With President Donald Trump bound for Los Angeles today and once again threatening to withhold wildfire aid to California unless the state abides by his water policies, Gov. Gavin Newsom signed two bills Thursday to provide $2.5 billion in state funding for wildfire response and preparedness, writes CalMatters’ Sameea Kamal.

• Newsom, at a press event in Pasadena: “People feel helpless, but not everybody feels hopeless. This is about distilling a sense of hopefulness.”

State and local agencies can use the money for a variety of recovery efforts, such as providing shelters, removing hazardous waste and testing air quality. It also includes:

• $4 million for the Department of Housing and Community Development to help local governments speed up building permits;
• $1 million to rebuild schools;
• $250,000 to the Division of the State Architect;
• $750,000 to the Office of Public School Construction.

Funds for the relief package will be drawn from the state’s reserve fund specifically earmarked for economic uncertainties, which had about $8.3 billion as of Jan. 10, according to a California Department of Finance spokesperson. State officials say the $2.5 billion should be reimbursable by the federal government.

Hours before receiving the governor’s signature, the bills passed the Legislature unanimously in both chambers. The mood was somber, and while legislators acknowledged the urgency of the matter, some also stressed that the state should carefully track where the money would go, and that vulnerable communities should be prioritized.

• Sen. Lola Smallwood-Cuevas, a Los Angeles Democrat: “Fire does not discriminate. But what can discriminate is how we rebuild. … It is crucial to do so ethically and equitably.”

The wildfires that broke out earlier this month have killed at least 27 people, and displaced tens of thousands of others. New fires continue to ignite in Southern California this week, including the 10,000-acre Hughes Fire in L.A. County that began Wednesday.

Also Thursday, Newsom's office was left trying to discern the details of Trump's planned visit to the fire zone — and the White House seemed just fine to leave the governor hanging. It's unclear whether the two, whose relationship is frosty at best, will appear together as presidents and governors normally do at disasters scenes. CalMatters' Alexei Koseff previews what could be an awkward day in LA in this story.

Wildfire newsletter: CalMatters is teaming up with PBS SoCal, LAist and KCRW to offer a free newsletter that delivers new and accurate information about the Southern California fires. Read an edition and subscribe.

OpenAI’s intentions to go from a nonprofit organization to a for-profit corporation is raising a few eyebrows. That includes those from the California Attorney General’s office, which has opened an investigation into the possible business restructuring.

As CalMatters’ Khari Johnson explains, the California-based creator of ChatGPT launched in 2015 originally as a nonprofit. But in December, it confirmed it was considering a plan to set up a for-profit public benefit corporation. Though the artificial intelligence company currently has a for-profit arm, profits from this sector are capped, creating a barrier for fundraising and conflict between its nonprofit and for-profit branches.

Critics of the proposal, including tech competitor Meta, also argue that this could set a dangerous precedent that allows startups to reap the tax benefits of nonprofits, while intending to become highly lucrative businesses.

Read more here.

“We’re not going to do the wind thing.”

At his inauguration Monday, Trump reiterated his pledge to end the U.S. offshore wind industry, and quickly followed up with an executive order banning new offshore wind leases, reports CalMatters’ Julie Cart.

The ban doesn’t immediately affect plans that are already underway for large wind farms located in two areas off California’s coast. But they could be threatened in the near future, since Trump also ordered “a comprehensive review” of “terminating or amending” offshore wind leases.

Industry officials and environmentalists argue that Trump’s decree is a big blow to an industry that is just starting to gain momentum. Offshore wind is also key for the state’s goal to electrify its grid and go carbon neutral by 2045.

But Trump isn’t the only critic: Many residents and local officials in Morro Bay, where one of the two major wind farm projects will be located, have raised concerns that the turbines will harm their community’s environment and economy.

Read more here.

Compared to 2020, Trump made small gains in the November election not only among California’s general voting population but voters ages 18 to 29 as well. Find out why from June Hsu of CalMatters’ College Journalism Network.

California Voices

CalMatters columnist Dan Walters: With its economy and population size similar to Canada, should California breakaway from the U.S. and become its own country?