FEMA Officials on Leave After Payouts Exposed

Director and deputy director of Hermits Peak/Calf Canyon Claims Office placed on administrative leave following 4 Investigates report.

Published on Feb. 12, 2026

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The director and deputy director of FEMA's Hermits Peak/Calf Canyon Claims Office have been placed on administrative leave after a 4 Investigates report revealed they received six-figure payouts, while others affected by the wildfire are still waiting for compensation nearly four years later.

Why it matters

This case raises concerns about transparency and potential mismanagement of federal disaster relief funds intended to help those impacted by the Hermits Peak/Calf Canyon wildfire. It also comes amid calls from New Mexico's congressional delegation for more oversight of how the claims office has spent billions of dollars allocated by Congress.

The details

Documents showed that FEMA Director Jay Mitchell's family was paid more than $524,000 for smoke, ash, and business interruptions, while his wife received over $258,000 for losses claimed by her real estate business. Deputy Director Jennifer Carbajal was also paid more than $146,000 on a claim that mirrored Mitchell's. Carbajal filed the claim through her own consulting business, which ceased activity shortly after the fire.

  • The Hermits Peak/Calf Canyon wildfire occurred nearly four years ago.
  • The 4 Investigates report that exposed the payouts to Mitchell and Carbajal was published on February 12, 2026.

The players

Jay Mitchell

The director of FEMA's Hermits Peak/Calf Canyon Claims Office, who received over $524,000 in payouts for his family's claims related to the wildfire.

Jennifer Carbajal

The deputy director of FEMA's Hermits Peak/Calf Canyon Claims Office, who received over $146,000 in payouts through her consulting business for claims related to the wildfire.

New Mexico's Congressional Delegation

Members of Congress from New Mexico who have called for more transparency in how the claims office has spent billions of dollars allocated by Congress for disaster relief.

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What’s next

The judge overseeing the claims process will likely review the actions of Mitchell and Carbajal and determine if any further disciplinary measures are warranted.

The takeaway

This case highlights the need for stronger oversight and accountability in the distribution of federal disaster relief funds to ensure the money reaches those truly in need, rather than being used for personal gain by those tasked with managing the process.