New Mexico
About 1/3 of those who lost homes in Hermits Peak-Calf Canyon Fire have gotten final payment offers • Source New Mexico
The federal office overseeing compensation for New Mexico’s biggest-ever wildfire has finally released numbers showing it has made final payment offers to about a third of people who lost their homes in the blaze more than two years ago.
New Mexico’s congressional delegation had been pressing the Hermits Peak-Calf Canyon Fire claims office for that number and other information, asking what was taking so long.
The claims office – overseen by the Federal Emergency Management Agency – is tasked with paying out nearly $4 billion in compensation for the fire, caused by botched prescribed burns in early 2022. According to the latest figures, it’s paid out about $1.5 billion of that, including for lost business revenue, reforestation and homes lost in the fire.
As of Nov. 20, the office had received 272 claims for total losses of homes in the wildfire, according to responses the federal office gave to questions members of the delegation sent earlier this month.
Of those, 174 claimants received at least partial payments for their losses, and 98 of them received a final payment offer, according to the response letter shared with the delegation early last week and provided Wednesday to Source New Mexico.
It’s not clear from the response letter how much has been paid to those who lost their homes, or how many of the homeowners accepted the final payment offer, which is known as a “letter of determination.” Claimants who are unhappy with the amount the office offered can appeal.
The status of those who lost their homes in the fire has been an open question for months. A group of protesters gathered in front of the office’s Santa Fe headquarters in late October, calling on the office to prioritize compensation for those who lost their homes over more-trivial losses like smoke damage.
The office had paid about $400 million for smoke damage to about 4,200 claimants in a 2,200-square-mile area as of Sept. 25, using an internal map and a standardized calculator to quickly distribute payments averaging $94,500 each.
Internal FEMA smoke map shows large area where northern NM residents need little to prove losses
U.S. Sens. Martin Heinrich and Ben Ray Luján, as well as U.S. Rep. Teresa Leger Fernandez, all New Mexico Democrats, sent a letter Nov. 1 to the office’s leadership, saying “many New Mexicans continue to wait for the relief and compensation they are owed.” The letter asked 13 questions on a range of topics.
Heinrich also questioned FEMA Administrator Deanne Criswell about the issue during a hearing two weeks later. Heinrich told Criswell it seemed to him that those who lost everything in the fire were at the back of the line and asked her what the claims office was doing to address it.
Criswell responded that total-loss claims are more complicated and take more time, but the office has increased staff this year to handle the deluge of claims. The deadline to file an initial claim for losses incurred in the fire and ensuing floods, known as a “notice of loss,” is Dec. 20.
The claims office response letter also says officials created a “reconstruction team” that is entirely focused on compensating those who suffered a total loss of their primary or secondary homes.
The back-and-forth over delays in compensation occurs as an additional $1.5 billion in compensation hangs in the balance. President Joe Biden carved out the extra funding for wildfire survivors in a nearly $100 billion disaster response package he’s hoping Congress will approve by the end of the year.
If approved, that would bring the total awarded for compensation $5.45 billion for the state’s biggest-ever wildfire, one that destroyed several hundred homes and burned through a 534-square mile area.
Spokespersons for Heinrich and Luján did not respond to requests for comment on the office’s response letter.
The delegation is hopeful legislation will extend the deadline from the rapidly approaching Dec. 20 deadline, but they urged those who suffered losses to apply right away, given the uncertainty with a new Congress and a narrow timeframe.
Office defends food loss policy
One of the 13 questions the delegation asked related to how the office pays people for food lost in the fire. Across the burn scar, many families in rural areas kept stores of food in extra freezers, which were either destroyed or stopped working amid widespread power outages during the fire.
FEMA’s claims office pays people for lost food based on the gender and age of the claimant, based off another federal agency’s guidance. A man aged 19 to 50 receives $104.70 for a week’s worth of lost food. A woman in the same age range gets $93.
The policy is based on the United States Department of Agriculture’s food plans, which the agency says have been created since 1894 to “illustrate how a healthy diet can be achieved at various costs.”
Claims office pays men more than women for food lost in state’s biggest wildfire
The delegation’s Nov. 1 letter asked the claims office how it was “ensuring equity in food loss payments,” and, if it were to change its policy to make it more equitable, how it could make up the difference to those who had previously been shortchanged.
The office’s response letter says leaders have no intention of changing the food loss policy, however. It did a “thorough review” of the process after consulting with Heinrich’s office and the USDA.
“Our review concluded that our current standardized rates for food loss are consistent with the methodology used in the creation of the USDA Food Plan tables,” the letter reads.
Some wildfire survivors told Source New Mexico they thought the process was unnecessarily complicated and unfair. The office has previously said it cannot calculate how much money has been paid to date for food losses, including how much more men have been paid than women.
The office, in its response, also doubled down on its practice of paying different hourly wages based on the county in which do-it-yourself repairs were done. The same work would be reimbursed at $18.97 an hour in Mora County, for example, versus $29.49 an hour in Santa Fe County.
It said the hourly wages were calculated based on analyses of Census and federal Bureau of Labor Statistics data, which considered the costs of goods and services that are typically higher in urban areas than rural areas.
The governor sets the agenda for the session, including for the budget, so here is what they are looking at so far.
SANTA FE, N.M. — As the regular session of the New Mexico Legislature is set to begin Jan. 20, lawmakers have already filed dozens of bills.
Bills include prohibiting book bans at public libraries and protections against AI, specifically the distribution of sensitive and “Deepfake” images
Juvenile justice reform is, again, a hot topic. House Bill 25 would allow access to someone’s juvenile records during a background check if they’re trying to buy a gun.
Gov. Michelle Lujan Grisham sets the agenda and puts forth the proposed budget lawmakers will address during the session. The governor is calling for lawmakers to take up an $11.3 billion budget for the 2027 fiscal year, which is up 4.6% from current spending levels.
Where would that money go? More than $600 million would go to universal free child care. Meanwhile, more than $200 million would go to health care and to protect against federal funding cuts.
There is also $65 million for statewide affordable housing initiatives and $19 million for public safety.
After years of failure to land a “big fish” business for New Mexico’s economy (or effectively use the oil and gas revenues to grow the economy) Gov. Michelle Lujan Grisham with the help of her Economic Development Secretary Rob Black have lured no fewer than three large data centers to New Mexico. These data centers are being built to serve the booming world of Artificial Intelligence (AI), and they will have profound impacts on New Mexico.
It is our view that having these data centers locate in New Mexico is better than having them locate elsewhere. While we have many differences of opinion with this governor, we are pleased to see her get serious about growing and diversifying New Mexico’s oil-dependent economy albeit quite late in her second term.
Sadly, the governor and legislature have chosen not to use broad based economic reforms like deregulation or tax cuts to improve New Mexico’s competitiveness. But, with the failure of her “preferred” economic development “wins” like Maxeon and Ebon solar both of which the governor announced a few years ago, but haven’t panned out, the focus on a more realistic strategy is welcome and long overdue.
Currently, three new data centers are slated to be built in New Mexico:
- Oracle’s Project Jupiter in Santa Teresa with an investment of $165 billion.
- Project Zenith slated to be built in Roswell amounts to a $11.7 billion investment.
- New Era Energy & Digital, Inc. While the overall investment is unclear, the energy requirement is the largest of the three at 7 gigawatts (that’s seven times the power used by the City of San Francisco).
What is a data center? Basically, they are the real-world computing infrastructure that makes up the Internet. The rise of AI requires vast new computing power. It is critical that these facilities have uninterrupted electricity.
That electricity is going to be largely generated by traditional sources like natural gas and possibly nuclear. That contravenes New Mexico’s Energy Transition Act of 2019 which was adopted by this Gov. and many of the legislators still in office. Under the Act electrical power emissions are supposed to be eliminated in a few years.
With the amount of money being invested in these facilities and the simple fact that wind and solar and other “renewable” energy sources aren’t going to get the job done. In 2025 the Legislature passed and MLG signed HB 93 which allows for the creation of “microgrids” that won’t tax the grid and make our electricity more expensive, but the ETA will have to be amended or ignored to provide enough electricity for these data centers. There’s no other option.
New Mexicans have every right to wonder why powerful friends of the governor can set up their own natural gas microgrids while the rest of us face rising costs and decreased reliability from so-called “renewables.” Don’t get me wrong, having these data centers come to New Mexico is an economic boon.
But it comes tempered with massive subsidies including a 30-year property tax exemption and up to $165 billion in industrial revenue bonds. New Mexico is ideally suited as a destination for these data centers with its favorable climate and lack of natural disasters like hurricanes, tornadoes, and floods. We shouldn’t be giving away such massive subsidies.
Welcoming the data center boom to New Mexico better than rejecting them and pushing them to locate in other states. There is no way to avoid CO2 emissions whether they happen here or somewhere else. But, there are questions about both the electricity demand and subsidies that must be addressed as New Mexico’s data center boom begins.
What will the Legislature, radical environmental groups, and future governors of our state do to hinder (or help) bring these data centers to our State? That is an open question that depends heavily on upcoming statewide elections. It is important that New Mexicans understand and appreciate these complicated issues.
Paul Gessing is president of New Mexico’s Rio Grande Foundation. The Rio Grande Foundation is an independent, nonpartisan, tax-exempt research and educational organization dedicated to promoting prosperity for New Mexico based on principles of limited government, economic freedom and individual responsibility
Debating Mike McDaniel’s fit for Detroit Lions OC job
San Francisco District Attorney speaks on city’s crime drop
Woman arrested near downtown Dallas with 39 bags of crack cocaine, police say
Did you follow the local news this week? Take our Greater Boston news quiz.
Denver weather: Snow tails off Friday, but morning commute could be slick
Florida High School Football Rankings: Top 25 teams – Oct. 21
Cleary's 21 help Le Moyne down Central Connecticut State 69-64 in OT
How old is Bo Nix? What to know about Oregon quarterback ahead of 2024 NFL Draft
99th annual Pony Swim held in Virginia
Video: ‘It Didn’t Have to Happen This Way:’ U.Va. Faculty Call for Review of Police Response to Protests
Trump plans to meet with Venezuela opposition leader Maria Corina Machado next week
Trump says meeting Iran’s ‘Crown Prince’ Pahlavi would not be appropriate
Federal immigration agents shoot 2 people in Portland, Oregon, police say
“This is the Berlin Wall moment in Iran”: Masih Alinejad on the nationwide protests
Video: What Trump Told Us About the ICE Shooting
-
Detroit, MI6 days ago2 hospitalized after shooting on Lodge Freeway in Detroit
-
Technology3 days agoPower bank feature creep is out of control
-
Dallas, TX4 days agoDefensive coordinator candidates who could improve Cowboys’ brutal secondary in 2026
-
Health5 days agoViral New Year reset routine is helping people adopt healthier habits
-
Nebraska2 days agoOregon State LB transfer Dexter Foster commits to Nebraska
-
Iowa3 days agoPat McAfee praises Audi Crooks, plays hype song for Iowa State star
-
Nebraska3 days agoNebraska-based pizza chain Godfather’s Pizza is set to open a new location in Queen Creek
-
Entertainment2 days agoSpotify digs in on podcasts with new Hollywood studios