Gov. Gavin Newsom proposes $125M mortgage relief program to help victims of recent natural disasters
Gov. Gavin Newsom on Wednesday proposed a new $125 million package to help residents whose homes were destroyed or damaged by recent natural disasters, including the recent wildfires.
The program would aim to help homeowners whose homes were destroyed or severely damaged by recent natural disasters, placing them at risk of foreclosure. Funding for the program would also extend an existing counseling services program, which helps affected homeowners navigate their recovery.
Newsom's office also noted that the relief package would utilize existing mortgage settlement funding and would not impact the proposed 2025-26 budget.
California bill would require insurers to pay full coverage without itemized lists
'As survivors heal from the trauma of recent disasters, the threat of foreclosure should be the last thing on their minds. This disaster mortgage relief program would help lift this burden and give families more time to focus on recovery,' Newsom said in a statement.
Survivors of natural disasters since 2023, including those affected by the Park Fire, Franklin Fire, and the recent Palisades and Eaton Fires, would be eligible for mortgage assistance.
The California Housing Finance Agency would administer the program, which would include over $100 million in direct mortgage assistance, with an additional $25 million to extend an existing program that provides mortgage counseling and serves survivors by offering guidance on FEMA disaster assistance and other related needs, according to the governor's office.
The proposal will be considered at the CalHFA's next meeting on Feb. 20.
The direct assistance program and eligibility criteria will be developed and announced in more detail, if approved.
Trump official considering running for California governor if Kamala Harris enters race
While help could be on the way for impacted homeowners, many still face uncertainty about insurance coverage.
State Farm General, California's largest insurer, requested a rate hike averaging 22% due to its 'dire' financial situation after the deadly and destructive L.A. County wildfires.
California Insurance Commissioner Ricardo Lara rejected the request and is asking to speak with company officials about their financial situation.
This comes after the company asked for a separate rate hike request to raise rates by 30% for homeowners, 36% for condo owners and 52% for renters, on average, last June. That request is still pending.
Since 2023, State Farm hasn't accepted new insurance applications for all business and personal property in California. Since then, other companies have announced similar moves.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNN
an hour ago
- CNN
Trump preparing large-scale cancellation of federal funding for California, sources say
The Trump administration is preparing to cancel a large swath of federal funding for California, an effort which could begin as soon as Friday, according to multiple sources. Agencies are being told to start identifying grants the administration can withhold from California. On Capitol Hill, at least one committee was told recently by a whistleblower that all research grants to the state were going to be cancelled, according to one of the sources familiar with the matter. CNN has reached out to the White House for comment. President Donald Trump has long made Democratic-led California a target. Just last month, he threatened to withhold federal funding from California over a transgender athlete's participation in a sporting event — the latest example of the president trying to use funding as leverage to enact his agenda. The administration recently cut $126.4 million in flood prevention funding projects, and Trump repeatedly went after the state's handling of devastating wildfires earlier this year. The president and California Gov. Gavin Newsom have also publicly feuded for years. Higher education in the state could be hit hard by Trump's move. GOP Rep. Darrell Issa of California, who said he was unaware of the imminent grant cancellations, told CNN he recently met with university representatives who were concerned about the future of their funding. 'Every university, every research organization, pretty much I saw them passing through here the last two days' Issa said. Issa told CNN his message to the fearful university representatives was, 'We're going to advocate for essentials, but I sent them back and said come to me with specifics. Come to me with the grant and the justification, and I'll advocate for that. But I'm not going to advocate for no cuts; you just get more money every year. That's how we got in this problem.'
Bloomberg
an hour ago
- Bloomberg
What Trump's FEMA Cuts Mean for Hurricane Season
The Atlantic hurricane season started June 1 and is predicted to be more active than usual this year. A busy hurricane season would test the Federal Emergency Management Agency in the aftermath of President Donald Trump's dramatic cuts to its disaster programs. FEMA — the nation's top agency for response and recovery work — has endured significant upheaval since Trump's return to the White House, including firings, voluntary staff departures, grant freezes and canceled initiatives. Instead of nominating a full-term administrator to lead FEMA, which sits under the Department of Homeland Security, Trump has selected a rotating cast of interim chiefs with little disaster response experience.
Yahoo
3 hours ago
- Yahoo
Hurricane season is here. How will Trump's FEMA respond?
When you buy through links on our articles, Future and its syndication partners may earn a commission. When disaster strikes, FEMA is there. The Federal Emergency Management Agency has led America's response to storms, wildfires and other catastrophes for decades, but that is changing under President Donald Trump. As a result, coastal states may struggle as hurricane season arrives. Trump is moving to "weaken FEMA and shift disaster response to the states," said the Los Angeles Times. The president made his preferences clear after January's devastating California wildfires. "You don't need FEMA," Trump said then. "You need a good state government." Under that approach, the agency is undergoing "layoffs, budget cuts, grant cancellations and other challenges" while leaving states to fend for themselves. But California and other states are "struggling to keep pace" with more frequent and more intense disasters brought on by climate change. The president's philosophy is "on the verge of a high-stakes stress test," said Axios. FEMA appears to be "understaffed, underfunded and underprepared" for the Atlantic hurricane season. Agency officials seem to agree with that gloomy assessment. "FEMA is not ready" to respond to a big storm, they said in an internal review obtained by CNN. The United States is "becoming less ready for natural disasters," said The Washington Post editorial board. It's not just FEMA. The White House is "gutting" the National Oceanic and Atmospheric Administration, which "monitors weather, conducts climate research and maintains intricate forecast models" that help communities prepare for severe weather. The Trump administration has also "repeatedly denied federal aid to disaster-stricken regions" like Arkansas after it experienced tornadoes. Republicans in Congress must push back. "Americans need a government that cares about their safety," the outlet added. It is "appealing" to say that FEMA's work should be "left to states and localities," said Donald F. Kettl at Governing. But those levels of government "aren't up to the job" of disaster response. The creation of FEMA in 1979 was the result of a "long historical process" during which federal officials decided that "preserving local communities was too important a job to be left to them alone." Trump administration officials will likely realize that lesson anew when the next big storm strikes and they find it "politically impossible" to "shrug off local calls for help because of some notion that it's simply a local problem." Kristi Noem, secretary of the Department of Homeland Security, told Congress on Tuesday that FEMA should be reformed to "increase the burden on states to respond to natural disasters," Reuters said. The aim is to have states "manage their emergencies and we come in and support them," she said. But state and local governments are "already in charge of disasters," said NPR. FEMA only comes in to help when requested by a state government. Without federal support, states would have to hire "thousands of additional personnel" and "face billions of dollars in recovery costs" when disaster strikes. As hurricane season arrives, "states aren't prepared" for that responsibility.
