New Mexico sues feds over refusing to reimburse state for $61M in wildfire costs

Michelle Lujan Grisham on Sept. 8, 2026, announced that her office had sued the Federal Emergency Management Agency for refusing to reimburse the New Mexico National Guard for costs related to the 2022 Hermits Peak-Calf Canyon Fire. (Patrick Lohmann/Source NM) New Mexico Gov. Michelle Lujan Grisham on Tuesday announced that her office had sued the Federal Emergency Management Agency for failing to reimburse the New Mexico National Guard for at least $61 million in costs it incurred fighting a 2022 wildfire that the federal government inadvertently ignited. The 2022 Hermits Peak-Calf Canyon Fire burned a roughly 534-square-mile area in northern New Mexico after two federal prescribed burns escaped containment lines and merged into the state’s biggest-ever wildfire. Congress later that year approved a multi-billion-dollar compensation program for families, businesses and government agencies that suffered losses or incurred costs while responding to the blaze.

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