FEMA rejects California's final appeal for more fire survivor case management money, and the Red Cross steps in
The decision ends federal support for the Eaton and Palisades fire survivors' case management program short of its approved 24 months. The American Red Cross will pay for the services through Catholic Charities of California, which the state expects to last into mid-2027.
Washington. The Federal Emergency Management Agency has upheld its denial of California's appeal for supplemental funding for the Disaster Case Management Program, which serves survivors of the January 2025 Eaton and Palisades fires, and the state has no further opportunity to appeal, the office of Rep. Judy Chu, who represents California's 28th District, said on Oct. 30.
The program connects survivors with case managers who help them with insurance claims, housing and federal assistance. The supplemental money would have kept it running through the full 24 months that FEMA itself approved, Ms. Chu's office said. Her release does not give FEMA's reasons or the amount the state sought.
A nonprofit fills the gap
The State of California has confirmed that the American Red Cross will continue funding the program's services through Catholic Charities of California once the remaining federal funds run out, according to the release. The state expects that to extend services through mid-2027, depending on when the federal money is exhausted and how much the services are used.
“I am grateful that the American Red Cross is stepping in to keep these services available, but our communities should not have to rely on charity to fill a gap the federal government has a responsibility to close.”
Two months of uncertainty
The program had been announced on Sept. 3 to end on Sept. 30, more than a year early, for lack of FEMA funding. Ms. Chu, Rep. Brad Sherman and Sens. Adam Schiff and Alex Padilla wrote to FEMA on Sept. 10 asking it to release money it had already approved, and again on Sept. 24, after the agency had also denied California's request for supplemental funding.
On Sept. 30, the day the program faced its cutoff, FEMA released $6.6 million, the second and third installments of its original award. The state had already amended its agreement with case management providers to keep the program going until Oct. 31. FEMA released the fourth and final installment, $3.3 million, on Oct. 7, completing the funding it had awarded.
At the time, Mr. Sherman said FEMA should fund the program at least through May 2027. The appeal FEMA has now rejected was for money beyond that original award.
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