State lawmakers considering policy changes after L.A. wildfires
A bill, AB 226, sponsored by Assemblymembers Lisa Calderon (D-Whittier) and David A. Alvarez (D-San Diego), would make the state's insurer of last resort, the FAIR Plan, eligible for loans and bonds from the state-backed California Infrastructure and Economic Development Bank to avoid running out of money after a disaster.
Alvarez proposed the measure last year but it failed to pass. Despite receiving unanimous support in the Assembly, the bill never reached the Senate floor for a vote before the end of the 2024 legislative session.
If the measure had passed last year and been signed into law by the governor, the FAIR Plan would have had more flexibility to weather the massive number of claims filed after the January firestorms, Alvarez said.
Instead, the FAIR plan was forced to imposed an extra $1 billion in total assessments on insurers that provide homeowners policies in California. To recoup those expenses, insurance companies are expected to hike rates on homeowners through monthly surcharges.
'Had they had this option available to them ... they would not be having to hit consumers with price increases on the private market now,' Alvarez said.
AB 226 is one of many wildfire-related bills still winding their way through the slow legislative process. If passed into law, the measures would protect homeowners from price gouging after disasters, streamline the process for filing claims for lost property and offer financial protections for disaster victims.
Lawmakers and Gov. Gavin Newsom in January approved $2.5 billion in wildfire aid after the Palisades and Eaton fires killed more than two dozen people and became the second and third most destructive fires in state history. Legislative leaders at the time signaled for a swift, bipartisan approach to the disaster.
'Tens of thousands of our neighbors, our families and friends, they need help. This means that we need to be able to move with urgency, put aside our differences, and be laser-focused on delivering the financial resources, delivering the boots on the ground that are needed and the policy relief that is needed to get neighborhoods cleaned up and communities rebuilt,' Senate President Pro Tem Mike McGuire (D-Healdsburg) said after it passed.
California's last-ditch home insurer, the FAIR Plan, is meant as a backup for properties deemed high-risk and uninsurable by private companies. A Times analysis found that within the Eaton and Palisades fire zones, the number of homes on the plan nearly doubled between 2020 and 2024 and the plan has become one of the state's largest insurers.
Amid lawsuits alleging collusion between private insurers and the FAIR Plan and policyholders raising concerns about delays in payments and smoke damage investigations, lawmakers and insurance advocates have repeatedly called for better safety nets — like the one proposed in AB 226 — to keep the insurer solvent in emergencies and viable as a long-term solution to the state's home insurance problem.
This year, Alvarez was joined on the bill by Calderon, chair of the Assembly's insurance committee. It passed through the Assembly at the beginning of March but has not yet seen its first Senate committee.
Alvarez celebrated the bill's swift passage through the Assembly and hopes the Senate will work to do the same, 'God forbid, if it has to be used because of a devastating fire this summer,' he said.
Other major wildfire bills being considered by lawmakers include:
Most of the pending legislation won't directly support survivors of the Palisades and Eaton fires but are still important to the rebuilding process, said Maryam Zar, president emeritus of the Pacific Palisades Community Council and founder of the Palisades Recovery Coalition.
The new laws would help prevent and prepare for future fires, she said, and are a show of goodwill to the communities that are suffering still.
Some other fire relief measures focus on easing the permit process for rebuilding, while others extend provisions set by Newsom during the state of emergency — easing tenancy rights for people staying in temporary housing for longer than 30 days, shortening the permit approval timeline and securing mortgage forbearance for destroyed properties for up to a year after the disaster. Others look to address staffing issues for the California Department of Forestry and Fire Protection as fire season turns into a year-round threat.
'Wildfire survivors continue to face housing insecurity, financial strain, and emotional trauma long after the immediate danger has passed,' Los Angeles County Supervisor Lindsey Horvath said in a statement. 'These State bills represent a commitment to meeting people where they are — actively in recovery, rebuilding their lives, and in need of our long-term support.'
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Stutzman said he ultimately voted yes for the bill's tax policy and border funding. Another reason: the Golden Dome, as his district likely stands to benefit from the $25 billion outlay. A reminder that for all the conversations involving the key themes you read about in national headlines, members had to weigh political philosophies against local impacts. Burman hosts 'The Hill' weeknights, 6p/5c on NewsNation. 3 THINGS TO KNOW TODAY ▪ CEOs are becoming more candid while projecting white-collar jobs that will be replaced by AI. ▪ The Smithsonian's National Air and Space Museum will lose its display of Space Shuttle Discovery to the Johnson Space Center in Houston. The shuttle shuffle is tucked into the 'big, beautiful bill' Trump will sign tonight. ▪ Vance, as Republican Party finance chair, is picking up the pace of his summer fundraising. He'll be in San Diego on Monday and in hot spots in Massachusetts and Wyoming later this month. LEADING THE DAY © The Associated Press | Nam Y. Huh 📊 ECONOMY: The unemployment rate in June dropped a notch to 4.1 percent from 4.2 percent in May, and the economy added 147,000 jobs last month, surprising many analysts who said Thursday they had anticipated signs of a more rapidly weakening labor sector. The sturdy government data erased market forecasts of possible Federal Reserve interest rate cuts this month and perhaps in September, analysts told news outlets during interviews. 'The solid June jobs report confirms that the labor market remains resolute and slams the door shut on a July rate cut,' Jeffrey Schulze, head of economic and market strategy at ClearBridge Investments, told CNBC. But analysts insist June's upbeat numbers did not counter indications of a slowing economy in which workers need longer periods to find new positions and large companies are hesitant to make commitments amid tariff and geopolitical uncertainties. 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She estimated that the approximately $1.3 billion federal dollars for after-school and summer-school programs support 1.4 million students, mostly those of lower income. They make up about 20 percent of all students in after-school programs nationally. WHERE AND WHEN ZOOM IN © The Associated Press | Jae C. Hong SUPREME COURT: The Supreme Court agreed Thursday to decide whether states can ban transgender athletes from competing on girls' and women's school sports teams. The justices said they would hear appeals from Republican leaders in Idaho and West Virginia defending their state bans. A decision is expected by next summer. The move sets up another major dispute over transgender rights before the conservative-majority court that recently upheld Tennessee's ban on gender-affirming care for minors. The University of Pennsylvania's decision this week to sign a resolution agreement with the Trump administration barring transgender women from its women's sports teams signals other schools facing disciplinary action from the White House may be prepared to take similar steps. ▪ CBS News: The Trump administration's 'divide and conquer' approach to LGBTQ rights. ▪ NBC News: The Supreme Court on Thursday allowed Trump to move ahead with plans to send eight convicted criminals to South Sudan. ▪ Politico: The Supreme Court will review the scope of states' immunity after a pair of bus accidents. HOLIDAY TRAVEL: 🚗✈️ Planes, trains and automobiles! A record-breaking 72.2 million people are expected to travel over the Independence Day period stretching from Saturday, June 28, to Sunday, July 6, according to estimates from AAA — a 2.4 percent jump from last year. 'AAA is seeing strong demand for road trips and air travel over Independence Day week,' said Stacey Barber, vice president of AAA Travel. 'With the holiday falling on a Friday, travelers have the option of making it a long weekend or taking the entire week to make memories with family and friends.' That means long lines, busy roads and wait times. Whether you're driving or flying, here are travel tips for the busy Fourth of July weekend. ▪ Yahoo News: Here's where storms, traffic and crowds are expected to hit hardest. ▪ Reuters: In France, an air traffic controllers' walkout disrupts early summer travel. 🌀 The Atlantic hurricane season could get its third named storm just in time for the July 4 weekend. Regardless of whether this system gets a name, it's already delivering drenching rain, soaking the soil and raising the flood risk in Florida. Blustery winds, heavy rain and rip currents could hit the Sunshine State, coastal Georgia and the Carolinas into the holiday weekend. ▪ Weather: From sweltering temperatures and summer thunderstorms to an upward swing in hurricane season, July can be a busy month for weather. Here's what you can expect. ELSEWHERE © The Associated Press | Ronen Zvulun, Reuters ISRAEL: After 18 months of war in Gaza and weeks of strikes against Iran, Israeli Prime Minister Benjamin Netanyahu is eyeing another term in office, hoping the attacks on Tehran will boost his standing among Israelis and he can further delay a looming corruption trial. The prime minister will visit Trump at the White House next week, where the president is pushing for a 60-day ceasefire deal that Israeli officials have said they support. Asked whether Hamas has agreed to the latest framework for a ceasefire and hostage deal, Trump told reporters Thursday: 'We'll see what happens… We'll know in the next 24 hours.' Netanyahu's government was under harsh criticism from within Israel for failing to produce a ceasefire and hostage release deal with Hamas in Gaza. But the barrage against Tehran's nuclear facilities briefly raised public confidence in the prime minister. Still, his approval ratings remain low. Just 40 percent of the public has trust in Netanyahu, according to a survey published Wednesday by the Israel Democracy Institute. 'Overall, we have not seen substantial shifts in public opinion regarding Prime Minister Netanyahu as a result of the war with Iran,' said Tamar Hermann, director of IDI's Viterbi Family Center for Public Opinion and Policy Research. 'While support for the war with Iran was high across the board, this and other polling data suggest the prime minister remains popular among his base of supporters, and he did not manage to change the opinions of those who oppose him.' ▪ Foreign Policy: Can Netanyahu secure a second term? ▪ BBC: Netanyahu hopes for a boost from Iran conflict — but do Israelis still trust him? ▪ CNN: More than 80 Palestinians were killed across Gaza on Thursday as Israel intensified its strikes. ▪ Reuters: The U.S. imposed sanctions on Thursday against a network that smuggles Iranian oil disguised as Iraqi oil, and on a Hezbollah-controlled financial institution. UKRAINE: The Pentagon's decision to halt some weapons shipments to Ukraine blindsided many, including members of Congress, State Department officials and key European allies, Politico reports. The surprise move has fueled concern and frustration, including among top Republicans, that one senior Pentagon official appeared to hold outsized influence over the decision. 'Ukraine has never asked America to send in the 82nd airborne; they've asked for the weapons to defend their homeland and people from Russia attacks,' former Trump Secretary of State Mike Pompeo said Wednesday in a post on the social platform X. 'Letting Russia win this war would be [an] unmitigated disaster for the American people and our security around the world.' Trump on Thursday downplayed the impact of the munitions pause. 'We're giving weapons… and we're working with them and trying to help them,' he said, adding 'we have to make sure we have enough for ourselves.' The president also spoke with Russian President Vladimir Putin, but said he made 'no progress' during the call on attempts to broker a ceasefire in Ukraine. Moscow, meanwhile, hammered Kyiv in the largest missile and drone barrage since war in Ukraine began. 'We had a call. It was a pretty long call. Talked about a lot of things, including Iran,' Trump told reporters as he departed for Iowa. 'And we also talked about, as you know, the war with Ukraine, and I'm not happy about that.' Trump confirmed he will be speaking today with Ukrainian President Volodymyr Zelensky. ▪ The Wall Street Journal: Putin plots a summer of relentless attacks on Ukraine. ▪ The Hill: Former President Biden claimed during an event in San Diego this week that world leaders and U.S. lawmakers have urged him to stay involved in politics and have sought his advice since he left the White House in January. ▪ France24: The U.S. and Colombia recalled their top diplomats Thursday amid escalating tensions, linked to an alleged plot against Colombia's leftist president. OPINION ■ Congress just pushed the U.S. toward a debt crisis. The Fed can't save us, by The Washington Post editorial board. ■ A 'big beautiful' pro-growth agenda built for Main Street, not Wall Street, by Rep. Erin Houchin (R-Ind.), opinion contributor, The Hill. THE CLOSER © The Associated Press | Terry Chea And finally … 👏👏👏 Congratulations to this week's Morning Report Quiz winners! With summer in mind, we puzzled over some national parks. 🧩 Here's who went 4/4: Richard E. Baznik, Stan Wasser, Lynn Gardner, Jess A. Elger, Sol Brotman, Linda L. Field, Jonathan Simon, Jenessa Wagner, Hadden J. Carlberg, Ned Sauthoff, Brent Tracy, Chuck Olinger, Michael Sutton, Brian Hogan, Ellie Hansen, Peter Sprofera, Sue Rarus, Bill Bennett, Lou Tisler, Alan Johnson, Chuck Schoenenberger, George Alfano, John Van Santen, Mark Roeddiger, Steve Comer, Robert Bradley, Steve James, Kirkland Hendrickson, Loren Hegge, Savannah Petracca, Carmine Petracca, Rick Schmidtke and Patrick Clark. Yellowstone is the nation's first national park, established in 1872. The United States has 63 national parks. Alaska is home to seven of the 10 largest national parks. The world's largest tree, known as 'General Sherman,' towers into the sky in Sequoia National Park.
