California Democrats plan to tap new climate bond for LA wildfire recovery

As wildfires continue to devastate Los Angeles, state Democrats are planning to tap $1.5 billion in bonds for wildfire preparedness just months after voters approved a landmark debt-spending plan for climate projects, as part of a special legislative session originally convened last month to counter the incoming Trump administration.

Gov. Gavin Newsom on Monday requested $2.5 billion from state lawmakers to fund the battle against the Southern California firestorm and prevent new fires from spreading. Of that, about $1.5 billion would fund wildfire resilience projects, Senate President Mike McGuire of Santa Rosa, a Democrat, told reporters Monday.

If Democrats follow through with the plan, it will be the first use of Proposition 4, a $10 billion bond for projects to address climate change that nearly 60% of voters approved in November. Initially, Newsom planned to tap those funds later this year or in 2026.

Proposition 4 authorized California to issue $10 billion in debt to fund water, wildfire and clean energy projects. The $1.5 billion earmarked for wildfire preparedness was intended to fund forest thinning and controlled burning, which slow the spread of intense wildfires.

A slew of fire-preparation projects in the Los Angeles area will be funded by the climate bond, McGuire said: dead tree removal, managing dry vegetation that could burst into brush fires, and building firebreaks and “defensible space” around homes and businesses.

“There is nothing more urgent than expediting financial assistance that will kickstart the cleanup and recovery of Southern California neighborhoods and allow folks to be able to start rebuilding their lives, just as we have done in Northern California,” said McGuire, whose district was devastated by the Wine Country wildfires in 2017.

Lawmakers said details are still emerging, and it’s not clear if Democrats intend to spend all of the wildfire resilience funds authorized by Proposition 4 solely on the devastation in Los Angeles.

State Sen. Dave Cortese, a San Jose Democrat, said it’s apparent that all the bond funding lawmakers do tap will be spent in Southern California this year. The disaster could be the most expensive wildfire in American history. However, Cortese said lawmakers could reimburse the climate bond later.

“You can’t just take all fire resilience money that has been approved by all voters in California … and dump it into one region,” Cortese said. “We’re quite aware that we’ll have to balance that out in the months and years to come.”

Other Bay Area Democrats said they’ll be closely watching the plan to tap the new climate bond.

“Right now, there’s no lack of sympathy from the Bay Area that our LA neighbors are hurting,” said Assemblymember Alex Lee of Milpitas. “But we want to make sure that it’s done fairly and responsibly and that there’s accountability.”

“Any bond funds that are used will follow the language approved by the voters and not negatively impact other areas of the state,” Sen. Josh Becker, a Menlo Park Democrat, said in a statement.

In Newsom’s plan, another $1 billion in emergency response funds would fund cleanup costs, such as removing hazardous waste like scorched oil and car batteries from burned-over properties, McGuire said. That spending “should be eligible for reimbursement” by the Federal Emergency Management Agency, Newsom’s office said in a press release.

Newsom’s proposal expands the scope of the ongoing special session of the Legislature, which at first was focused on “Trump-proofing” California.

Democrats have also negotiated a $50 million legal fund for immigrants and litigation against the administration of President-elect Donald Trump, who is to be inaugurated Monday. The incoming Republican has promised to carry out mass deportations and recently blamed Newsom and local Democrats for the wildfires that have burned thousands of homes in the Los Angeles region, leaving at least 24 confirmed dead so far.

The special session allows Newsom and his fellow Democrats, who retained their supermajority control of the Legislature in the November election, to quickly pass bills. State Republicans have criticized Democrats for combining the issues of wildfire response and preparation for the Trump administration into one special session.

“I’m encouraged that Governor Newsom heard our calls to take action on the LA wildfires in a special session,” said Senate Minority Leader Brian Jones of San Diego. “However, lumping this emergency response together with a politically motivated special session to sue Trump is unnecessary and, frankly, insulting to those struggling through this disaster.”

Lawmakers will return to the state Capitol in Sacramento on Friday morning and are expected to advance both proposals.