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Gavin Newsom expands California’s housing assistance program

Democratic Gov. Gavin Newsom is taking a direct shot at the Trump administration, expanding the federal mortgage assistance program to $100,000 per household while accusing the White House of “turning away” California wildfire survivors.

On Thursday, Newsom announced that disaster-affected homeowners are now eligible for full 12-month mortgage payment assistance, a significant increase from three months ago, with a total increase to $100,000.

Maximum assistance per household increased from the original $20,000. According to a government press release, these funds are unpaid grants and payments that go directly to housing providers.

So far, $6.5 million has allegedly been paid to 793 recipients, mostly from the Palisades and Eaton fires, leaving most of the fund’s $1 billion budget available.

CALIFORNIANS ARE FACED WITH A PAINFUL CHOICE ONE YEAR AFTER THE LOS ANGELES FIRES DESTROYED THEIR LIVES.

Gov. Newsom’s office did not immediately respond to Fox News Digital’s request for comment.

Gavin Newsom, governor of California, attended the 62nd Munich Security Conference on Feb. 13, 2026. (Kay Nietfeld/photo alliance via Getty Images)

The move reflects an aggressive move by Sacramento to bypass the state’s frozen disaster package and provide direct financing to high-income homeowners.

In a press conference, Newsom also called President Trump’s response “a lie” and a “disgrace” as the country tries to fill an apparent gap in federal aid.

“We’ve been on the ground, listening and adjusting to meet people’s changing needs. That’s why we’re expanding this program — to bridge the gap between relief and long-term recovery and make sure people get the help they need to move forward,” Newsom said.

But government officials at the Small Business Administration and the White House say that $3.2 billion in federal loans have already been approved but are being held back by California’s “local permits” and “red tape.”

SBA Director Kelly Loeffler previously called the state of California’s backlog of permits a “nightmare” that has led to wildfire renewal.

“With the leadership of President Trump and the EPA, the SBA is paving the way for every borrower caught by the office of Gavin Newsom and Karen Bass,” Loeffler said.

Although the Palisades and Eaton fires were extinguished by the end of January 2025, the Los Angeles County Economic Development Corporation reports that they caused. up to $53.8 billion in property damage alone.

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The department’s study also found incredibly high destruction rates, with the Palisades Fire destroying 56.3% of all buildings surveyed 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 lending institutions have agreed to offer forbearance advice for 90 days beyond the legally required 12 months; and the state has mandated the use of retrofit funds to promote “all-electric” homes, costing anywhere from $3,000 to $10,000 less than gasoline-powered homes but meeting California’s climate guidelines.

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Amanda Macias of Fox News contributed to this report.

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