CALIFORNIA — On January 29, President Donald Trump said he would block federal funding for a proposed low-income housing project in the affluent Pacific Palisades area of Los Angeles.
The community is still recovering from wildfires that devastated large swaths of Southern California and destroyed thousands of homes.
“They want to build a low-income housing project right in the middle of everything in Palisades, and I’m not going to allow it to happen,” Trump said. “I’m not going to let these people destroy the value of their houses. I built a lot of low-income housing — I made a lot of money building low-income housing… We’re not going to allow this guy to build a low-income housing project on top of everything else in the middle of that mess that was created by the fact that they didn’t allow water to come down from the Pacific Northwest.”
However, local officials expressed confusion, saying no low‑income housing project has been formally proposed or planned for Pacific Palisades.
Los Angeles Mayor Karen Bass and City Councilmember Traci Park said they were unaware of any such development.
“There are no plans to bring low-income housing to the Palisades,” Bass told the Los Angeles Times. “It’s not true. There couldn’t possibly be a project that neither the councilmember nor the mayor would have any knowledge of.”
Resilient Rebuilding Authority criticized as ‘land grab’
While city leaders say no low-income housing project is planned for the Palisades, the controversy stems from housing proposals introduced after the wildfires.
California Senate Bill 549, authored by State Senator Ben Allen, proposed creating a ‘Resilient Rebuilding Authority’ that would use financing tools to help rebuild fire-ravaged areas like Pacific Palisades and potentially acquire burned lots for affordable housing development.
The bill sparked strong opposition from local residents who said it diminished local control and resembled a ‘land grab.’ This led lawmakers to pause the legislation until 2026 to allow for more community input and revisions.
Newsom’s office urges Trump to approve $33.9 billion disaster aid request
Trump also signed an executive order this week to speed rebuilding in wildfire‑devastated areas of Los Angeles by allowing builders to self-certify compliance with federal safety and building standards.
The order also calls for audits of unspent mitigation funds.
In response to the executive order, Governor Gavin Newsom’s press office urged Trump to approve the state’s $33.9 billion disaster aid request, in a post on X.
Newsom also said on social media that more than 1,600 rebuilding permits have been issued in Los Angeles and officials are moving at a fast pace.
