House Republicans and Trump Contemplate Linking California Wildfire Assistance to Debt Ceiling Increase

The ongoing fires in California have the potential to emerge as the most expensive natural disaster in U.S. history.

House Republicans and Trump Contemplate Linking California Wildfire Assistance to Debt Ceiling Increase
A group of House Republicans and President-elect Donald Trump discussed the possibility of linking wildfire aid to a debt ceiling increase during a dinner on Sunday night. This conversation comes as fires ravage large areas of Los Angeles, potentially becoming one of the most expensive natural disasters in U.S. history.

Among the nearly two dozen House Republicans present at Mar-a-Lago were several caucus leaders and appropriators who hold significant sway in upcoming budget reconciliation and government funding talks. House Speaker Mike Johnson was not in attendance, and according to two individuals familiar with the private meeting, who requested anonymity, no conclusive decisions were reached.

Addressing the impending debt ceiling will present a major challenge for Johnson in the coming months, particularly with Trump advocating for swift legislative action. The discussions on Sunday indicate that Republicans are eager to formulate a strategy before the nation reaches its borrowing limit. However, Democrats and some Republicans are likely to resist the notion of tying disaster relief funding to the contentious issue of extending the debt ceiling.

Many Republicans harbor concerns that incorporating a debt ceiling increase into their key party-line reconciliation package, which includes border, energy, and tax policy provisions, could jeopardize the bill due to existing divisions within the GOP. This situation may force leadership to repeatedly reconsider their options.

Currently, the federal disaster relief fund is well-funded, thanks to the $100 billion in disaster aid authorized by Congress at the end of the previous year. However, the sheer magnitude of the fires affecting Los Angeles has lawmakers contemplating the potential need for additional funds in the future.

In the coming weeks, Congress could be called upon to approve long-term recovery initiatives, such as assisting California through the Department of Housing and Urban Development's community development projects related to disaster recovery.

Trump's return to the White House later this month may further complicate federal aid processes, as he has been publicly clashing with California's Democratic governor, Gavin Newsom, over issues related to wildfires and water policy in an ongoing dispute.

Additionally, Trump met with a group of House Republicans from California, New York, and New Jersey to discuss the wildfires on Saturday night. These discussions occurred during a weekend networking event featuring Trump and various factions of House Republicans, who convened to address the party's extensive legislative agenda, particularly the significant budget reconciliation bill likely to involve immigration, energy, and tax policies.

Jennifer Scholtes contributed to this report.

Ian Smith contributed to this report for TROIB News