President Joe Biden has already vowed that over the next six months the federal government will pay 100% of disaster response costs connected to the wildfires ravaging Southern California.
But how Congress funds that aid may not be so simple.
Last month, Congress approved a spending plan that includes money for major disasters. And the Congressional Research Service, which provides financial analysis for Congress, believes the amount set aside in that plan “should be adequate to deal with the current slate of incidents in the near term,” according to a memo shared with the Southern California News Group.
But that was before this week’s fires and the potentially breathtaking bill that will come due to rebuild. It’s too soon to know just how expensive the disaster will be, but early estimates are already as high as $150 billion, which would be about 50% more than the latest estimate for the state’s long-delayed bullet train.
The spending plan passed in December includes $29 billion for the Disaster Relief Fund, operated by the Federal Emergency Management Agency. Of that, $28 billion is available for major disasters. Separately, the feds set aside $2.25 billion for loans to help eligible households and businesses rebuild from disasters — a number that might cover a few upscale neighborhoods in Malibu but not the rebuild that’s likely for the region.
And there are other future, potential disasters in other parts of the U.S. that also figure to tap into federal money. For example: Even as fires continue to destroy homes and businesses in Southern California, the southern part of the country is battling what’s been dubbed by AccuWeather as the “biggest snowstorm in years.” Such weather events can be expensive.
There’s another wrinkle. The federal disaster money was part of a continuing resolution — meaning it was a temporary plan to keep the government open and operating — that is slated to expire on March 14. That means Congress will have to come up with another funding plan, which may or may not include a new aid package for the fire-ravaged parts of Southern California, relatively soon.
Just how soon remains to be seen, said Rep. Mike Levin, D-San Juan Capistrano, a member of the powerful House Appropriations Committee.
After all, there are plenty of political angles in play.
Republican members of the House Appropriations Committee have signaled that they will wait to consider new funds for Southern California until closer to the March deadline, Politico reported.
“You’ve got to wait until the disaster is over. It’s clearly not yet, and you’ve got to give them time to do the estimate,” House Appropriations Chair Tom Cole, R-Oklahoma, told the outlet.
Levin is concerned about how politics, especially in-fighting within the GOP, might affect aid.
While Republicans control the Senate and House — and the White House, by the time March rolls around — they only enjoy a four-seat majority in the House. That’s already led to some tension, such as a surprisingly tough re-election vote for Rep. Mike Johnson’s speakership. Initially, several Republicans from the party’s fiscally conservative wing refused to back Johnson outright, in part because of his work to pass previous spending plans.
And then there is President-elect Donald Trump. He has been openly critical of California’s Democratic leadership and has threatened to withhold wildfire aid to the state. Gov. Gavin Newsom on Friday, amid his open feud with Trump, invited the soon-to-be-president to California to see the destruction first-hand and meet with people impacted by the fires.
Levin said the Congressional Research Service told him there is no precedent for a new president coming into office and lowering or revoking the federal government’s share of disaster assistance. Presidents are able to raise Washington’s share from 75% up to 100%, the level already set by Biden.
“I’m going to talk to my Republican colleagues about how critical it will be for the Disaster Relief Fund to be replenished when the time comes so we can give our agencies the resources they need to help communities recover,” Levin said.