California Districts and Their Changing Needs 

In the days since the start of the Palisades Fire in Los Angeles County, not only have additional wildfires erupted—further exacerbating the devastating and destructive situation—but ongoing challenges have once again been brought to light.

California is particularly prone to natural disasters with disaster-related losses totaling more than $1 billion annually. The wildfires of 2025 are most likely to be the costliest in history, with early estimates being between $150 and $250 billion in damages.

President Biden authorized federal assistance to cover 100 percent of California’s fire management and debris removal costs for 180 days through Fire Management Assistance Grants (FMAG) from the Federal Emergency Management Agency (FEMA), up from the traditional 75 percent.3 While funding is already rolling in to support the clean-up efforts, this is a pivotal time for governance and leadership in California to consider adjusting their funding strategies and disaster recovery efforts, while continuing to increase resiliency measures for the future—not just at the State, County, or local level, but at the district level as well.

Often overlooked during disaster recovery, Special Districts play a vital role in the infrastructure and everyday fabric of life in California. California is home to nearly 3,400 districts (more than one-tenth of the approximately 30,000 in the U.S.), with more than 2,000 independent special districts. The distinction between the two is in the governance structure—dependent special districts are closely tied to a unit of local government, whereas independent special districts obtain their authority from the community they serve. Communities throughout California rely on special districts for several of their critical services including water, wastewater, and fire protection.

With the wildfires still raging and communities on edge, special districts have the opportunity to adjust their spending plans, work with key officials, and increase climate resiliency measures as the recovery efforts begin.  

Some considerations for special districts include:  

• Increased investment in infrastructure – as infrastructure continues to age, additional funding must be leveraged to replace and repair.
  
  
• Adjusting Capital Improvement Plans – now is the time to consider proceeding with large projects and exploring opportunities to offset certain costs with disaster recovery funding. Special districts may also consider buying in bulk to ensure a readily available supply of goods are on hand, leveraging recovery dollars as a way to accelerate grey skies vs. blue skies operations while responding to disaster events, and preparation for future plans.
  
  
• Increased federal funding for immediate needs – with disaster declarations already issued, federal assistance is being made to California to aid in the recovery efforts. Funding for hazard mitigation measures is also available.5 Public assistance (PA) is available to special districts as well.
  
  
• Working with key officials – though the path to federal funding for special districts is often less straight forward than that of states, counties, cities, etc., there are significant federal funding opportunities—including direct funding from the U.S. Bureau of Reclamation, the EPA, and others. In May, the Metropolitan Water District of Southern California received $99.2 million in funding from the federal government for a water recycling project, which plans to advance a new climate-resilient water supply.
  
  • While the Infrastructure Investment and Jobs Act (IIJA) does provide funding to CA special districts, they have long experienced hurdles in obtaining funding. So much so that the U.S. House of Representatives recently passed H.R. 7525 (the Special District Grant Accessibility Act), which received bipartisan support, seeking to ensure special districts are eligible for federal financial assistance in the future—this will need to be reintroduced by the 119th Congress as the Senate failed to act on this before adjourning.

• Increase climate resiliency measures – now is a unique opportunity due to the potential increase in funding opportunities related to wildfires. Potential measures for consideration are green building standards (including the use of purple pipes to carry recycled water), land-use planning, community engagement, and response plans. California already has a number of active resiliency initiatives in place and these efforts should be replicated and expanded.

Dr. Len Wright—one of our industry-leading subject matter experts in water resources—provides this perspective on lessons learned from recent fire recovery operations in New Mexico and Maui: “Clarity provided from post-event trauma provides many opportunities to envision broadly resilient smart systems from a multi-disciplinary perspective. Recent post-fire flooding in other semi-arid regions provides insight into the near-term risks California will face, as well as the long-term opportunities presented by the ongoing horrific catastrophe. By considering water supply, drought and aridification, and flooding in the same conversation, linkages and resilient opportunities can be leveraged for long-term benefits. Ultimately this event can be the prologue to a long-term integrated smart system that will save money and build communities that work together.”

While these considerations will not undo the damage caused to date by the 2025 wildfires, they will bolster resiliency measures for the future and aid special districts in their preparedness efforts. Increased capital investment, with sources such as federal aid and sustainable revenue streams, are crucial for helping California and its special districts rebuild and strategize for the years ahead. These measures are not only vital for day-to-day operations, but in preparation for future disaster events. 

For more information on the 2025 California Wildfires: https://www.fire.ca.gov/incidents
For more information on California Special Districts: https://www.csda.net/home

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