New Mexico Governor Michelle Lujan Grisham has responded to a surge of climate-driven disasters, including devastating wildfires and flash floods, by significantly increasing the use of executive orders to allocate state funds. Following the June 2024 Salt and South Fork wildfires that ravaged the mountain town of Ruidoso, Governor Lujan Grisham swiftly declared a state of emergency, unlocking crucial state funding in the initial stages of the crisis. Her response expanded as flash floods compounded the damage days later, leading to a wave of subsequent executive actions. Over the course of that year, the governor issued more than 85 executive orders for the affected region, authorizing approximately $66 million in state financial aid, with further allocations continuing into 2025. This year alone, over 30 executive orders have already directed funds to the New Mexico Forestry Division, bolstering efforts for wildfire prevention and suppression.

New Mexico is experiencing some of the most rapid warming trends in the United States, a phenomenon directly linked to the dramatic increase in executive orders. Data indicates a fivefold rise in these orders since 2021. While some of these directives have addressed essential needs such as food assistance and crime reduction, the overwhelming majority have been in direct response to climate-related events, specifically wildfires and floods. Michael Coleman, a spokesperson for the governor’s office, confirmed this correlation, explaining that the legislative cap of $750,000 per executive order often falls far short of the actual costs incurred by large-scale calamities. "Unfortunately, disasters do not abide by legislative caps," Coleman stated in an email, underscoring the inadequacy of existing financial frameworks in the face of escalating natural disasters.

For the small, rural communities bearing the brunt of these events, the emergency funding has served as a critical first line of defense, according to state agencies. However, the escalating frequency and intensity of climate-fueled disasters present complex challenges that are still being navigated by a range of stakeholders, from local community leaders and state agencies to the state Legislature. Debates are ongoing regarding the optimal sources for this emergency funding, with concerns arising over the significant role of out-of-state firms in disaster cleanup operations, which diverts vital emergency funds away from impacted local economies. Furthermore, the process for obtaining federal reimbursement for declared emergencies, such as the one in Ruidoso, is often protracted, with the federal government taking years to reimburse state and local authorities for damages.

The climate policy bureau within New Mexico’s Energy, Minerals, and Natural Resources Department identifies four primary hazards currently afflicting the state: drought, flooding, extreme heat, and wildfire. These are all exacerbated by a changing climate. While some New Mexicans, like State Representative Harlan Vincent of Ruidoso, have attributed the rapid spread and intensity of the Salt and South Fork fires to "extreme mismanagement of our forests" and a lack of brush thinning, the underlying climatic shifts are undeniable. Unhealthy forests, characterized by low snowpack, hotter and drier summers, and extended wildfire seasons, are increasingly vulnerable. This is compounded by severe fluctuations between extreme drought and periods of above-average rainfall, a phenomenon meteorologists term "hydro-climate whiplash." This volatile pattern, which devastated Ruidoso, is projected by weather experts to become increasingly common across the Western United States.

Mayor Lynn Crawford of the Village of Ruidoso described the combined impact of the fires and floods as one continuous disaster. "It ended up in our yards, demolished our homes, demolished our bridges, demolished our streets, our infrastructure," he recounted, painting a stark picture of the destruction. The amplification of climate disasters by one another is evident in the surge of flood warnings issued by the National Weather Service in Albuquerque. In 2024, nearly 40% of the 278 warnings issued across New Mexico were in areas that had recently experienced wildfires, highlighting the increased susceptibility of burn scars to flooding.

Executive orders have proven instrumental in the response, particularly when local communities lack the capacity to cover disaster-related expenses. Following the 2024 fires, New Mexico’s Department of Homeland Security and Emergency Response utilized $250 million from executive orders for a program designed to clear fire and flood debris from over 1,000 private properties in the Ruidoso area. Danielle Silva, an agency spokesperson, confirmed via email that this emergency funding also supported incident command teams, swift water rescue operations, and sandbag deployments. Despite Ruidoso being declared a federal emergency, with the Federal Emergency Management Agency (FEMA) typically reimbursing up to 75% of eligible costs, the state has only received $22.4 million to date, representing less than 9% of the anticipated reimbursement.

A legislative report revealed that just two out-of-state companies secured nearly 60% of the emergency spending allocated for New Mexico’s largest disasters since 2022. One of these firms, Texas-based DRC Emergency Services, has faced accusations of overcharging, a claim disputed by the New Mexico Department of Homeland Security and Emergency Response. Representative Vincent, while acknowledging the necessity of emergency declarations, voiced criticism regarding the contractor selection process. "All the money that (emergency services companies) make in New Mexico goes back out of state and doesn’t stay in New Mexico," he stated, emphasizing the economic leakage.

Ironically, the state’s capacity to fund disaster relief is partly sustained by revenues generated from the very industry contributing significantly to climate change: oil and gas. New Mexico is a major player in the Permian Basin, the world’s largest oil-producing field. This industry accounts for approximately 23% of the state’s carbon dioxide emissions and about 18% of its methane emissions, more than any other sector. In 2025, revenues from the oil and gas industry were projected to constitute 37% of the state’s general fund, its primary operational budget.

Historically, a dedicated contingency account has provided funds for emergency declarations. However, the escalating number of emergencies in recent years has depleted this account, leading to an estimated $300 million in emergency spending since 2023 being drawn from the general fund. This reliance on oil and gas revenue for disaster funding is a contentious issue in New Mexico, as it is elsewhere. Supporters argue that these revenues are the state’s economic lifeblood, while critics contend that the financial benefits are overshadowed by the environmental and societal costs of fossil fuel extraction and combustion. A coalition of organizations, spearheaded by the Center for Biological Diversity, has criticized the state’s continued dependence on these revenues, warning in a letter to the governor that ordinary New Mexicans bear the burden of pollution, health risks, and escalating climate damage. "The state budget has grown dangerously dependent on volatile fossil fuel revenues," the coalition wrote, adding, "and New Mexicans are on the hook for billions of dollars in clean-up costs." The estimated cost to plug abandoned or "orphaned" oil and gas wells alone ranges between $700 million and $1.6 billion.

Governor Lujan Grisham’s spokesperson, Michael Coleman, defended the governor’s approach, stating that she has "taken a thoughtful approach to oil and gas that deploys its revenues to the best public uses in New Mexico." He cited initiatives like universal child care and free college as examples of how industry revenues have been channeled for public benefit. He also stressed that the governor has insisted "that the industry do better by the environment if they are going to operate in our state."

On the ground, local leaders are focused on securing sufficient funding, from any available source, to address the cascading costs of rebuilding after disasters. The Salt and South Fork fires alone caused an estimated $2 billion in damage, according to the National Centers for Environmental Information. Mayor Crawford of Ruidoso noted that the financial toll continues to rise as he works to secure federal funding for homeowners who lacked flood insurance. He likened the protracted wait for federal reimbursements to dealing with an insurance company after a car accident, where promises of payment are followed by years of waiting.

In an effort to streamline disaster relief and mitigate such delays, Representative Vincent co-authored a bill that established a revolving fund for federally declared natural disasters in New Mexico. This legislation was passed by the state Legislature in 2025. The natural disaster revolving fund now provides zero-interest loans to New Mexico’s political subdivisions, including counties, municipalities, land grants, and acequias. The fund operates by the state fronting the necessary money for a disaster until FEMA provides reimbursement, at which point those funds are used to replenish the revolving account, supplemented by transfers from another account primarily funded by the state’s general fund. Currently, this vital revolving fund possesses a balance of $107 million, offering a more immediate source of financial support for communities facing the devastating impacts of climate-induced emergencies.