Governor Newsom signs wildfire recovery package to strengthen protections and focus on rebuilding for survivors
The legislation builds on California’s ongoing recovery efforts in Los Angeles, where the state has worked with survivors, local governments and community partners to accelerate debris removal, permitting and rebuilding while providing mortgage relief and other assistance.
First-in-the-nation science-backed standards for smoke damage claims
The Department of Insurance estimates that more than 13,000 of the roughly 40,000 insurance claims filed after the January 2025 fires involve smoke damage to homes that never burned. Until now, no state in the country had enforceable standards for how those homes should be tested, cleaned, or restored. Assembly Bills 1642 (Harabedian) and 1795 (Gipson) create first-in-the-nation standards for smoke damage claims. The legislation directs the Department of Toxic Substances Control (DTSC) and the California Air Resources Board to develop the state’s first protections for testing, remediation, and restoration of lead and asbestos contamination from wildfire smoke, for homes within a fire’s zip codes. It also requires DTSC to issue guidance to help schools recover after a wildfire. The legislation also requires insurers to pay for lead and asbestos testing and remediation in smoke-damaged homes within a wildfire zone, cover full cleanup and restoration to pre-loss condition, and bars insurers from cutting off Additional Living Expense coverage until a home is actually remediated and safe to occupy.
“Twenty months since the Eaton Fire tore through my community, too many of my neighbors are still asking basic questions: is it safe to return home, and can I afford to rebuild? I’m honored to have authored first-in-the-nation legislation to help answer those questions by giving wildfire survivors scientific certainty in remediating smoke damage and providing essential mortgage relief,” said Assemblymember Harabedian. “AB 1642 will set a new national precedent on scientific standards for clearing a home for occupancy after a wildfire. Science, not an insurance company’s opinions, will determine whether a home is safe. AB 1842 creates a national model for granting mortgage forbearance to future wildfire survivors so no family has to immediately pay a mortgage for a home that no longer exists. AB 1847 extends the Mortgage Relief Act (AB 238, Harabedian) for an additional year for survivors of the Los Angeles Fires who are still desperately trying to rebuild. Thank you to Speaker Rivas for guiding this legislation and to Governor Newsom for signing it into law.”
“For homeowners who have already lost so much in a fire, the last thing a family should have to do is fight for a clear answer about whether it is safe to return home. AB 1795 puts the health and well-being of fire survivors first by requiring insurance companies to follow the science and provide Californians with the answers they deserve. Insurers, not survivors, must bear the responsibility of proving that a home is safe,” said Assemblymember Mike A. Gipson (D-Carson). “As Californians continue to face the devastating consequences of wildfires and other major fires, from the Altadena and Palisades fires to this year’s Lineage Logistics warehouse fire, I am proud that this commonsense legislation has been signed into law. AB 1795 gives survivors greater certainty, strengthens consumer protections, and makes clear what Californians can expect from their insurers when disaster strikes.”
More time, more flexibility on mortgages
For survivors still paying a mortgage on a home they can’t live in, Assembly Bills 1842 and 1847 (Harabedian) give families a path away from foreclosure and help them keep their homes. The legislation makes permanent the kind of mortgage forbearance protections the Governor secured directly from loan servicers after the LA fires — automatic protections and processes in law following a disaster to provide borrowers a path away from foreclosure. This landmark legislation also doubles the mortgage forbearance window available by law for LA fire survivors, from 12 months to 24 months, and requires servicers to offer borrowers the option to defer repayment of missed payments until the end of the loan, unless prohibited by investor contract terms or servicing guidelines.
Coupled with these new laws, the Newsom administration continues to support survivors through the CalAssist Mortgage Fund, which provides survivors up to 12 months and $100,000 in mortgage relief that never has to be repaid. And the Governor and the Legislature are working to close the gap between what insurance companies will pay out and the cost of rebuilding through the recently appropriated $100 million Disaster Rebuilding Fund, which will make loans for rebuilding more accessible and affordable.
California remains alongside survivors
These unprecedented new laws build on relief California has already delivered to help Los Angeles fire survivors stay in their homes and rebuild.
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Crushing red tape with unprecedented action: Since the 2025 Los Angeles fires, California has worked to cut red tape, speed rebuilding, and support survivors through every stage of recovery. The Governor has issued 28 executive orders to expedite recovery, including streamlining or suspending barriers under the California Environmental Quality Act and the Coastal Act, accelerating debris removal and rebuilding, expanding temporary housing options, extending regulatory relief, protecting tenants, and strengthening safeguards against price gouging and predatory real estate speculation. While the state does not issue local building permits, the Governor’s actions are directly enabling historic local results, including 8,450 permits issued by local building departments as of this week.
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Investing directly in faster permitting: The state has moved aggressively to empower local governments by providing millions of dollars in direct grants to expand permitting staffing, modernize systems, and accelerate plan review and permitting. The state helped deploy Archistar, a cutting-edge AI-driven plan-check tool that allows homeowners to identify design and code issues before submitting applications — reducing costs, eliminating weeks or months of back-and-forth, and dramatically speeding approvals.
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Relief for homeowners: Last year, Governor Newsom signed AB 238 to provide eligible homeowners with up to one year of mortgage forbearance, launched a $125 million state mortgage relief fund covering up to $100,000 per homeowner, and worked directly with lenders to extend forbearance windows. The state also funded pre-approved, low-cost home designs tailored to the architectural character of affected communities — allowing permits to be issued in a fraction of the time. As of March 2026, nearly 42,000 insurance claims have been filed, with more than 40,000 at least partially paid, totaling $23.7 billion, according to the California Department of Insurance.
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Protecting communities from exploitation: Governor Newsom has enforced and strengthened price-gouging protections, cracked down on illegal and predatory land speculation, and expanded consumer protections to prevent families from being exploited.
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Debris removal and community recovery: In partnership with the federal government, California helped deliver the fastest debris removal in state history, clearing the way for rebuilding at record speed. This work began under the Biden Administration. The state has provided assistance to schools, childcare providers, small businesses, and workers impacted by the fires.
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