Watch the careful wording for how President Joe Biden said the federal taxpayer will “cover the cost for the response” meaning the recovery efforts like clearing debris in the LA fires. That does not cover rebuilding or reconstruction. That will be on state and city taxpayers. Already a dozen insurers fled California.  The state has a $68 billion budget deficit. The federal government has never bailed out a US state, the closest it came to that was the 1975 bail out of New York City, and that was in the form of $2.3 billion in loans.