President-elect Donald Trump has repeatedly said that the Federal Emergency Management Agency has "no money" as several wildfires have ravaged the Los Angeles area. However, FEMA said it has more than $25 billion in its disaster relief fund.
Why It Matters
FEMA will be among the federal agencies responsible for helping the recovery efforts for Californians affected by the Palisades, Eaton, Hurst and Lidia fires in the Los Angeles area.
At least five people have been killed in the fires so far, the Associated Press reported.
Over 100,000 residents have been ordered to evacuate as the blazes destroy parts of California's most populous county. The fires destroyed thousands of homes and other structures, causing billions of dollars worth of damage.
What To Know
Trump most recently shared his claim that FEMA is running out of money in a post on Truth Social Thursday morning. No evidence has been presented to suggest this claim.
"Fire is spreading rapidly for 3 days — ZERO CONTAINMENT. Nobody has ever seen such failed numbers before! Gross incompetence by Gavin Newscum and Karen Bass....And Biden's FEMA has no money — all wasted on the Green New Scam! L.A. is a total wipeout!!!" he wrote.
A FEMA spokesperson told Newsweek there is about $27 billion in the Disaster Relief Fund that will be available to help Californians recover from the fire after Congress passed a temporary funding bill that restored those funds.
"Thanks to Congress's recent passage of a disaster supplemental, FEMA has the funding and resources needed to respond to the needs of California. The current balance of the Disaster Relief Fund is approximately $27 billion," the spokesperson said in a statement.
It's unclear whether that will cover the damage caused by the fires. AccuWeather's preliminary estimate of the total damage and economic loss caused by the fires was $52 to $57 billion on Wednesday.
A White House spokesperson also told Newsweek that Trump's comment was "false."
The Palisades fire and Eaton fire, the two largest, have burned nearly 28,000 acres combined, and both are at zero percent contained as of Thursday morning, according to the California Department of Forestry and Fire Protection.
The fires have been especially powerful due to dry conditions and the powerful Santa Ana winds.
When reached by Newsweek, a Trump transition spokesperson said that Trump signed an order to redirect water to the Central Valley and Southern California but was sued by Governor Gavin Newsom and that the FEMA funding "was for communities that were long overdue disaster assistance."
Get real-time updates, critical information and on-the-ground insights as California battles devastating wildfires with Newsweek's live blog.
Joe Biden Declares Disaster Emergency: How To Apply For Aid
President Joe Biden announced a Major Disaster declaration for the areas affected by the wildfires, freeing up some federal funds to help residents begin the recovery process. FEMA also approved the Fire Management Assistance Grants to reimburse California for firefighting costs, according to a White House statement.
The statement didn't say how much funding Californians will have access to amid the wildfires. It's unclear at this point whether Congress will consider any supplemental aid to California.
Anyone who suffered losses due to the fire can apply for assistance at www.DisasterAssistance.gov, using the FEMA app, or calling 1-800-621-3362.
FEMA Funding Included In Temporary Funding Bill After Hurricane Concerns
Congress included $110 billion in disaster relief assistance for states affected by hurricanes Helene and Milton and other natural disasters. The funding included $29 billion for FEMA's disaster relief fund, which was depleted as FEMA sought to deliver aid to residents affected by those hurricanes.
President Biden initially requested $40 billion for the relief fund, warning that FEMA could face a budget shortfall without the funding.
There were concerns about FEMA funding last year after the agency spent $9 billion on hurricane relief in the first eight days of the fiscal year—nearly half the $20 billion allocated by Congress to carry the agency through the end of September 2025.
"We are meeting the immediate needs with the money that we have. We are expecting another hurricane hitting. FEMA does not have the funds to make it through the season," Homeland Security Secretary Alejandro Mayorkas told reporters on October 2, just two days after the fiscal year began, reported the Associated Press.
Even when the disaster relief fund may not be enough to address concerns right after a disaster, the agency has access to Immediate Need Funding for "lifesaving
and life-sustaining activities."
"Under INF, FEMA prioritizes response and urgent recovery efforts without any
interruption. However, new obligations not necessary for lifesaving and life-sustaining activities will be paused," FEMA guidance reads.
What People Are Saying
California Governor Gavin Newsom, in a statement: "The situation in Los Angeles is highly dangerous and rapidly evolving. President Biden's swift action is a huge lift for California — as we throw everything we can into protecting residents with substantial state, local and federal resources. To all those in Southern California, please continue to listen to local authorities and don't wait, evacuate if asked."
FEMA Administrator Deanne Criswell, on CNN: "What we need to work on now from the FEMA perspective is how do we help those people who have lost everything? How do we help them understand what's going to be the next step of the process? How do we help them understand how they're going to jump-start their recovery now that they have lost everything?"
The National Weather Service previously told Newsweek:"The combination of destructive Santa Ana winds with the very dry conditions, from the lack of precipitation over the last several months and ongoing drought, has set the stage for this. Extreme fire weather threats mean the high potential for very rapid fire spread and erratic and life-threatening fire behavior with any new fire ignitions.
"We urge those in Southern California to follow the evolving forecast and instructions from emergency officials."
What Happens Next
The fires continue to burn in Southern California as of this article's publication.
Firefighting efforts are expected to continue amid efforts to quell the fires. The Santa Ana winds could subside on Friday, potentially relieving residents and making it less challenging for firefighters battling the blazes.
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