New Mexico sues FEMA for $61 million in wildfire compensation

Claim seeks payment for National Guard deployments

September 8, 2026

SANTA FE – Governor Michelle Lujan Grisham’s administration sued the Federal Emergency Management Agency (FEMA) in U.S. District Court today seeking more than $61 million to fund the National Guard’s ongoing wildfire and flood response in the Hermit’s Peak/Calf Canyon area over the next decade – a request FEMA has inexplicably denied twice.

In April 2022, two prescribed burns by the U.S. Forest Service flared out of control and ignited the Hermit's Peak/Calf Canyon Fire. It burned 341,471 acres across four northern New Mexico counties, making it the largest wildfire in the history of the state of New Mexico. Heavy rain on the massive burn scar later that spring triggered widespread flooding, a problem that persists to this day during heavy rainfall.

Gov. Lujan Grisham deployed the New Mexico National Guard to help residents in harm’s way with evacuations, removal of debris and flood damage prevention. The National Guard’s work in and around the burn scar is ongoing, and this essential resource must remain available to help prevent additional property damage and loss of life.

“Northern New Mexicans shouldn’t have to worry about their safety every time it rains,” said Gov. Lujan Grisham. “They were already the victims of a fire started by the federal government, and now they’re the victims of a federal bureaucracy more interested in finding ways to say ‘no’ than ways to keep people safe. It’s unconscionable that FEMA refuses to pay for a National Guard response that must continue for many years due to federal negligence.”

In recognition of the federal government’s responsibility for the damage caused by the Hermit’s Peak/Calf Canyon fire and subsequent flooding, Congress appropriated more than $5 billion to assist northern New Mexico residents and local and state governments. The Hermit's Peak/Calf Canyon Fire Assistance Act established the program and provided an initial appropriation of $2.5 billion in 2022.

In addition to the $61 million in National Guard costs, the state of New Mexico has 22 other FEMA claims pending totaling $128 million.

The New Mexico Department of Homeland Security and Emergency Management (DHSEM) submitted a claim to FEMA in 2024 seeking funding for ongoing National Guard assistance with flooding in the burn scar. That claim, along with a subsequent appeal, was denied.

Recovery is ongoing and burn scar flooding is anticipated for years to come. The state will continue to support recovery and response efforts and provide vital resources to the communities harmed.