Why Is California in a State of Emergency: Price Caps and Disaster Aid

California is in a state of emergency because the Governor has formally declared that one or more disasters have overwhelmed local resources, which unlocks state powers, federal aid, and legal protections for residents in the affected areas. As of early 2026, more than 40 emergency proclamations remain open across the state, covering wildfires, winter storms, land movement, bird flu, and earthquake damage.1California Governor’s Office of Emergency Services. Open State of Emergency Proclamations The largest active declaration covers the January 2025 Los Angeles County fires and windstorm event, which produced more than two dozen executive orders and triggered both state and federal disaster assistance.

What Legally Counts as a State of Emergency

Government Code section 8558 defines a state of emergency as conditions of disaster or extreme peril to people and property that go beyond what local government can handle. The statute lists the triggers: fire, flood, storm, epidemic, riot, drought, cyberterrorism, earthquake, sudden energy shortage, and plant or animal disease, among others.2California Legislative Information. California Code GOV 8558 Magnitude is the threshold. A house fire doesn’t qualify; a wildfire burning thousands of acres and overwhelming multiple fire departments does.

The Governor’s proclamation must be in writing. It takes effect the moment it’s issued and gets filed with the Secretary of State afterward, because the events that trigger these declarations don’t wait for paperwork.

Which Emergencies Are Currently Active

California rarely has just one open proclamation. As of February 2026, active declarations include:1California Governor’s Office of Emergency Services. Open State of Emergency Proclamations

  • The January 2025 Los Angeles County fires, covering Los Angeles and Ventura counties and generating more executive orders than any other recent emergency.
  • A statewide bird flu proclamation issued in December 2024 for avian influenza affecting poultry and dairy operations.
  • Late December 2025 storms affecting six southern California counties.
  • A separate statewide wildfire prevention proclamation that is not tied to any single fire event.
  • A December 2024 northern California earthquake declaration covering Del Norte, Humboldt, and Mendocino counties.

Some proclamations stay open for years because recovery continues long after the immediate danger. Debris removal, infrastructure repair, and federal reimbursement can run on timelines closing a declaration early would disrupt.

What Changes for Residents in an Affected Area

The Price Gouging Cap Kicks In

Once the Governor declares a state of emergency, Penal Code section 396 makes it illegal to raise prices on essential goods and services by more than 10% above what was charged before the declaration. The cap covers food, gasoline, building materials, medical supplies, emergency cleanup, hotel rooms, and rental housing.3California Governor’s Office of Emergency Services. Price Gouging A seller can exceed 10% only by proving the increase directly reflects higher costs from their own suppliers.

Violations are a misdemeanor punishable by up to one year in jail, a fine of up to $10,000, or both.3California Governor’s Office of Emergency Services. Price Gouging Some local jurisdictions add their own rules on top. Los Angeles County’s ordinance, for example, carries fines up to $30,000.

Emergency Orders Carry the Force of Law

Orders issued by the Governor under the Emergency Services Act, including evacuation orders, are enforceable. Refusing or neglecting to obey a lawful emergency order is a misdemeanor, punishable by up to six months in jail, a fine of up to $1,000, or both.4California Legislative Information. California Code GOV 8665 Enforcement in practice tends to focus on repeat offenders and people obstructing emergency operations rather than confused residents.

Volunteer Liability Protections

If you volunteer during an emergency, federal law offers a shield. Under the Volunteer Protection Act, a volunteer working for a nonprofit or government entity generally cannot be held personally liable for harm caused by their actions, as long as they stayed within the scope of their role and weren’t grossly negligent or engaged in criminal misconduct.5Office of the Law Revision Counsel. 42 U.S. Code 14503 – Limitation on Liability for Volunteers The protection does not cover harm caused while operating a vehicle that requires a license or insurance.

Health Emergencies Add More Flexibility

Public health declarations activate separate tools. The state can authorize out-of-state medical professionals to practice in California without a California license, routed through the Emergency Medical Services Authority. During the COVID-19 emergency, out-of-state providers received temporary authorization that lasted until the state of emergency ended in February 2023.6Department of Consumer Affairs. EMSA Authorization of Out-of-State Medical Personnel California also has legally mandated nurse-to-patient ratios, including 1:2 in intensive care units, which the Governor can adjust during a declared health emergency.

When the federal government simultaneously declares a public health emergency, the Secretary of Health and Human Services can waive certain HIPAA privacy requirements for hospitals operating under a disaster protocol. The waivers let hospitals share patient information with family members or place patients in overflow areas without the usual notice procedures, but only for up to 72 hours after a hospital activates its disaster plan.7HHS.gov. Is the HIPAA Privacy Rule Suspended During a National or Public Health Emergency

How Federal Disaster Aid Connects to a State Proclamation

A state emergency proclamation and a federal major disaster declaration are two separate actions that work together. The Governor first exhausts state and local resources, then formally requests federal help with a damage assessment and a certification that local governments can’t handle the situation alone.8eCFR. 44 CFR Part 206 Subpart B – The Declaration Process The President decides whether to issue a major disaster declaration.

For the January 2025 Los Angeles fires, FEMA approved a Fire Management Assistance Grant on the same day the Palisades Fire ignited, and the President issued a major disaster declaration (FEMA-4856-DR) within days, covering physical damage and economic injury in Los Angeles County and economic injury loans in surrounding counties.9Federal Register. Presidential Declaration of a Major Disaster for the State of California

A federal declaration opens two main FEMA programs. Public Assistance gives grants to state and local governments for debris removal, emergency protective measures, and restoring roads, bridges, and water systems.10FEMA. Assistance for Governments and Private Non-Profits After a Disaster Individual Assistance helps residents directly with rental payments for temporary housing, home repair grants, reimbursement for emergency lodging, and money for medical expenses, funeral costs, personal property replacement, and childcare disruptions caused by the disaster.11FEMA.gov. Assistance for Housing and Other Needs

Two limits matter. FEMA assistance covers primary residences only, and it supplements insurance rather than replacing it. If you have insurance, you must file a claim and submit the settlement or denial letter before FEMA decides what it will cover.

Financial Relief Tied to the Declaration

Automatic IRS Deadline Extensions

A federal disaster declaration triggers IRS relief automatically. The IRS identifies affected taxpayers by location and postpones filing and payment deadlines without the taxpayer needing to do anything. For the January 2025 California wildfires, the IRS pushed deadlines to October 15, 2025 for residents of affected counties.12Internal Revenue Service. Tax Relief in Disaster Situations Taxpayers outside the designated disaster area who are still affected can call the IRS disaster hotline at 866-562-5227 to request the same relief.

SBA Disaster Loans

The Small Business Administration offers low-interest disaster loans once a federal declaration is in place. As of early 2026, homeowners can borrow up to $500,000 to repair or replace a primary residence, renters up to $100,000 for personal property, and businesses up to $2 million. Interest rates start as low as 3% for homeowners and renters, 4% for small businesses, and 3.625% for private nonprofits, with repayment terms up to 30 years.13U.S. Small Business Administration. Dont Wait for Insurance Settlement to Apply for Low Interest SBA Loans Interest doesn’t start accruing, and payments aren’t due, until 12 months after the first disbursement.

Casualty Loss Deduction

Property damage from a federally declared disaster may be deductible on your federal income tax return. Since 2018, personal casualty loss deductions are generally only available for losses caused by federally declared disasters. The deduction equals the lesser of your property’s adjusted basis or the drop in fair market value, minus insurance reimbursements. For personal property, you subtract $100 per event, then reduce the total by 10% of your adjusted gross income.14Internal Revenue Service. Topic No. 515, Casualty, Disaster, and Theft Losses

There’s an alternative if you don’t itemize. You can elect to treat a qualified disaster loss without itemizing, and the 10% adjusted gross income threshold doesn’t apply. You reduce each loss by $500 after subtracting insurance payments. You can also claim the loss on the previous year’s return rather than waiting, which can speed up a refund. Either way, you report the loss on IRS Form 4684.14Internal Revenue Service. Topic No. 515, Casualty, Disaster, and Theft Losses

How a State of Emergency Ends

California law requires the Governor to end a state of emergency “at the earliest possible date that conditions warrant.” Two paths close it: the Governor issues a proclamation declaring the emergency over, or the Legislature passes a concurrent resolution ending it.15Justia Law. California Government Code 8625-8629 – Article 13 State of Emergency The legislative option exists as a check on executive power.

Once either happens, emergency powers granted under the Emergency Services Act terminate, suspended statutes and regulations snap back into effect, and emergency orders lose their legal force. “Earliest possible date” is a judgment call in practice. With the January 2025 wildfire declaration still open more than a year later, large-scale disasters create recovery timelines measured in years, and closing a proclamation prematurely would cut off the legal authority needed for ongoing debris removal, rebuilding, and federal reimbursement.