FEMA Officials Receive Payouts as New Mexico Fire Victims Wait

Revelations of six-figure payments to FEMA employees raise questions about agency's handling of wildfire compensation fund

Published on Feb. 14, 2026

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Four years after the worst wildfire in New Mexico's history, victims are still waiting for federal assistance while the FEMA officials in charge of distributing the funds have already received large payouts for their own losses. The revelations have sparked outrage and demands for accountability from state and federal lawmakers.

Why it matters

The FEMA payouts to its own employees have further eroded public trust in the agency's ability to fairly and effectively distribute the $5.4 billion compensation fund set up by Congress to help wildfire victims rebuild their homes and businesses. The slow, frustrating claims process has left many struggling families and small businesses without the resources they need to recover.

The details

FEMA has placed the director and deputy director of the Santa Fe claims office on administrative leave after it was revealed they each received six-figure payouts from the wildfire compensation fund. Jay Mitchell, the director, and his wife Lisa were awarded $524,000, while his deputy Jennifer Carbajal and her ex-wife Jennifer Sanchez received $267,000. This has outraged victims like Sara Jo Mathews, whose businesses suffered substantial losses, as they are still waiting for their claims to be processed amid a slow and complicated review process.

  • The Hermits Peak/Calf Canyon Fire burned over 341,417 acres across northern New Mexico between April and June 2022.
  • Congress created a $5.4 billion compensation fund in September 2022 to help wildfire victims.
  • Jay Mitchell was hired in April 2024 to oversee the FEMA claims office responsible for distributing the funds.
  • As of February 4, 2026, FEMA had paid 23,549 claims totaling $3.36 billion, but the number of pending claims is unclear.
  • An inspector general's report in February 2025 found that 13% of claims were overdue a response from FEMA.

The players

Sara Jo Mathews

A business owner in Las Vegas, New Mexico whose restaurants and other businesses suffered substantial losses in the wildfire.

Jay Mitchell

The director of the FEMA claims office in Santa Fe, New Mexico who received a $524,000 payout from the wildfire compensation fund.

Lisa Mitchell

Jay Mitchell's wife, who also received a portion of the $524,000 payout from the FEMA compensation fund.

Jennifer Carbajal

The deputy director of the FEMA claims office in Santa Fe, New Mexico who received a $267,000 payout from the wildfire compensation fund.

Jennifer Sanchez

Jennifer Carbajal's ex-wife, who also received a portion of the $267,000 payout from the FEMA compensation fund.

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What they’re saying

“We're being harassed for absolutely no wrongdoing.”

— Lisa Mitchell (USA TODAY)

“It's a slap in the face that Mr. Mitchell and his wife got paid out. He should be ashamed of himself.”

— Maria Lowe, Community Activist (USA TODAY)

“When the person in charge of claims moves himself to the front of the line and receives a half-million-dollar payout while thousands of others are still waiting to be made whole, that's a big problem.”

— Michael Coleman, Spokesman for New Mexico Governor Michelle Lujan Grisham (USA TODAY)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Jay Mitchell to remain on administrative leave.

The takeaway

The FEMA payouts to its own employees have further eroded public trust in the agency's ability to fairly distribute the wildfire compensation funds, leaving many victims frustrated and questioning the integrity of the process. This case highlights the need for greater oversight and accountability in how disaster relief funds are managed and disbursed.