FEMA Official Overseeing NM Fire Victims Fund Received Six-Figure Payout

Documents show the federal official in charge of a multi-billion-dollar fund to compensate victims of New Mexico's largest wildfire received a large payment for smoke damage at his home far from the fire.

Jan. 28, 2026 at 4:07pm

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Internal records reveal that Jay Mitchell, who runs the Federal Emergency Management Agency's Hermits Peak-Calf Canyon Fire Claims Office, received roughly $266,000 in compensation last July for smoke and ash cleaning costs for his home and adjacent casita in Angel Fire, a ski resort town more than an hour's drive from the hardest-hit areas of the 2022 wildfire. Mitchell's wife Lisa also received over $250,000 in payments for business-related losses. This has raised concerns among fire victims and elected officials that the claims office is prioritizing payouts to those outside the burn scar while leaving behind those who lost the most.

Why it matters

The Hermits Peak-Calf Canyon Fire was the largest wildfire in New Mexico's history, destroying over 900 homes and livelihoods. The federal government is overseeing a $5.45 billion compensation fund, but there are growing concerns that the process is not prioritizing those most impacted within the burn scar while making large payouts to those outside the affected area.

The details

Mitchell, who was named director of the Hermits Peak-Calf Canyon claims office in 2024, applied for smoke damage compensation in July of that year for his home and casita in Angel Fire, a ski resort town over an hour from the hardest-hit areas. However, nearby residents said they experienced minimal smoke and no visible damage. Mitchell's home is also less than 1,000 feet from a boundary line where claimants only need to sign a declaration to receive smoke compensation, while those on the other side would need additional proof. Meanwhile, many fire victims who lost their homes in the burn scar are still waiting for final compensation offers more than 3.5 years after the fire.

  • In April 2024, FEMA named Jay Mitchell as the new director of the Hermits Peak-Calf Canyon claims office.
  • In July 2024, Mitchell applied for and received a $266,000 payment for smoke and ash cleaning at his home in Angel Fire.
  • In August 2024, Mitchell's wife Lisa received over $250,000 in payments for business-related losses.
  • As of January 2026, 74 individuals or families who lost their homes in the wildfire are still awaiting final compensation offers.

The players

Jay Mitchell

The federal official in charge of the Hermits Peak-Calf Canyon Fire Claims Office, who received a six-figure payment for smoke damage at his home in Angel Fire.

Lisa Mitchell

Jay Mitchell's wife, a licensed real estate broker who received over $250,000 in payments for business-related losses during the fire.

Yolanda Cruz

A fire victim who moderates a Facebook page for fellow neighbors still navigating the recovery process, and who feels betrayed by Jay Mitchell's payout.

U.S. Sen. Ben Ray Luján

The New Mexico senator who has repeatedly called for greater transparency, improved processes, and faster claims decisions from FEMA.

U.S. Rep. Teresa Leger Fernández

The U.S. Representative for New Mexico's 3rd Congressional District, where the Hermits Peak-Calf Canyon Fire hit hardest, who continues to hear from constituents desperate for answers and compensation.

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What they’re saying

“It would be deeply disappointing and shows the need for greater transparency from FEMA.”

— Adán Serna, Communications director for U.S. Sen. Ben Ray Luján

“We didn't have any smoke damage. Now, sometimes you could smell it. Sometimes you were breathing some of it, but not heavily.”

— Dan Brown, Resident of Angel Fire

“There was no smoke damage to my house at all. We never had a day where smoke was that bad coming in.”

— Michael Martinez, Resident of Angel Fire

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.