California Attorney General Rob Bonta has led a coalition of 20 attorneys general in opposing a recent move by the U.S. Small Business Administration (SBA) that would allow federal preemption of state and local permitting requirements after declared disasters. The group filed a comment letter criticizing the SBA’s interim final rule, which permits contractors to self-certify compliance with local building, health, and safety codes for projects funded through the SBA’s Disaster Loan Program.
“Public safety is my first, second, and third priority. As communities in California and across the country rebuild after devastating natural disasters, speed matters, but so do safety, health, and quality,” said Attorney General Bonta. “Evidence already shows that state and local governments have been doing their part to streamline permitting times and building codes for those affected by natural disasters. This interim final rule doesn’t make recovery quicker; it makes recovery more dangerous. I urge the Trump Administration to rescind it. If President Trump and those who work for him really want to be helpful, they should authorize the $34 billion that Californians need to recover from the Palisades and Eaton fires — just as every past president has provided assistance to Americans of all political stripes.”
The SBA’s Disaster Loan Program was established under the Small Business Act of 1958 to provide loans for disaster survivors to repair or replace property damaged in presidentially-declared disasters. On January 23, 2026, President Trump signed Executive Order 14377 citing alleged delays by California and Los Angeles County officials in wildfire recovery efforts, prompting the SBA’s new rule six days later without advance notice or public comment.
For generations, regulation of construction related to public health and safety has largely remained under state and local jurisdiction except where specifically addressed by federal law. The coalition argues that Congress did not grant SBA authority to override such laws or permitting processes.
Recent data indicates that delays in rebuilding are primarily caused by factors such as insurance issues or high out-of-pocket costs rather than slow permit approvals. Local agencies have accelerated home rebuilding permit approvals compared to previous years before major fires.
In their letter, Attorney General Bonta and his counterparts claim:
– The interim final rule unlawfully exceeds SBA’s statutory authority since Congress has not delegated preemption power.
– It is arbitrary because there is no evidence showing conflict between state/local permitting rules and the Disaster Loan Program.
– Its vagueness may lead to legal uncertainty following disasters since it does not clearly define when state or local rules would be preempted.
– It was issued without following proper administrative procedures requiring notice and public comment.
– It goes against Executive Order 13132 signed by President Bill Clinton in 1999 directing federal agencies to respect federalism principles.
Bonta was joined by attorneys general from Arizona, Colorado, Connecticut, Delaware, Hawai‘i, Illinois, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia.
Rob Bonta leads the California Attorney General’s office (official website), which serves as California’s chief law enforcement authority with responsibilities including enforcing state laws and protecting public rights. The office operates statewide (official website) as part of California’s executive branch (official website), advancing initiatives on civil rights and environmental justice (official website). It also promotes transparency through tools like OpenJustice for publishing criminal justice data (official website).
