A battle is brewing between the federal government and the state of California over financial assistance to victims of the massive wildfires that ravaged California over the past several years. Lawyers for the victims settled with the embattled Pacific Gas & Electric (PG&E) utility, agreeing on a $13.5 billion settlement fund. But the Federal Emergency Management Agency (FEMA) blasted the utility, as the settlement may put the government in the position of having to claw back money from wildfire victims.
FEMA was apparently shut out of the negotiations surrounding the settlement, but still is being required to tap into the same settlement fund that pays victims in order to recoup the money it is owed by PG&E. And if the utility, which has filed for bankruptcy protection, is unable to pay the federal government, that may force the government to recoup its losses from victims who receive funds from PG&E.
To read more about this sorry situation, head over to Fox Business News.