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EnvironmentCalifornia

Gov. Gavin Newsom vows ‘Marshall Plan’ and suspends environmental laws to help rebuild LA after wildfires

Jason Ma
By
Jason Ma
Jason Ma
Weekend Editor
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Jason Ma
By
Jason Ma
Jason Ma
Weekend Editor
Down Arrow Button Icon
January 12, 2025, 4:39 PM ET
California Gov. Gavin Newsom, left, surveys damage in Pacific Palisades with CalFire's Nick Schuler, center, and Sen. Alex Padilla on Wednesday.
California Gov. Gavin Newsom, left, surveys damage in Pacific Palisades with CalFire's Nick Schuler, center, and Sen. Alex Padilla on Wednesday.Jeff Gritchen—MediaNews Group/Orange County Register via Getty Images
  • The leaders of California and Los Angeles are already looking ahead to rebuilding after what’s already one of the costliest wildfires in U.S. history. Gov. Gavin Newsom hinted at a “Marshall Plan,” and Mayor Karen Bass vowed to clear red tape.

Wildfires are still burning in the Los Angeles area, but state and city leaders are already looking ahead to rebuilding efforts.

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On Sunday, Gov. Gavin Newsom signed an executive order to suspend portions of the California Environmental Quality Act and the California Coastal Act for fire victims planning to start over with their homes or businesses.

“I’m worried about time to getting these projects done,” he told NBC’s Meet the Press in an interview in Altadena. “And so we want to fast-track by eliminating any CEQA requirements. Any Coastal Act changes that we’re making. I want to make sure when someone rebuilds that they have their old property tax assessments and that they’re not increased.”

Both the CEQA and Coastal Act date back to the 1970s amid the burgeoning environmental movement, and the former was temporarily suspended during the pandemic as well.

But as California’s housing crisis has worsened in recent years, the laws have been criticized as tools for NIMBYs to stop development.

Newsom said he won’t give up California’s leadership on the environment but wants to avoid delays.

“Don’t walk away because we want you to come back, rebuild, and rebuild with higher quality-building standards, more modern standards,” he added. “We want to make sure that the associated costs with that are not disproportionate, especially in a middle-class community like this.”

About 12,000 structures have been damaged or destroyed. The latest estimate from AccuWeather puts damages at $135 billion-$150 billion, making it one of the worst wildfires in modern U.S. history. Meanwhile, families are weighing whether they can rebuild their homes.

In addition to the immediate housing needs of thousands people who have been displaced by the fires, the city is due to host major sporting events in the coming years.

In 2026, World Cup games will be played in LA. In 2027, the Super Bowl will come to the city. And in 2028, LA will host the Summer Olympics. Newsom said those events are opportunities for the city and state to shine.

“And that’s why we’re already organizing a Marshall Plan,” he added, alluding to the U.S. effort to rebuild Europe after World War II. “We already have a team looking at reimagining L.A. 2.0, and we are making sure everyone’s included, not just the folks on the coast, people here that were ravaged by this disaster.”

The effort involves city leaders, businesses, nonprofits, and labor unions, according to Newsom. The groups are starting look at how to organize individuals on philanthropy, how to organize the region, and how to seek federal assistance for the Olympics as well as federal assistance for recovery efforts, he explained.

Similarly, L.A. Mayor Karen Bass promised to ease rebuilding efforts by “turning away from the usual city system.”

“We are going to clear the red tape and unnecessary delays, cost and headaches that people experience in ordinary times so that we can rebuild your homes quickly,” she said at a briefing on Thursday. “We’re going to clear the way to rapidly rebuild our neighborhood infrastructure — which means roads, sidewalks, streetlights and utilities. We will clear the way to rebuild and open our small businesses and provide assistance to make it through.”

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter will deliver clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
About the Author
Jason Ma
By Jason MaWeekend Editor

Jason Ma is the weekend editor at Fortune, where he covers markets, the economy, finance, and housing.

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