Trump bypasses California's 'nightmare' bureaucracy to unlock $3.2B for wildfire survivors

SBA Administrator Kelly Loeffler called California's state and local permitting backlog a "nightmare" that has dragged out wildfire recovery.

"Today, with President Trump's leadership and alongside EPA, the SBA is opening an expedited path to recovery for every borrower who has been held hostage by the bureaucracy of Gavin Newsom and Karen Bass," Loeffler said.

The new SBA guidance allows builders to self-certify compliance with state and local requirements after 60 days of permitting delays, enabling reconstruction to begin without final local approval.

Construction has begun on fewer than 600 of the homes and businesses destroyed, leaving more than 96% still untouched. Loeffler said that less than 3,000 rebuild permits have been issued across Los Angeles, and fewer than 10 homes have been resurrected. 

Under the new SBA guidance, disaster loan borrowers can bypass stalled local permitting by having their builders self-certify compliance with state and local regulations and immediately begin rebuilding.

Builders must certify to the SBA that all required permit applications were submitted more than 60 days ago, that delays are due to government inaction and that all building, health, safety, inspection and occupancy requirements will be met.

California officials say the state is pursuing its own housing initiatives after the wildfires.

Earlier this month, Newsom's office announced $107.3 million in state housing funding for communities damaged by wildfires, supporting nine projects that will create 673 new affordable rental homes across Los Angeles County. The projects will not replace homes destroyed by fire.