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Taking direct aim at the Trump administration, Democratic Gov. Gavin Newsom is expanding the state’s mortgage 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 are now eligible for a full 12 months of mortgage payments, a significant increase from the previous three months, with a total increase of up 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 lenders.
To date, a reported $6.5 million has been paid to 793 recipients, mostly from the Palisades and Eaton Firesleaving a significant portion of the fund’s $1 billion budget still available.
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California Governor Gavin Newsom attends the 62nd Munich Security Conference, February 13, 2026. (Kay Nietfeld/photo alliance via Getty Images)
The move signals an aggressive shift by Sacramento to bypass a stalled federal disaster package and provide direct cash injections to high-income homeowners.
In a press releaseNewsom also called President Trump’s response a “lie” and a “disgrace” as the state takes steps to close a perceived gap in federal aid.
“We’ve been on the ground, listening and adapting to meet people’s changing needs. That’s why we’re expanding this program – to close the gap between relief and long-term recovery and ensure people get the help they need to move forward,” Newsom said.
But federal officials from the Small Business Administration and the White House claim so $3.2 billion in federal loans have already been approved, but are blocked by California’s “local permit backlogs” and “red tape.”
SBA Administrator Kelly Loeffler previously called California’s state and local permit backlog a “nightmare” that has slowed wildfire recovery.
“With President Trump’s leadership and together with the EPA, the SBA is opening an accelerated path to recovery for every borrower held hostage by the bureaucracy of Gavin Newsom and Karen Bass,” Loeffler said.
Although the Palisades and Eaton fires were contained by the end of January 2025, the Los Angeles County Economic Development Corporation reports that they up to $53.8 billion in property damage alone.
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The department’s research also found an extremely high destruction rate, with the Palisades Fire destroying 56.3% of all buildings assessed and 55.8% of single-family homes. The Eaton Fire destroyed approximately 50% of all buildings and single-family homes.
In addition, more than 160 credit institutions have already agreed to offer 90-day forbearance extensions beyond the legally required twelve months; and the state has pushed to use reconstruction funds to incentivize “all-electric” homes, which cost anywhere from $3,000 to $10,000 less than mixed-fuel homes, but in line with California climate mandates.
