FireAid Hires Law Firm to Review How It Distributed $100 Million as Trump Calls for Investigation

The comprehensive review follows heightened criticism from right-wing politicians over how the wildfire relief org distributed its funds

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Billie Eilish and Billy Joe Armstrong perform at FireAid. (Credit: Getty Images)

FireAid has hired law firm Latham & Watkins to review how it distributed the $100 million it’s raised in wildfire relief, TheWrap has learned, amid heightened scrutiny from Republican lawmakers and calls from President Donald Trump for a federal investigation.

Following the devastating L.A. wildfires in the Palisades and Altadena in January, FireAid hosted a mammoth five-hour concert – featuring performances from Stevie Nicks, Lady Gaga, Billie Eilish and the Red Hot Chili Peppers – that raised $100 million for fire victims and wildfire relief. The organization received guidance from longstanding L.A. philanthropic arm the Annenberg Foundation to help distribute the funds in a manner that made the most impact on those affected by the fires and the communities that needed rebuilding. 

How those grants were handled is now being called in question, as California Rep. Kevin Kiley requested a Department of Justice investigation from U.S. Attorney General Pam Bondi last week, claiming “the money has been misallocated.”

The Republican representative for Rocklin, Calif. earned support from Trump, who blasted Gov. Gavin Newsom and FireAid on his Truth Social platform, saying “LOOKS LIKE ANOTHER DEMOCRAT INSPIRED SCAM. 100 MILLION DOLLARS IS MISSING.” 

FireAid brought on Latham & Watkins to directly address concerns that the organization was not transparent with where the $100 million was going. Former assistant attorney general and partner at the firm Makan Delrahim wrote a letter to Kiley, outlining his plan to review the organization and clarifying how the funds in the first two phases have been distributed thus far. 

“Your letter suggests that FireAid funds were improperly ‘diverted’ and that ‘donor intent’ was somehow disregarded because certain charities received a grant. We respectfully submit that this is not the case,” Delrahim said in the letter obtained and reviewed by TheWrap. “FireAid has disbursed grants to nonprofits and organizations which are able to provide direct relief, across a broad spectrum of services, to survivors of the fires and their communities.”

FireAid also addressed the allegations on social media Saturday with a “statement on misinformation about FireAid.” The statement pointed to a Los Angeles Times story published July 23 that contacted over 100 organizations that received FireAid funds to assess the impact its efforts have had on impacted communities. 

So far, FireAid has distributed two rounds of grants, totaling $75 million. In Phase 1, $50 million was distributed to over 120 nonprofit organizations that reached over 150,000 community members affected by the fires. In Phase 2, the organization targeted specific recovery efforts, giving $17 million to wildfire recovery at large, $6 million to continued relief for fire survivors with food and emergency supplies, $500,000 to “symbols of hope” for the community and $1 million for a project with the Los Angeles Fire Department Foundation to provide brush vehicles for Altadena and the Palisades. 

Delrahim also refuted claims that FireAid has not been transparent about the recipients of its grantmaking process, citing the organization’s interactive grant site, which documents every organization that has received funding and the purpose of each grant.

The grants were vetted by Goldman Sachs. The year-end results of the grant distributions will be audited by KPMG and are due by December.

Another prominent figure alleging mismanagement within FireAid’s grant-making process is former “The Hills” star Spencer Pratt, who has been vocal on his social media about his distrust in the handling of its funds. The reality star and his wife Heidi Montag lost their home in the Palisades fire and have been outspoken about their need for aid in the months since. On July 21, he accused Gov. Newsom, his wife Jennifer Siebel Newsom and their California Volunteers organization as being a recipient of the Phase 2 funds from FireAid.

The official X account of California Volunteers released a statement later that evening: “California Volunteers, Office of the Governor, is not a recipient of FireAid. The nonprofit, California Volunteers Fund, has been publicly identified as a potential grantee. While we’re independent of them, they financially support volunteer efforts in CA, including our programs.”

While FireAid’s $100 million has the potential to make an impact, it is just a portion of the estimated $250 billion in damage inflicted on Altadena and the Palisades. Applications for the final round of small nonprofit grants are still open.

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