The Los Angeles City Council unanimously approved a $90 million subsidy program Tuesday to cover fees associated with rebuilding properties in Pacific Palisades that were damaged or destroyed in the January 2025 fire.
The council requested the City Attorney’s Office to prepare and present an ordinance that would establish the program. Rebuilding fees for all structures — single-family dwellings, duplexes, accessory dwelling units, multi-family housing, townhomes, condos and commercial buildings — would be covered within 110% of the original footprint and for the same use.
City Administrative Officer Matt Szabo estimated the cost of the program at approximately $90 million, not including the costs of borrowing, according to his report. Property owners would be liable for fees in excess of the 110% rebuild/repair scale.
Council members instructed Szabo and his office to recommend a funding strategy to them and Mayor Karen Bass, which should be included in the budget for fiscal year 2026 and 2027 with the goal of paying the cost back to $30 million per year over the course of three years.
Ongoing review of the program would be provided on a quarterly basis via the city’s financial status report.
The council also approved an amendment introduced by Councilwoman Monica Rodriguez, who called for a guardrail to ensure taxpayer funds are used for rebuilding and recovery.
“This is not a fee waiver. It’s a fee subsidy of what we’re providing in help to aid the recovery of this area,” Rodriguez said. “My amendment is simply to ensure that we’re trying to ensure the people would be required to reimburse the city and taxpayers for the subsidy should the owner sell the property before the certificate of occupancy is issued.”
Rodriguez said she worked with Councilwoman Traci Park, who represents Pacific Palisades, and spoke with many of her constituents on the amendment.
The vote came after more than 20 Palisades residents and fire survivors urged the City Council to approve the aid.
“I lost my home in the fire, and I’ll be displaced for another three years. I’m asking you to approve the fee waiver for all buildings destroyed by the fire,” Mark Smith said. “… Disaster can strike any time, anywhere, and in many cases districts will require city support. When that time comes, your constituents will expect the same assistance that we’re asking for in our time of need.
“This isn’t about revenue to the city. This is about humanity, equity and the opportunity to do what you know is ethically and morally right,” Smith added. “We are all in this together. We are one city.”
Following the fire that devastated the coastal community, Bass ordered city departments to refrain from collecting permit and plan check fees associated with the repair or reconstruction of homes in the area, pending City Council action to waive the fees. The mayor’s order asked the city attorney to prepare and present an ordinance to the council, codifying the ability to waive fees.
Bass’ emergency executive order aimed to further a motion introduced by Park, who called for a waiver of the fees in the immediate aftermath of the fire. The council previously delayed a vote on the proposal until this week, with some members citing fiscal concerns.
On Monday, Bass delivered what she called a State of the City Address, in which she spoke on unity as the city nears the start of mega events such as the 2026 World Cup, 2027 Super Bowl and 2028 Olympic Games.
Among her remarks, she vowed to restore Pacific Palisades, and said 400 homes were under construction with hundreds more approved and ready to be built.
Fire survivors and other critics have argued that the city’s planning and zoning processes are slowing down construction and the rebuilding of the community.
President Donald Trump announced an executive order in January that aims to “cut through bureaucratic red tape and speed up reconstruction in the Pacific Palisades and Eaton Canyon areas one year after devastating wildfires destroyed nearly 40,000 acres of homes and businesses,” according to the White House.
The president has blamed Democratic political figures for what he called the slow pace of rebuilding.
I don’t think this will move anyone faster along in their construction or going to change much of anything. A number of those people are selling their properties, the insurance companies are still moving way to slow, and who’s paying for the 90 million plus but the rest of the taxpayers who are tax through the roof to begin with. The council couldn’t find money for LAPD 4.5 million for a new recruit class. But we could help give the wealthy people a nice gift. I guess that should keep the campaign contribution coming in,
In December 2025, Los Angeles Mayor Karen Bass requested $4.4 million in emergency funding to prevent a total halt in LAPD hiring by January 2026.
Key updates regarding this funding include:
Initial Approval: In mid-December 2025, the City Council initially approved a smaller $1 million “stopgap” measure. This was intended only to cover the immediate costs for new recruits in January and February while a longer-term plan was discussed.
Expansion in 2026: By late January 2026, the council increased this commitment to approximately $2.7 million to $3 million to ensure academy classes could continue without interruption for the rest of the fiscal year.
Projected Total Costs: While the immediate request was for several million to cover mid-year hiring, city officials noted the annual cost of the additional 410 officers the Mayor wants would be closer to $24 million to $33.5 million in ongoing spending.
The “Skeleton Crew” Crisis: Chief Jim McDonnell warned that without these funds, the department’s staffing would drop to roughly 8,300 officers—the lowest level since 1995—just as the city prepares for the 2026 World Cup and 2028 Olympics.
The city eventually identified these funds within existing police department accounts rather than the general fund to bypass some council resistance.