The recent outbreak of fires in Los Angeles (LA) have amounted to an estimated economic loss of $250 billion, making it the costliest natural disaster in United States (U.S.) history. The fires first spread through neighborhoods in Pacific Palisades, Altadena and Malibu, and over the past three weeks, firefighters have battled these fires.
With these fires spreading — threatening communities in Ventura County, Brentwood and Bel-Air — LA County firefighters have reported over 5,300 destroyed structures in the Palisades and 5,000 structures consumed by the blaze of the Eaton Fire. As of Sunday, Jan. 26, the Palisades Fire — which has burned over 23,400 acres — is 84 percent contained and the Eaton fire which has destroyed over 14,000 acres, is 95 percent containment.

Courtesy of NBC
In response to the LA wildfires, California State Gov. Gavin Newsom continues to issue legislative orders aimed at providing relief to those affected by the fire. On Jan. 8, Gov. Newsom secured a Major Disaster Declaration from Former President Joe Biden, which qualifies residents and businesses in affected areas for tax relief.
Later that week, he announced that the California Franchise Tax Board will provide a state disaster tax relief for any affected business and taxpayers. The legislation offers affected taxpayers an extension for tax payments and filing of 2024 tax returns, originally due between Jan. 7 and Oct. 15, 2025. This also includes an extension on tax returns and payments typically due on April 15 as well as quarterly tax payments due on the fifteenth of January, April, June and September of 2025.
On Jan, 12, Gov. Newsom also issued an executive order to expedite the rebuilding of businesses and homes destroyed by the fire. This legislation temporarily waived the California Environmental Quality Act and the California Coastal Act — both of which were designed to safeguard natural resources.
Additionally, Gov. Newsom signed an executive order to restore any damaged properties, allowing federal hazardous material teams to promptly begin debris removal. On Jan. 23, Gov. Newsom joined city legislative officials in Altadena to sign legislation allocating $2.5 billion for disaster relief. Gov. Newsom also claimed that he plans to direct “millions of dollars” to support local governments in speeding up building approvals for homes lost in the fire.
The $2.5 billion that were allocated to expedite firestorm recovery will fund any emergency protective measures, shelters for survivors and assessment of post fire hazard. The legislation also includes allocating $4 million to impacted local governments that will provide resources for building inspection of affected homes, and allocating $1 million to rebuild any damaged school facilities.
Amid these efforts, JP Morgan analysts estimate that the insurance industry will face a hit, with losses starting at $8 billion. As multiple insurance companies announced they will not be renewing their policies, many California homeowners are left uninsured. Meanwhile, the California Fair Plan policy provides basic fire insurance coverage for homeowners in high risk areas, capping the insurance payments for natural disasters at $3 million.
On Jan. 8, California State Insurance Commissioner Ricardo Lara announced that he would prevent insurance companies from canceling policies in wildfire impacted areas. However, no further actions have been taken to ensure that property owners in these areas are reimbursed, leading many to turn to the California Fair Plan and private insurance companies.
While Los Angeles addresses the impacts of recent wildfires, the city is also preparing to host several global events in the upcoming years, including the 2026 FIFA World Cup, the 2027 Super Bowl and the 2028 Summer Olympics.

Courtesy of LA Times
Despite the Palisades Fire coming close to the Riviera Country Club — where the Olympic golf competitions are set to take place — the venue remains undamaged. Paul Krekorian, a spokesperson for the LA Olympic Committee, stated that there will be no delays for the 2028 Olympics. The city continues its preparations for these highly anticipated events, solidifying LA as a global hub for entertainment.