Rising Strong: Los Angeles' Path to Recovery | Global Conference 2025

Event Overview & Context

• The Milken Institute hosted a recovery panel on January 12 (Wednesday at 1:00 PM) focusing on the January 7, 2024 wildfires in Los Angeles.
• The fires destroyed over 16,000 homes, businesses, and community assets in Pacific Palisades, Altadena, and surrounding areas.
• Panelists noted that while immediate relief efforts were successful, the long-term rebuilding phase presents more complex challenges than the initial emergency response.

Current Recovery Status & Statistics

• Approximately 120 days post-disaster, 1,100 building lots have been cleared of debris, with the goal of allowing residents to rebuild immediately upon permit approval.
• The city issued its first rebuilding permits within two months; 37 permits are currently approved, with ~200 in the pipeline, though total demand is in the thousands.
• The Los Angeles Department of Water and Power (LADWP) and Fire Department faced scrutiny regarding operational failures, specifically an empty drinking water reservoir due to a cover tear and delays in fire hydrant inspection data transfer.
• Fire Chief Joanne Hayes-White was fired for her response; further personnel accountability measures are expected to be revealed within the next few months as investigations continue.
• Governor Newsom has requested $39 billion in federal funding; the Trump administration has maintained the Biden-era policy of 100% FEMA reimbursement for Los Angeles.
• Philanthropic efforts, including FireAid, have raised an estimated $800 million within 17 weeks of the disaster.
• The Annenberg Foundation has distributed an initial $50 million for immediate needs and is considering a second tranche of $25 million for health testing and community support.

Government Actions & Policy Shifts

• Mayor Karen Bass (City of LA):
  • Waived building fees to accelerate rebuilding and is piloting AI-driven permit processing to potentially reduce timelines by 30 days.
  • Proposed self-certification models for permits to reduce bureaucratic hurdles.
  • Announced a "Shine LA" mobilization campaign to prepare the city for upcoming events (World Cup 2026, World Series, Olympics) alongside recovery efforts.
• Supervisor Lindsay Horvath (LA County):
  • Established a Blue Ribbon Commission with UCLA to guide resilient, region-wide recovery strategies for unincorporated areas and Malibu.
  • Led the fastest debris removal process in California history, setting a new expectation for future emergency response efficiency.
  • Is pushing for regional consolidation of water agencies and infrastructure planning to address the complexity of serving 200+ water districts and 88 cities.
  • Highlighted the need to protect generational wealth in historically Black neighborhoods (e.g., Altadena) by addressing title transfer complications and ensuring equitable funding.
• Cross-Governmental Collaboration:
  • County, City, and State agencies formed a unified command for debris removal, coordinating with federal partners (Army Corps of Engineers, FEMA, EPA).
  • County officials plan to support Malibu in rebuilding sewer infrastructure for ~300 coastal homes that previously relied on septic systems.
  • PCH (Pacific Coast Highway) is scheduled for partial reopening by the end of the month, with long-term plans for utility undergrounding and safety improvements.

Philanthropy & Community-Led Initiatives

• Department of Angels (led by Evan Spiegel):
  • Deployed a "block captain" infrastructure to ensure 100% coverage of impacted residents for community-driven recovery.
  • Funded 12 community organizers across Altadena, Palisades, and Malibu to provide staffing and project management support.
  • Launched LA Fire Health (lafirehealth.org), a decade-long scientific study involving Stanford, Harvard, and UCSF to monitor soil, air, and water quality impacts on health.
  • Opened four impacted worker centers to support employees of small businesses and displaced workers regardless of immigration status.
• FireAid & Annenberg Foundation:
  • Reopened Loma Alta Park in Altadena and a playground in the Palisades as "symbols of hope" to restore community gathering spaces.
  • Secured $100 million in 24 hours via a global concert and continues to fund basic needs and mental health services.
  • Partnered with the California Community Foundation to support nonprofits providing food and housing to those who have moved five or more times.

Challenges & Critical Disagreements

• Insurance & Insurability:
  • Panelists identified the insurance industry as a primary bottleneck; insurers demand proof of safety (soil testing) before underwriting, complicating rebuilding.
  • Concerns exist that cutting regulations to speed up rebuilding could backfire by lowering insurance standards and affordability.
  • The Mayor noted the insurance issue is a national problem beyond the control of local officials, though the City plans to advocate in Sacramento.
• Bureaucracy vs. Speed:
  • Supervisor Horvath cautioned against cutting all regulations, emphasizing the need for a "smart and safe" recovery rather than just a fast one.
  • Mayor Bass acknowledged that while the city is months ahead of previous disaster timelines, the sheer scale of 7,000 destroyed properties requires systemic changes to the permitting process.
• Infrastructure Fragmentation:
  • Los Angeles faces significant coordination challenges due to its decentralized governance (200+ water agencies, 88 cities), requiring a new regional purchasing entity to leverage scale and lower costs.

Forward-Looking Statements & Requests

• Federal Advocacy: Panelists requested the audience leverage connections in Washington, D.C. to secure the requested $39 billion in FEMA supplemental funds expected in mid-June.
• Tech Integration: The city plans to implement AI tools for permitting within the next couple of months, a pilot developed with philanthropic support (similar to systems used in Memphis and Vancouver).
• Prevention vs. Suppression: Evan Spiegel emphasized the need to shift funding focus from firefighting to forest fuel management and prevention to mitigate future climate-driven catastrophes.
• Regional Purchasing Entity: The Blue Ribbon Commission proposes creating a centralized agency to manage regional material and labor procurement, using Sunset Mesa's ~400-home rebuild as a pilot model.
• Long-Term Commitment: The Department of Angels and Annenberg Foundation pledged a 10-year horizon for recovery support, moving beyond immediate disaster relief to sustainable community resilience.