Newsom’s bold wildfire reform is pared down by California lawmakers

California Gov. Gavin Newsom’s bid to overhaul wildfire liability and subrogation rules faced a rare rebuke from Democrats, who gutted his broad plan amid opposition from insurers, hedge funds, and trial lawyers and concerns it would amount to a utility bailout. The Legislature moved toward a much narrower compromise, with changes rolled into an urgency measure and a two‑thirds vote requirement, leaving the core reform unresolved for next year while PG&E and other utilities face ongoing financial risk and wildfire survivors’ damages.