FEMA wildfire fund: Officials on leave after payouts to themselves
- Las Vegas, New Mexico – Frustration is mounting among victims of the devastating 2022 wildfires in New Mexico as they continue to await promised federal assistance, while revelations...
- Sara Jo Mathews, a small business owner in Las Vegas, New Mexico, embodies the plight of many still struggling to rebuild their lives.
- The fire, the worst in New Mexico’s history, has left a trail of destruction and a complex claims process in its wake.
Las Vegas, New Mexico – Frustration is mounting among victims of the devastating 2022 wildfires in New Mexico as they continue to await promised federal assistance, while revelations emerge that a top Federal Emergency Management Agency (FEMA) official received a substantial payout from the very fund intended for their relief. The situation has prompted calls for accountability and raised serious questions about the administration of the disaster relief program.
Sara Jo Mathews, a small business owner in Las Vegas, New Mexico, embodies the plight of many still struggling to rebuild their lives. Mathews and her family actively participated in fighting the Hermits Peak/Calf Canyon fire, which ravaged the region, resulting in significant losses for her businesses. Despite this, she remains without a payment from the federal government. “They cannot figure out for the life of them how to pay us,” Mathews stated, “but they sure as hell figured out how to pay themselves.”
The fire, the worst in New Mexico’s history, has left a trail of destruction and a complex claims process in its wake. Victims report a frustratingly slow and complicated review process, with cases often closed without explanation or disbursement of funds. “Getting money from FEMA, that’s like getting blood from a rock,” Mathews lamented. “They’re not giving us anything.”
The catalyst for renewed scrutiny came with the revelation that Jay Mitchell, the FEMA director responsible for distributing compensation to wildfire victims, and his deputy, Jennifer Carbajal, each received six-figure payouts from the same fund in 2025. According to documents obtained by USA Today, Mitchell received $524,000 to repair smoke and ash damage to his home in Angel Fire, New Mexico, and to cover reported business losses incurred by his wife, Lisa Mitchell, a real estate broker. Carbajal and a woman identified as her ex-wife, Jennifer Sanchez, received a combined $267,000 for similar damages and business losses.
FEMA placed both Mitchell and Carbajal on administrative leave on , following reports by Source New Mexico. However, a statement from a FEMA deputy assistant administrator, Paul Judson, emphasized that the leave does not indicate a finding of wrongdoing. Judson also stated that Juan Ayala will oversee the office’s daily operations during the leave period.
The situation has drawn criticism from New Mexico’s elected officials. Governor Michelle Lujan Grisham’s office issued a statement calling the payouts “a big problem” and demanding Mitchell’s resignation. State Representative Joseph Sanchez echoed this sentiment, stating that residents of the impacted areas “deserve much better than how they have been treated by FEMA.”
The controversy unfolds against a backdrop of broader concerns about FEMA’s effectiveness and potential downsizing under the current administration. President Donald Trump has previously characterized FEMA as ineffective and has pursued a policy of reducing the agency’s workforce. A lawsuit filed in January 2025 by employees’ unions and public interest groups alleges plans for further cuts, potentially impacting over 10,000 of the agency’s 20,000 employees.
The compensation fund, established by Congress in September 2022 with $5.4 billion in funding, was intended to provide swift relief to those affected by the fire. However, the process has been plagued by difficulties. Victims report being required to submit extensive documentation, often facing repeated requests for the same information. Some claims have been closed without explanation, leaving applicants without recourse.
As of , FEMA had paid out $3.36 billion to 23,549 claimants, according to Senator Martin Heinrich’s office. The number of pending claims remains unclear, though community leaders estimate that at least 73 individuals who suffered total losses are still awaiting a resolution. An inspector general’s report from , revealed that 13% of claims were overdue for a response, with over 1,500 claims remaining unacknowledged after more than six months.
The impact of the fire extends beyond financial losses. The destruction of businesses, such as the El Rialto Restaurant in Las Vegas, has had a ripple effect on the local economy. Mathews notes that at least ten businesses in the small town have closed since the fire, representing a significant loss for the community. The ongoing flooding caused by the burn scars has further exacerbated the situation.
Despite the challenges, residents like Mathews remain resilient. “Long after the federal government forgets us, we’ll be here, pulling each other up, helping one another,” she said. “We have survived because of our resilience and our close-knit communities. And we’re not going to give up.”