California congresswoman introduces bill to end GoFundMe and FEMA financial conflict

Friday, March 21, 2025 5:53PM
Proposed bill aims to end GoFundMe and FEMA financial conflict
A California congresswoman is looking to help fire victims who are receiving less federal funding after accepting money via crowdfunding.

A California congresswoman is looking to help fire victims who are receiving less federal funding after accepting money via crowdfunding.

Many fire victims from January's wildfires received money through GoFundMe accounts, but did the generosity of others actually lower the federal aid funding for them?

"Your house was gone, but you had to figure out how to get back," said Dot Wong, who lost her home in the Eaton Fire.

She said friends wanted to help her by setting up a GoFundMe page.

"The GoFundMe... has been helping us pay our bills right now, because we still have bills," said Wong.

But she's finding out that accepting that money could affect assistance from FEMA.

ABC7's story back in January explained how FEMA provides some financial assistance for those who lost homes or other possessions in a natural disaster. But, it only covers things not covered by something else.

Los Angeles County wildfire victims are turning to GoFundMe to get help quickly. However, the fundraising page may impact what you get from FEMA. Here's what you need to know.

"FEMA, by law, cannot duplicate benefits. So, we can't pay for things that have already been paid for by other sources," said FEMA spokesperson Nicole Wilson back in January.

That's why Rep. Friedman introduced the Don't Penalize Victim Act - allow people to use crowdsource funding.

"It ensures that disaster victims are not punished just for receiving support from their community, and it provides clarity so that victims don't have to decipher confusing federal policies at the same time they're recovering from a disaster," said Rep. Laura Friedman from Burbank.

FEMA also can't pay for things that your home or auto insurance might cover.

Wong said in three months she's only received $11,000.

"We need to get back to our houses but it's going to take us a long, long time," she said.

Friedman's bill does have bi-partisan support and she is hopeful it can move quickly through Congress.

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