$2.5B Fire Relief: Where Did the Money Go? + New Questions in Palisades Arson Case

First, an NBC4 investigation into California’s $2.5 billion wildfire relief package announced after the January 2025 fires. Records show only a portion of the fund has been spent — with much of the money routed through state agencies, and significant amounts still untouched more than a year later. We examine where the money went, why fire victims say they haven’t seen more direct aid, and new questions about how the funding was structured and managed. Then, new developments ahead of the federal arson trial tied to the Palisades Fire. Pretrial hearings are raising legal questions about how prosecutors plan to present evidence — including disputes over what jurors will be asked to consider when deciding guilt across multiple charges. The judge has signaled concern that the case presentation could create confusion about key legal issues.