The federal government typically covers 75% of rebuilding costs after a major disaster. President-elect Trump has threatened to withhold firefighting money from California.

Shangri-La Construction took loans against state-funded housing projects, moved money into other bank accounts and left projects unfinished.

The money was included in the $1.7 trillion omnibus spending bill signed Dec. 22 by President Joe Biden, ensuring funding of the military and government agencies until next September.