Federal agencies would speed rebuilding after Los Angeles wildfires

FEMA and SBA must consider proposing rules to preempt state or local permit steps that have delayed federally funded rebuilding. The possible rules would cover homes, businesses, and houses of worship rebuilt with federal emergency-relief funds after disasters, including in the Pacific Palisades and Eaton Canyon areas. Builders would need to self-certify compliance with applicable state and local health and safety standards to a federal agency official. FEMA would continue reviewing construction for health, safety, and other required standards. Any rules must follow existing law and available funding. If agencies propose rules, proposed rules are due within 30 days after January 23, 2026, and final rules within 90 days after that date.

Relevant federal agencies must seek to speed their environmental, historic-preservation, natural-resource, and other reviews for rebuilding projects. The direction covers homes, businesses, and similar structures being rebuilt with federal emergency-relief funds in support of recovery after the Pacific Palisades and Eaton Canyon wildfires. Agencies must act consistently with applicable law and public safety. Review processes should be limited to the minimum scope and duration needed to advance recovery and carry out federal disaster-assistance programs. Each relevant agency must name a senior official to oversee timely action. The direction applies while agencies process the waivers, permits, reviews, consultations, or approvals needed for covered recovery work.

FEMA must determine whether some unused California hazard-mitigation grants were awarded unlawfully or arbitrarily, and must audit how California used those funds. The review covers nearly $3 billion in California Hazard Mitigation Grant Program funding, including whether approved projects were completed on time and reduced wildfire risks as expected. After the audit, FEMA may impose future grant conditions, seek repayment under applicable law, or provide oversight and technical help. The order does not itself find that California misused funds or require repayment. FEMA must make the initial determination within 30 days after January 23, 2026, complete the audit within 60 days, and act within 30 days after the audit is completed.

FEMA and SBA must submit proposed legislation to the President through the Office of Management and Budget. The proposals must address situations in which states or local governments are not enabling timely recovery after disasters, including through possible federal regulations. Submitting proposals does not enact new law or require Congress to approve them. The proposals must be prepared in consultation with specified White House officials. The proposals are due within 90 days after January 23, 2026.