Addressing State and Local Failures To Rebuild Los Angeles After Wildfire Disasters
The order directs FEMA and the Small Business Administration to consider issuing regulations that would preempt state and local permitting requirements found to obstruct LA wildfire survivors from using federal disaster funds to rebuild, replacing those requirements with a builder self-certification process.
It also mandates a federal audit of nearly $3 billion in California hazard mitigation grants and directs agencies to expedite environmental, historic preservation, and natural resource law waivers for federally funded reconstruction in the Pacific Palisades and Eaton Canyon areas.
What this order does
What it orders
The order directs FEMA and the SBA to consider promulgating regulations that would preempt state or local permitting processes found to unduly impede use of federal disaster funds, replacing them with a system requiring builders to self-certify compliance with applicable health and safety standards. Agencies must also expedite waivers, permits, reviews, and approvals under federal environmental and historic preservation laws for federally funded rebuilding projects. Each relevant agency must designate a senior official to ensure timely execution, and FEMA and SBA must submit legislative proposals to the President outlining tools to address state and local barriers to disaster recovery.
The order further requires FEMA to audit California's use of federal Hazard Mitigation Grant Program funds — determining within 30 days whether any of nearly $3 billion was awarded improperly, and conducting a fuller audit within 60 days. Based on audit findings, FEMA may impose future grant conditions, initiate recoupment actions, or deploy oversight assistance. Critically, the preemption of state permitting is not self-executing — it depends on regulations that agencies are directed to *consider* and, if issued, publish on an accelerated schedule.
Who it affects
Homeowners, small businesses, and houses of worship in the Pacific Palisades and Eaton Canyon wildfire areas seeking to rebuild using federal disaster funds; the State of California and Los Angeles city and county governments whose permitting authority may be preempted; and federal agencies administering disaster relief and hazard mitigation grants.
Why it matters
Wildfire survivors who have been unable to rebuild due to permitting delays could gain a faster path through a federal self-certification process if regulations are finalized. California also faces a formal audit of billions in federal grant funds, with potential recoupment actions or future grant restrictions if misuse is found.
What must happen and when
How the order is supposed to work
FEMA and SBA must each decide within 30 days whether to issue proposed rules preempting state and local permitting — final rules must follow within 90 days of signing. Agencies may forgo notice-and-comment if legally justified. FEMA separately runs a two-stage audit of California's hazard mitigation grants, then has 30 days post-audit to impose grant conditions or initiate recoupment. Each relevant agency must designate a senior official to drive timely implementation. FEMA and SBA must also send the President legislative proposals within 90 days to address future state obstruction of disaster recovery.
Actions and deadlines
- Publish proposed regulations, if any, preempting state and local permitting that obstructs use of federal disaster funds
- Publish final regulations, if any, replacing preempted permitting regimes with builder self-certification
- Determine what amount of nearly $3 billion in California HMGP funding was awarded arbitrarily, capriciously, or contrary to law
- Conduct a federal audit of California's use of Hazard Mitigation Grant Program funding
- Make administrative determinations based on audit findings and enforce them through grant conditions, recoupment, or oversight
- Submit legislative proposals to the President enabling FEMA and SBA to address state and local barriers to disaster recovery
- Each relevant agency head designates a senior official to ensure timely execution of expedited permitting actions