California Attorney General Rob Bonta has led a coalition of 20 attorneys general in opposing a recent U.S. Small Business Administration (SBA) interim final rule that would allow federal preemption of state and local permitting requirements after declared disasters. The coalition submitted a comment letter arguing that the rule, which permits contractors to self-certify compliance with local building, health, and safety codes for projects funded by SBA’s Disaster Loan Program, is both unlawful and poorly designed to uphold safety standards.
“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 needing to repair or replace damaged property after presidentially-declared disasters. On January 23, 2026, President Trump signed Executive Order 14377 criticizing California and Los Angeles County officials over wildfire recovery delays. Six days later, SBA issued its interim final rule without prior notice or public comment.
State and local authorities have traditionally managed construction regulations related to public health and safety. According to Attorney General Bonta’s coalition, Congress did not give SBA power to override these laws—especially regarding permitting processes—which remain under state jurisdiction.
The coalition also pointed out that delays in rebuilding efforts are often caused by factors such as insurance issues or high costs rather than permit processes. Local agencies have reportedly expedited home rebuilding permits at nearly triple the rate compared with previous years before recent wildfires.
In their letter, the attorneys general argue:
– The rule exceeds SBA’s statutory authority because Congress did not grant it preemption powers.
– The rule is arbitrary since there is no evidence showing conflicts between state/local permitting requirements and SBA’s loan program.
– The vagueness of the rule could cause legal uncertainty post-disaster.
– The lack of advance notice or opportunity for public input violated administrative procedures.
– The action contradicts principles outlined in Executive Order 13132 signed in 1999 by President Bill Clinton on federalism.
Attorney General 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 State and the District of Columbia.
The California Attorney General’s office serves as chief law enforcement authority for California statewide operations under Rob Bonta’s leadership (official website). It plays a key role within California’s executive branch as outlined in the state constitution (official website), promoting transparency through initiatives like OpenJustice (official website), advancing policies on civil rights protection (official website), consumer economic security (official website), environmental justice (official website), and protecting public rights across all regions of California (official website).
