The Federal Emergency Management Agency has filed with a bankruptcy for four-billion of the $13.5 billion Pacific Gas & Electric is offering to pay to victims of wildfires the utility company's faulty equipment is known to have sparked. The FEMA filing contends that American taxpayers should be compensated for clearing debris from burned-out properties and other services provided. The money offered by PG&E is part of the company's bankruptcy process.
Lawyers for wildfire victims quickly voiced objection to the FEMA request, arguing that diverting money to the federal government would unfairly slash the amount available for under-insured homeowners and local businesses. Former FEMA director James Lee Witt tells the Press Democrat that he was shocked to hear about the agency's request, saying FEMA is supposed to help victims not take money away from them.