HELP!! Dog was playing with a dead squirrel?

We have this grass area across my house and I usually let my dogs run around for their exercise. Well today, I let them go and my terrier mix straight for the dead squirrel.He started to pick it up with his mouth and I freaked out and tried to shoo him away. My chihuahua mix just sniffed it. My terrier mix ran back to it and started licking it. The squirrel looked like it had some blood on it but he didn't touch or lick that part. I put him back on his leash and walked back home. My question is, is there a chance of him getting rabies? Will my chihuahua mix get rabies? Also is there a high chance rate of squirrels having rabies in California? Both of my dogs are up to date with their shots. Should I isolate them from each other? Thank you for your help