FEMA funding shortfall forces shutdown of California wildfire recovery case management program

The state’s Disaster Case Management Program, created to aid families displaced by the 2025 Eaton and Palisades wildfires, will cease operations on September 30 because FEMA has not supplied the required funding. Established in January 2025 through a partnership between the California Department of Social Services and Catholic Charities of California, the program assigned case managers to help households file for federal assistance, secure SBA loans, submit insurance claims and obtain temporary housing.

Community Organized Relief Effort reported handling case work for 904 families, with 449 cases still active. The termination notice cited unresponsive payment requests from FEMA, despite the agency reporting $177.1 million in assistance to more than 35,000 eligible individuals. State leaders warned that the loss of case management will leave vulnerable groups, such as seniors and limited-English speakers, facing prolonged displacement and increased exposure to scams. The department plans to coordinate a demobilization plan with Catholic Charities to mitigate impacts on remaining cases.