Brief

The Community Investment Department is requesting to reallocate additional assistance grant funds from the LA County Fire Recovery program to help workers and businesses in Boyle Heights affected by the Lineage Fire. The motion passed the Economic Development and Jobs Committee on August 18, 2026, and is now pending final consideration in the Budget and Finance Committee. The file seeks to direct relief resources toward impacted community members and local enterprises.

Full summary

This file authorizes the City to redirect up to $940,000 in existing LA County Fire Additional Assistance Grant funds — originally awarded in response to the January 2025 wildfires — to support workers and businesses in Boyle Heights harmed by the Lineage Fire. On June 17, 2026, a massive fire broke out at a Lineage, Inc. cold storage warehouse in Boyle Heights, prompting a shelter-in-place order and a particle pollution advisory. Governor Newsom declared a state of emergency for the county three days later. The fire is estimated to have displaced roughly 120 Lineage employees and disrupted numerous surrounding businesses, which reported income losses from smoke-related closures, restricted customer access, and reduced staffing. The reallocation is necessary in part because the original wildfire grant program has significantly underperformed enrollment targets. As of July 13, 2026, only 30 individuals had been served and roughly $310,000 spent of a $2.87 million award — largely because strict WIOA eligibility rules require proof of work authorization, which excluded many domestic workers such as gardeners, nannies, and housekeepers in the wildfire-affected areas. With the grant set to expire March 31, 2027, the Community Investment Department and the County's Department of Economic Opportunity sought a program modification from the state Employment Development Department to expand eligibility and redirect unspent funds toward the Lineage Fire recovery. The Community Investment Department proposes concentrating $940,000 at the Boyle Heights WorkSource Center, operated by Managed Career Solutions, SPC, raising that center's total allocation from $148,225 to $1,088,225 while leaving other WorkSource centers' allocations unchanged. Up to $250,000 of that total would be subcontracted to the Boyle Heights BusinessSource Center, operated by New Economics for Women, to provide layoff aversion services and business consulting. Services available to the targeted minimum of 100 workers and 50 businesses include wage support for lost wages, job retraining, transitional employment, emergency supportive services, and personal protective equipment. The Workforce Development Board approved the reallocation on July 21, 2026, and $250,000 was made available immediately; the remaining $690,000 requires City Council and Mayoral approval. There is no impact to the City General Fund. The Economic Development and Jobs Committee approved the item on August 18, 2026 — the key new development — and the file is now awaiting action in the Budget and Finance Committee before it can advance to the full Council for final adoption.

Activity (9)

• 2026-09-01 Budget and Finance Committee concurred with the Economic Development and Jobs Committee's action of August 18, 206.
• 2026-08-28 City Clerk rereferred item to Ad Hoc Committee for Boyle Heights Fire Recovery, pursuant to Council File No. 26-2000.
• 2026-08-28 Budget and Finance Committee scheduled item for committee meeting on September 1, 2026.
• 2026-08-28 Ad Hoc Committee for Boyle Heights Fire Recovery waived consideration of item .
• 2026-08-18 Economic Development and Jobs Committee approved item(s) .
• 2026-08-18 Economic Development and Jobs Committee transmitted Council File to Budget and Finance Committee.
• 2026-08-14 Economic Development and Jobs Committee scheduled item for committee meeting on August 18, 2026.
• 2026-08-07 Community Investment Department document(s) referred to Budget and Finance Committee; Economic Development and Jobs Committee.
• 2026-08-06 Document submitted by Community Investment Department, dated August 3, 2026.

Documents (4)

• 2026-09-01 Communication(s) from Public · communication
• 2026-09-01 Speaker Card(s) · speaker_card
• 2026-08-18 Transmittal to Budget and Finance Committee · transmittal
• 2026-08-03 Report from Community Investment Department · report