California Plans $18B Wildfire Utility Fund Boost

California has accelerated over 100 wildfire prevention projects covering more than 25,000 acres in response to federal budget cuts under the Trump administration, which reduced the U.S. Forest Service budget by 10 percent and cut firefighting staff by 25 percent. Governor Gavin Newsom criticized the federal reductions and urged the Trump administration to align federal wildfire efforts with California’s state measures. Meanwhile, California lawmakers have reached an initial agreement to boost the state's wildfire utility fund by approximately $18 billion to address wildfire damages and liabilities faced by utilities. The funding increase would be split equally between utility ratepayers and shareholders, with ratepayers potentially paying an additional $9 billion through an extended surcharge on their bills. Consumer advocates have raised concerns about the rushed legislative process and the complexity of the bill, which would extend the surcharge by 10 years beyond its original expiration in 2035. This legislative action aims to stabilize utilities’ finances amid increasing wildfire risks, following devastating wildfires earlier in the year that depleted the fund and caused significant damage and loss of life.