Trump Moves to Block Federal Funding for Low-Income Housing in Pacific Palisades

President Trump declares he will prevent federal funds from being used to build affordable housing in the affluent Los Angeles neighborhood.

Jan. 29, 2026 at 9:55pm

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President Donald Trump stated during a Cabinet meeting that he would prevent federal funds from being used to build low-income housing in the Pacific Palisades, an affluent Los Angeles neighborhood still recovering from last year's wildfires. Trump criticized local fire management and infrastructure policies, and instructed officials to block California from receiving financing for the proposed Palisades housing project.

Why it matters

This move signals a new flashpoint between the federal government and California officials over post-disaster housing policy in high-income areas. The decision could impact the ability of low-income residents displaced by the wildfires to find affordable housing options in the Palisades.

The details

Trump declared he would not allow a low-income housing project to be built 'in the middle of everything' in Palisades, citing concerns about destroying property values. He instructed the EPA administrator to expedite rebuilding permits for residents and the Treasury Secretary to block California's financing for the proposed affordable housing project.

  • On January 29, 2026, Trump made the remarks during a Cabinet meeting.
  • In July 2025, six months after the wildfires, California announced $101 million in funding to rebuild affordable housing across Los Angeles County.

The players

Donald Trump

The former President of the United States who is opposing the use of federal funds for low-income housing in the Pacific Palisades.

Gavin Newsom

The Governor of California who pushed back against Trump's remarks, clarifying that the federal funding was not limited to the Palisades and supported affordable housing in multiple wildfire-impacted communities.

Lee Zeldin

The Environmental Protection Agency Administrator whom Trump instructed to ensure residents seeking permits to rebuild their homes could obtain them quickly.

Scott Bessent

The Treasury Secretary whom Trump tasked with blocking California from receiving financing for the proposed Palisades housing project.

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What they’re saying

“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. 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.”

— Donald Trump, President

“This funding is not limited to the Palisades. It supports affordable housing in multiple wildfire-impacted communities, including Altadena.”

— Gavin Newsom's office

“Thousands of families — from Pacific Palisades to Altadena to Malibu — are still displaced, and we owe it to them to help. The funding we're announcing today will accelerate the development of affordable multifamily rental housing so that those rebuilding their lives after this tragedy have access to a safe, affordable place to come home to.”

— Gavin Newsom, Governor of California

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.