LA wildfire survivors losing vital recovery aid months early as federal payments stall

Survivors of the devastating Los Angeles wildfires last year are losing access to a key resource earlier than expected after payments from the Federal Emergency Management Agency (FEMA) to California stalled.

The Disaster Case Management Program, which helps Eaton and Palisades fire survivors access recovery resources and navigate the federal emergency reimbursement process, will expire at the end of September instead of the intended 2028 end date.

The program has been vital for many who are recovering from the fires, by helping with FEMA aid, Small Business Administration loans, insurance claims, temporary housing and more.

The state blamed the federal government for the early termination, according to a letter by the California Department of Social Services to the nonprofit overseeing the program.

“Unfortunately, the federal administration and the Federal Emergency Management Agency (FEMA) have not issued CDSS the funding necessary to support program operations beyond September 30, 2026, and have not been responsive to payment requests or inquiries on payment status,” said the letter, seen by the Los Angeles Times.

A spokesperson for FEMA told the Times that California has plenty of disaster relief money.

“As of June 12, 2026, FEMA awarded more than $177.1 million in assistance to 35,155 eligible individuals and households,” the spokesperson said. “This includes Continued Temporary Housing Assistance for 1,221 applicants, with 347 applicants currently receiving continued assistance and an additional 200 applicants pending assistance.”

California has “over $2B in unspent disaster funds across all open disasters,” the federal agency added.

California Gov. Gavin Newsom and President Donald Trump have long tussled over the flow of federal aid to the state. Earlier this year, Newsom’s office begged Trump to do something about it.

“Mr. President, please actually help us. We are begging you. Release the federal disaster aid you’re withholding that will help communities rebuild their homes, schools, parks, and infrastructure,” the governor’s office said.

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California had submitted more than $1.5 billion for FEMA reimbursement from the Eaton and Palisades fires, but only $37 million in funding had been approved, according to the governor’s office.

The federal government has still not appropriated more than $15 billion in long-term recovery funds, LAist reported.

Democrats have accused Trump of using wildfire aid as a bargaining chip. The Trump administration, meanwhile, insists it is taking care of wildfire survivors and in many cases has attempted to directly help them instead of through the state.

“President Trump’s historic leadership following the LA wildfires led to the fastest hazardous debris removal operation in history,” a White House spokesperson had said when Newsom accused Trump officials of turning down meetings. “This has played a critical role in helping communities recover from tragedy.”

“And when Democrat politicians and bureaucrats said something like this was impossible, President Trump found a solution.”

Ann Lee, a nonprofit leader assisting in the wildfire recovery, told the Times that with the program’s expiration, workers are beginning to have to tell survivors they won’t be able to help them anymore.

“You have all these people who’ve been struggling for the last few years, trying to just make it, and now we have to tell them ‘sorry, just 30 days from now, we got to stop helping you’,” she said. “It’s a horrible feeling.”