homeowners estimate they need more than $600,000 on average above their insurance payouts to rebuild their homes, according to a report from a wildfire recovery nonprofit called the Department of Angels. The gap in Altadena was about $550,000, and between $1.19 million and $1.73 million in Pacific Palisades and Malibu.

Under Newsom, California has also provided mortgage relief to more than a thousand wildfire survivors under CalAssist, a program that provides grants to eligible homeowners to cover mortgage payments for 12 months up to $100,000.

The governor’s new proposal will be included in his funding plan for the upcoming 2026-27 budget year that begins July 1.

State revenue from income tax collection is higher than initially forecast, a boon that is expected to wipe out a projected deficit in the year ahead. Analysts attribute the revenue increase to an artificial intelligence boom in the stock market.

Though likely temporary, the extra funding is expected to give Newsom enough cushion to balance the state budget without major cuts and lower a projected shortfall in 2027-28.

The proposal to create the rebuilding fund requires support from both houses of the California Legislature and would move forward as a trailer bill accompanying the state budget. The funding would be available to disaster survivors, though details on eligibility will be determined during the legislative process.

The emails continually fill my inbox: Startups exclaiming they have engineered a solution to protect homes from wildfires.

I’ve been pitched a system that monitors fires via satellite so it can automatically turn on water cannons when fire gets too close. Another offered high-tech speakers that homeowners can place around their home that blasts powerful but silent sound waves designed to disrupt the chemical process of combustion.

One recent one was so outlandish, I couldn’t ignore it:

An entrepreneur together with a former mayor of Malibu were appearing on Shark Tank to pitch a new system to literally lower an entire home into a subterranean vault when a wildfire approaches.

Many fire officials and experts are optimistic we really can find part of the solution to California’s wildfire crisis in the proliferating world of home defense tech. But they also warn these wild ideas are often expensive as well as largely unproven.

Of course I tuned in to Shark Tank.

“I know, this sounds like a magic trick,” entrepreneur Holden Forrest told the Sharks.

“It sounds crazy,” investor and businesswoman Barbara Corcoran interjected.

Nonetheless, Corcoran, who lost her Pacific Palisades home in the 2025 fires, invested $1 million in exchange for a 20% ownership stake in the company — on the condition that its first proof-of-concept home is her own.

If you, like Corcoran, want to put down some serious money for exciting new tech, there are a few things you should know.

This kind of tech is often significantly more expensive than proven, less flashy approaches to reduce the risk of your home burning — such as covering vents with mesh so embers can’t sneak into the home and multipaned windows that are less likely to shatter in the extreme heat, allowing flames and embers to enter.

For example, Forrest expects the retractable homes to cost around $1,000 per square foot. The company hopes to eventually get it down to around $400.

For reference, Palisades fire survivors expect to pay around $800 per square foot to rebuild, while Eaton fire survivors expect to pay just shy of $600. It’s also more than a new series of fire-resilient homes in the Palisades that incorporate both tried-and-true and flashy new tech, sitting around $700.

Fire safety experts also warn that some of this technology can encourage dangerous behavior such as ignoring evacuation orders and staying to defend homes. For example, even when water cannon companies insist their technology can function autonomously, some homeowners nonetheless stay behind to operate them.

Forrest rejected the idea that his technology, HiberTec Homes, would encourage homeowners to disobey evacuation orders — he argued the opposite. The trust that comes with knowing your home will survive actually decreases the likelihood residents will stay behind, he told the Sharks.

Many of the new home protection systems remain unproven, in part because it takes time for researchers to evaluate them. There are three steps to that:

First, scientists head to the lab to see whether the physics behind the tech works as expected in controlled tests.

Second, they investigate individual homes that used the tech in major fires to piece together whether the same physics held together in the chaos and immense power of real-world fires.

Third, they determine whether what they saw in the lab and on the ground translates to a reduced risk at scale. To do this researchers survey thousands of structures that faced wildfires and compare the percentage with the tech that survived with the percentage without the tech that survived.

If you live in a fire-prone area, and you understand the risks and uncertainties of new tech and have money to spare, by all means, build the wildfire bunker of your dreams — just email me an invite to check it out.

Otherwise, Cal Fire maintains a list of the less flashy solutions that have already gone through their scientific paces.

More recent wildfire news

After months of fierce debate between fire officials and residents in fire-prone areas, California released a new “Zone Zero” proposal outlining landscaping restrictions within 5 feet of people’s homes. Unlike previous proposals, many Southern Californians seem to be … OK with this one.

California regulators determined State Farm “delayed, underpaid, and buried policyholders in red tape.” The Department of Insurance may now seek to suspend the company’s license. Meanwhile, the U.S. Justice Department filed a brief supporting 60 fire victims who are suing State Farm and other insurers, my colleague Laurence Darmiento reports.

Survivors of the 2023 Maui fires could start receiving their share of a $4-billion settlement with Hawaiian Electric, the state of Hawaii, Maui County and other defendants as early as June. However, few will break even, reports Stewart Yerton of Honolulu Civil Beat. Lawyers will get a slice for legal fees; the Internal Revenue Service may claw back as much as a third if Congress doesn’t resurrect a tax exemption for such settlements; and insurers who paid out claims will get 10% of the money.

Oh — and this Saturday is Fire Service Day. There’s a good chance your local fire station will hold an open house, complete with fire equipment demos and maybe even free pancakes.

A few last things in climate news

Tom Steyer, a Wall Street prodigy turned billionaire who made a portion of his money off investments in coal-fired power plants, is now trying to use that money to convince Californians he’s the best candidate on climate and energy affordability. Read my colleagues Ben Wieder and Hayley Smith’s full profile here.

The last California-bound oil tanker to pass through the Strait of Hormuz before the Iran war reached the Port of Long Beach, my colleague Blanca Begert reports. After the ship finishes offloading its crude oil, California will have to manage a deficit of roughly 200,000 barrels of oil per day.

The company that produces the widely used weedkiller Roundup promised to “provide a small thanks” to the Environmental Protection Agency administrator after the agency asserted it would not approve a label for the weedkiller warning it causes cancer, reports Sky Chadde of Investigate Midwest. The revelation came at a congressional hearing last week as the company seeks immunity in the Supreme Court.

This is the latest edition of Boiling Point, a newsletter about climate change and the environment in the American West. Sign up here to get it in your inbox. And listen to our Boiling Point podcast here.

For more wildfire news, follow @nohaggerty on X and @nohaggerty.bsky.social on Bluesky.

Wildfire and insurance — issues amped by climate change — along with the price of gas, took center stage at the California governor’s debate on Tuesday night.

Here are some of the candidates’ defining statements, starting left of the stage:

Tony Thurmond

The Democratic State Superintendent of Public Instruction addressed the state’s wildfire insurance crisis, where private insurers have been dropping policies as climate changes fuels more frequent catastrophic fire. The state has allowed insurers to raise rates in return for writing more policies, but so far its backup FAIR Plan, meant to provide coverage when other companies will not, continues to grow.

Thurmond said he would withhold tax credits, subsidies and benefits from non-cooperative insurers, although moderators and other candidates raised questions about the legality of this strategy.

“The governor can certainly work with the Insurance Commissioner to say there should be no rate increase unless the insurance industry is actually writing policies. They have failed California in our greatest need. They’ve taken the money for premiums and then when people needed to have support to rebuild their homes, they said, ‘whoops, we’re not going to help you.’ Then they got a rate increase. I’m sorry, where I come from, when you do a bad job, you don’t get a raise.”

Chad Bianco

The Republican Riverside County Sheriff said insurers aren’t leaving California because of climate change, but because the state has failed to pass and enforce vegetation management and defensible space policies that would reduce wildfire risk.

“It wasn’t global warming, stop believing that. It was a failed environmental policy that doesn’t allow fire departments to prevent defensible space around our homes or clear out the brush for 30 years that are building in our mountains and in our hills that took out a city. [Insurers] specifically said we were going to lose a city, and our governor said ‘we don’t care.’ And so the insurance companies left.”

Inadequate brush clearance has contributed to other fires in the state, although it’s not a factor experts cite in the Los Angeles fires specifically.

Tom Steyer

The Democratic billionaire hedge fund founder who is positioning himself as the climate candidate in the race, touted his drive to make oil companies pay for damages from climate change, including rising insurance rates and homes lost to wildfires.

“In environmentalism, I have three real rules. Number one is polluter pays. It’s absolutely critical that if people are going to pollute and damage the environment and cause harm to their neighbors, they pay. Two, we have to include environmental justice in every single environmental rule. And third is we need to start to deploy all of the clean energy stuff that’s cheaper now and get us back to the front of the world in leading it.

“There is one person that the corporations are going after, including Big Oil, who is spending millions of dollars to stop me. The electric monopolies, PG&E, millions of dollars to stop me, because I’m the person on this stage who’s the change agent.”

Steve Hilton

The former Republican Fox News commentator said insurers should be allowed to raise rates consistent with actual wildfire risk. He also advocated for “modern forest management,” removing fuel from forests, as a way to protect against wildfires, reduce carbon emissions from fire, and revive the state’s timber industry.

“We can create jobs and opportunity in rural California and reduce carbon emissions in the process, because we won’t have the mega wildfires.”

Asked if he supports the transition to electrification, he promoted natural gas: “Yes, but let’s be sensible about electric. Right now, we have a fleet of gas fired power stations generating electricity that are running at 10 to 15% of their capacity, even though we have abundant natural gas in California that we could be using to generate affordable, reliable electricity that would lower the cost of electric bills for consumers and businesses.”

According to the U.S Energy Information Administration, California’s natural gas production provides less than one tenth of what the state consumes.

Xavier Becerra

The former Health and Human Services Secretary said he would call a state of emergency as governor to require wildfire insurers to freeze rates and come to the table.

“This affordability crisis is hitting every family, and we have to act as if this were a break glass moment … Rate payers have to understand what their risk is, so they understand why they are going to pay for what they’re going to pay for their home insurance. But an insurance company has to be open and transparent about how its pricing its policies so people can afford it.”

Moderator Julie Watts noted that California home insurance rates are below the national average and questioned the legality of a freeze.

Katie Porter

The former Democratic Orange County Congresswoman was asked whether California should keep its refineries. Two of them closed in the past year, reducing the state’s refining capacity by 20 percent and causing California to lean more heavily on imports.

She said the state should keep the remaining refineries open, but also rapidly scale up green energy to meet the state’s growing electricity demand: “Right now we need to keep all of our energy sources online. That’s just the reality that we’re in. … Right now those refineries, they’re up, they’re running, they’re creating good jobs. Let’s keep them there. But I want to be really clear … The people who work at those refineries, and the people who live in Kern County also face some of the worst pollution and lower life expectancies. Green energy gets us out of that.”

She also backed an idea to have state dollars cover insurance for insurers, known as reinsurance.

Matt Mahan

Democratic San Jose Mayor called to suspend the state’s 61 cent-per-gallon gas tax, used to fund road repairs, bridges, and public transport. The state is looking at a $216.4 billion revenue shortfall over the next decade due to increasing fuel economy and electric vehicles. The other Democratic candidates support keeping the tax; Mahan has instead proposed a flat fee on all vehicles.

He said: “I’m the only candidate on this stage who has pledged to suspend and then reform the gas tax. It is the most regressive tax in California. Working people, rural people, are spending three times as much maintaining our roads as wealthier EV owners.”

On the wildfire insurance crisis he said: “The government in Sacramento created so many restrictions, including taking over a year to approve any rate changes, prohibiting insurance companies from using climate data to project future costs, that they stopped writing new policies. The answer is bring them back, force them to compete, allow them to appropriately price risk, and then hold government accountable for maintaining our wildland, reducing all that vegetation and wildfire risk so that we don’t have these catastrophic fires.”

Antonio Villaraigosa

The former Democratic L.A. mayor expressed his concerns with the readiness of the state’s infrastructure to support a transition to electric vehicles.

“We need an all of the above strategy that understands we’ve got to transition from oil and gas to renewables. But here’s an example: the 2035 mandate [to ban gas-powered car sales]. We built 167,000 charging stations in the last 10 years. We need 2 million more to get to that mandate, and if we build them, we don’t have a grid. So we ought to build the grid instead of arguing about whether or not we need an all-of-the-above policy.”