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State sends wildfire aid to low-income housing while fire victims fight for their homes

October 19, 2026
in News
State sends wildfire aid to low-income housing while fire victims fight for their homes

California officials used federal funding meant to help wildfire victims rebuild, and spent it on low-income housing instead. 

That’s the bombshell revelation in a new report by The California Post. And it confirms the worst suspicions of fire-ravaged communities that have wondered whether state officials ever intended to help them, or simply saw their suffering as an opportunity to exploit.

Beginning with the devastating Camp Fire and Woolsey Fire in 2018, the U.S. Department of Housing and Urban Development (HUD) allocated almost a billion dollars to California.

California Governor Gavin Newsom speaks on a campaign stop with Democratic U.S. Senate candidate for New Hampshire Chris Pappas in front of an American flag.
California officials used federal funding meant to help wildfire victims rebuild, and spent it on low-income housing instead.  AFP via Getty Images
An aerial view of the home of Caleb and Mary Jo Deschanel under construction after being destroyed by the Palisades fire.
That’s the bombshell revelation in a new report by The California Post. And it confirms the worst suspicions of fire-ravaged communities that have wondered whether state officials ever intended to help them, or simply saw their suffering as an opportunity to exploit. CA Post
Sue Pascoe stands in front of her home under construction in Pacific Palisades, California.
Jeremy Padawer and Sue Pascoe, who lost their homes in the Palisades Fire, pose in Pacific Palisades, California, Thursday, June 25, 2026. Jonathan Alcorn for CA Post

The money was meant to help rebuild homes, provide affordable rental housing, and repair infrastructure.

But the state allocated $368.7 million to developers to build dense, low-income housing projects, without any guarantee fire victims would benefit.

To this day, there are families who have not returned home. Some lived in trailers on their lots until local officials ordered them removed, and others don’t have the money to rebuild.

The push for low-income housing accomplishes three ideological goals. One, it redistributes property from those who had it to those who do not.

Two, it satisfies a “green” agenda that sees single-family homes as a sign of wasteful sprawl.

And three, it allows politicians to claim they are doing something about the state’s housing crisis.

Aerial view of homes being rebuilt along the coast in Pacific Palisades, California.
The money was meant to help rebuild homes, provide affordable rental housing, and repair infrastructure. Andy Johnstone for CA Post
A homeless man lies under an umbrella and blankets on a concrete ledge in a cul-de-sac.
The push for low-income housing accomplishes three ideological goals. One, it redistributes property from those who had it to those who do not. Jonathan Alcorn for CA Post

But none of that is the purpose of the funding, which taxpayers provided to help rebuild communities that had been destroyed through no fault of their own.

It is no longer a conspiracy theory to say that some policymakers would rather see residents of destroyed communities replaced by dense developments than to see them safely restored to their homes.

We hear a lot from California Governor Gavin Newsom about how he is not to blame for the fact that President Donald Trump and the Republican Congress have yet to provide additional funding for rebuilding after the devastating LA wildfires in 2025.

But perhaps Washington has been reluctant for good reason: Americans cannot trust that California will spend the money properly.

We have noted before that politics should never get in the way of emergency relief. This it about getting politics out of fire aid. California politicians are the ones who have misallocated fire relief funds.

The saddest part of this story is that the need is still urgent. Thousands of fire victims still need help. And the federal government should provide it. But strict oversight should come along with it.

The post State sends wildfire aid to low-income housing while fire victims fight for their homes appeared first on New York Post.

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