After the wildfire, small businesses in California are struggling to rebuild


The exterior frame of a gray and red brick building burned down in a forest fire.
The Woodbury Building, which burned during the Eaton fire last year, in Altadena on Jan. 12, 2026. Photo by Jules Hotz for CalMatters

More than a year after the Eaton fire broke out in Los Angeles County’s Altadena neighborhood, small businesses in the area still face various obstacles as they struggle to recover from a disaster that has killed at least 19 people.

As CalMatters’ Levi Sumagasai explains, the wildfire destroyed more than 9,000 buildings, destroying about half of Altadena’s businesses. Many small business owners Levy spoke with cited similar challenges as they try to get back on their feet, such as frustrating delays from insurance companies and limited help from the federal and state governments.

Some of the assistance available to homeowners, for example, is not extended to small business owners. Matt Schodorff, co-owner of the Altadena coffee shop that burned, said the Federal Emergency Management Agency initially shut down the store to remove debris. Schodorff said it wasn’t until she told her story in the media and received support from a Los Angeles County supervisor that FEMA included the store in its debris cleanup.

  • Schodorf: “It feels disappointing because we feel like we’re very small potatoes, especially from the government’s perspective. It doesn’t seem like it’s too much to ask: Waive the permit fees, clean up your lots. Don’t make us go on the national news asking for help.”

State law also allows homeowners to receive some advance payments from insurance companies without having to provide full itemized inventory — a policy that does not apply to businesses and may extend the claims process.

For some business owners, the obstacles and consequences of the fire prove to be too much.

  • Carrie Meyersowner of a former Altadena pet store that burned down and won’t reopen: “People want me back. But I don’t know if we can survive there. Nobody lives there … mentally I’m not there.”

Read more here.


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$23 billion for research in CA?

Participants rallying against the Trump administration’s research funding cuts walk from the UCLA campus to the Wilshire Federal Building in Los Angeles on April 8, 2025. Photo by Jules Hotz for CalMatters

From CalMatters higher education reporter Mikhail Zinstein:

A bipartisan coalition of state lawmakers is backing a bill to put a bond measure before voters in 2026 on whether to approve $23 billion in research funding.

Sen. Scott WienerDemocrat from San Francisco, led the effort. He presents Senate Bill 895 as California’s contingency plan to fund research into vaccines, wildfire prevention and other disciplines at a time when the Trump administration is either trying to cut already-approved research or introduce rules that halt funding for research that federal agencies supported before President Donald Trump took office last year.

Asked if the measure was necessary after Trump left office, Wiener said political instability in the U.S. could mean more cuts to federal science even after Trump.

  • Wienerof CalMatters during a press call Friday: “It’s important for California to just be a rock in the storm, so we’re just doing science here and investing in science … regardless of what’s going on with the federal government at this point.”

Any drugs created with that state money would be discounted for Californians, according to the legislation. Funding will flow to California public universities and other research organizations. The Graduate Student Union also supports the bond.

New rules for CA homeless funds

A man stands near a tent on the sidewalk in a street while eating a bowl of soup. The street is filled with cars and surrounded by residential buildings.
A homeless man eats soup outside his tent on Cedar Street in San Francisco on November 19, 2024. Photo by Jungho Kim for CalMatters

Gov. Gavin Newsom is stepping up pressure on California cities and counties to do more to curb homeless encampments by adding new strings to homeless fundsMarissa Kendall and Ben Christopher write.

In Mendocino County, for example, the state appears to be holding funds hostage — which were already approved in the 2024-25 budget and recently became available — until the county can explain its plans to submit a camping ordinance to the state, according to a senior program manager in the county’s Department of Social Services. But the new rule puts the Department of Human Services in a bind because it has no authority to judge enforcement.

Newsom, the Legislature, local officials and other stakeholders are also likely to continue debating the terms of $500 million in homeless funding proposed in this year’s budget, which must be passed by the end of June.

That call for local governments to step up isn’t sitting well with some advocates.

  • Carolyn Colemanexecutive director and CEO of the California League of Cities: “I’m concerned that, first, we could leave more cities. And, second, that we could cause a delay in being able to house more people sooner, which I think is the goal.”

Read more here.



Other things worth your time:

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Judge Blocks Trump Administration from receiving the CA electoral rolls // The Washington Post

The Trump administration is escalating investigating the participation of transgender athletes in CA // Los Angeles Times

Newsom sets a date for special election for Congressional District 1 // Shasta Scout

As CA schools strugglegubernatorial candidates clash over who’s to blame // The Mercury News

How CA gubernatorial candidates they say they will tackle homelessness // The Orange County Register

Before city raidsBorder Patrol tests tactic on CA farm // New York Times

Honduran father dies in ICE custody in California. His family wants an investigation // Los Angeles Times

SoCal Edison archives suits v. LA County et al v. Eaton Fire // LAist

Lynn La is a newsletter writer for CalMatters, which focuses on the top political, policy and Capitol stories in California each weekday. She produces and curates WhatMatters, CalMatters’ flagship daily newsletter…

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