In the immediate aftermath of the Salt and South Fork wildfires that erupted in June 2024 near Ruidoso, a mountain community in southeastern New Mexico, Governor Michelle Lujan Grisham swiftly declared a state of emergency, unlocking vital state funding to address the unfolding disaster. Her decisive action was soon followed by further executive orders in response to flash floods that inundated the region just days into the fire crisis. Throughout that year, Governor Lujan Grisham issued more than 85 executive orders concerning the affected area, authorizing close to $66 million in state resources, with additional funding allocated in 2025. This year alone has seen over 30 executive orders directing funds to the New Mexico Forestry Division for wildfire prevention and suppression efforts.

New Mexico stands as one of the nation’s most rapidly warming states, and its reliance on executive orders has surged dramatically, increasing fivefold since 2021. While some of these orders have supported initiatives like food assistance and crime reduction, the predominant drivers have been climate-related wildfires and floods. Michael Coleman, a spokesperson for the governor’s office, confirmed the direct correlation between the state’s escalating natural disasters and the rise in executive orders, noting that legislative limits of $750,000 per order often prove insufficient to cover the immense costs of major calamities. "Unfortunately, disasters do not abide by legislative caps," Coleman stated in an email, underscoring the challenge of managing catastrophic events within statutory financial boundaries.

For the small, rural communities most severely impacted, the allocated emergency funds have served as a crucial initial lifeline, according to state agencies. However, the increasing frequency and intensity of climate-fueled disasters present novel challenges that are still being navigated by a range of stakeholders, from local leaders and state agencies to the legislature. Significant debates are underway regarding the most appropriate sources for disaster relief funding. The extensive involvement of out-of-state firms in post-disaster recovery efforts has raised concerns about the diversion of emergency funds away from local economies. Furthermore, the process for securing federal disaster declarations and subsequent reimbursements, while intended to support state and local authorities, is often protracted and can take years to resolve, as exemplified by the Ruidoso situation.

The changing climate has demonstrably exacerbated four primary hazards facing New Mexico: drought, flooding, extreme heat, and wildfire, as documented by the Climate Policy Bureau within the state’s Energy, Minerals, and Natural Resource Department. Some New Mexicans, including state Representative Harlan Vincent of Ruidoso, have attributed the ferocity of the Salt and South Fork fires not to climate change, but to what he describes as "extreme mismanagement of our forests" and insufficient brush thinning.

New Mexico’s forests are indeed facing significant ecological stress. Reduced snowpack and hotter, drier summers have extended wildfire seasons, creating conditions ripe for conflagration. Compounding these issues are severe oscillations between extreme drought and periods of excessive rainfall, a phenomenon known as "hydro-climate whiplash." This volatile weather pattern has devastated communities like Ruidoso, and climate scientists project its increasing prevalence across the Western United States. For Lynn Crawford, the mayor of the Village of Ruidoso, the fires and subsequent floods merged into a continuous disaster, leaving a trail of destruction that impacted homes, infrastructure, and public spaces. The interconnectedness of climate disasters is further evidenced by the surge in flood warnings issued by the National Weather Service in Albuquerque during 2024; nearly 40% of the 278 warnings issued statewide occurred in areas that had recently experienced wildfires, highlighting the heightened vulnerability of burned landscapes to heavy rainfall.

Executive orders have played a pivotal role in the state’s response, particularly when local entities lack the financial capacity to manage the recovery efforts independently. Following the 2024 fires, New Mexico’s Department of Homeland Security and Emergency Response utilized $250 million from executive orders to fund a program that assisted in clearing fire and flood debris from over 1,000 private properties in the Ruidoso area. This emergency funding also supported the deployment of incident command teams, swift water rescue units, and sandbag operations, according to agency spokesperson Danielle Silva. While Ruidoso was designated a federal emergency, leading to the expectation of up to 75% reimbursement from the Federal Emergency Management Agency (FEMA), the state has received only $22.4 million to date, representing less than 9% of the eligible costs.

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

Ironically, the state is able to fund its response to these escalating climate disasters, in part, due to revenue generated by the fossil fuel industry, a primary contributor to climate change. New Mexico is a significant producer within the Permian Basin, the world’s largest oil-producing region. The oil and gas sector accounts for approximately 23% of the state’s carbon dioxide emissions and about 18% of its methane emissions, exceeding any other industry. The financial contributions from this sector are substantial; in 2025, oil and gas revenues were projected to constitute 37% of the state’s general fund, its primary source of operational capital.

Historically, a dedicated contingency account has provided funds for emergency declarations. However, the recent surge in emergency declarations has depleted this account, necessitating the use of the general fund for an estimated $300 million in emergency spending since 2023. The reliance on oil and gas revenue for state funding is a contentious issue in New Mexico, as it is elsewhere. Proponents argue that these revenues are essential for the state’s economic stability and fund vital public services, while critics contend that the financial benefits are overshadowed by the long-term environmental and societal costs associated with fossil fuel extraction and combustion. A coalition of environmental organizations, led by the Center for Biological Diversity, has criticized the state’s continued dependence on oil and gas revenues, asserting in a letter to the governor that ordinary New Mexicans bear the brunt of pollution, health risks, and escalating climate damage. The coalition further warned that the state budget has become "dangerously dependent on volatile fossil fuel revenues," leaving New Mexicans liable for billions of dollars in cleanup costs, including the estimated $700 million to $1.6 billion required to plug abandoned or "orphaned" oil and gas wells. 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," citing investments in universal child care and free college as examples. He also emphasized the governor’s commitment to ensuring 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 adequate funding, from any available source, to address the cascading costs of rebuilding in the wake of disaster. The total estimated damage from the Salt and South Fork fires reached $2 billion, according to the National Centers for Environmental Information, and Mayor Crawford of Ruidoso indicated that the financial burden continues to grow, particularly for homeowners lacking flood insurance. He drew a parallel to dealing with insurance companies after an accident, lamenting the protracted wait for federal reimbursements.

To mitigate these challenges, Representative Vincent co-authored legislation that established a revolving fund for federally declared natural disasters in New Mexico, which was passed by the state legislature in 2025. This fund now provides zero-interest loans to political subdivisions within the state, including counties, municipalities, land grants, and acequias. The mechanism allows the state to front disaster funds until FEMA reimbursement is received, at which point the recovered funds replenish the revolving account, supplemented by transfers from another account primarily supported by the state’s general fund. The natural disaster revolving fund is currently operational and holds a balance of $107 million.