New Mexico Governor Michelle Lujan Grisham’s swift response to the devastating Salt and South Fork wildfires that erupted near Ruidoso in June 2024, characterized by a flurry of executive orders and the immediate allocation of state funding, underscores the growing urgency of climate-related emergencies in the state. These initial actions were soon followed by further executive directives in response to flash floods that ravaged the same region mere days into the fire crisis. Over the course of that year, Governor Lujan Grisham issued more than 85 executive orders pertaining to the Ruidoso area, authorizing nearly $66 million in state aid, with subsequent orders continuing into 2025 and over 30 issued so far this year specifically to bolster the New Mexico Forestry Division’s wildfire prevention and suppression efforts.

This dramatic increase in executive orders is directly linked to New Mexico’s status as one of the fastest-warming states in the U.S., with the frequency of such declarations having surged fivefold since 2021. While some of these orders have addressed other critical issues like food assistance and crime reduction, the overwhelming majority have been necessitated by climate-driven wildfires and flooding events. Michael Coleman, a spokesperson for the governor’s office, confirmed this correlation, explaining that the Legislature’s cap of $750,000 per executive order often falls far short of the actual costs incurred by major disasters, prompting the need for repeated declarations. "Unfortunately, disasters do not abide by legislative caps," Coleman stated in an email, highlighting the inadequacy of existing financial frameworks in the face of escalating natural calamities.

For the small, rural communities bearing the brunt of these disasters, the funding provided through these executive orders has served as a crucial first line of defense, according to state agencies. However, the escalating frequency and intensity of climate-fueled disasters are presenting new and complex challenges that are still being navigated by a range of stakeholders, from local community leaders and state agencies to the Legislature. Ongoing debates revolve around the most appropriate and sustainable sources for disaster relief funding. Furthermore, the significant involvement of out-of-state firms in the cleanup and recovery efforts following major disasters has raised concerns about emergency funds being diverted away from hard-hit local economies. Compounding these issues is the often protracted and burdensome process of obtaining federal reimbursement for declared emergencies, a process that can stretch for years, leaving state and local authorities to shoulder immediate costs.

The Climate Policy Bureau within New Mexico’s Energy, Minerals, and Natural Resources Department identifies drought, flooding, extreme heat, and wildfire as the four primary hazards currently afflicting the state, all exacerbated by a changing climate. While some New Mexicans, such as State Representative Harlan Vincent of Ruidoso, attribute the rapid spread and intensity of fires like the Salt and South Fork to "extreme mismanagement of our forests" and insufficient brush thinning, a growing body of scientific evidence points to the profound influence of climate change. New Mexico’s forests are undeniably in a precarious state, characterized by low snowpack, hotter and drier summers, and consequently, extended wildfire seasons. This is further compounded by severe swings between extreme drought and periods of heavy rainfall, a phenomenon known as "hydro-climate whiplash." This volatile pattern, which devastatingly impacted Ruidoso, is projected by weather experts to become increasingly common across the Western United States.

Lynn Crawford, the mayor of the Village of Ruidoso, described the combined impact of the fires and subsequent floods as one continuous disaster, stating, "It ended up in our yard(s), demolished our homes, demolished our bridges, demolished our streets, our infrastructure." The interconnectedness of climate disasters is further evidenced by the surge in flood warnings issued by the National Weather Service in Albuquerque. In 2024 alone, nearly 40% of the 278 warnings issued across New Mexico were for areas within recent burn scars, illustrating how wildfire devastation creates conditions ripe for intensified flooding.

Executive orders have proven instrumental in facilitating the immediate response to these crises, particularly when local communities lack the financial capacity to manage the recovery independently. Following the 2024 fires, for instance, New Mexico’s Department of Homeland Security and Emergency Management utilized $250 million in executive order funds for a program designed to clear fire and flood debris from over 1,000 private properties in the Ruidoso area. According to Danielle Silva, an agency spokesperson, emergency order funding also supported critical response efforts such as deploying incident command teams, positioning swift water rescue teams, and facilitating sandbag operations. Although Ruidoso was declared a federal disaster, prompting FEMA to be responsible for reimbursing up to 75% of eligible costs, the agency had, as of the report, provided only $22.4 million, a mere fraction of the anticipated federal contribution.

A legislative report revealed that two out-of-state companies alone 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 that the New Mexico Department of Homeland Security and Emergency Response disputes. Representative Vincent, while expressing gratitude for the emergency declarations, voiced criticism regarding the contractor selection process, noting, "All the money that (emergency services companies) make in New Mexico goes back out of state and doesn’t stay in New Mexico."

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

Traditionally, a contingency account has served as the source for emergency declaration funding. However, the escalating number of emergency declarations in recent years has depleted this account, leading to an estimated $300 million in emergency spending since 2023 being drawn directly from the general fund. This reliance on oil and gas revenues for disaster response, while a critical financial lifeline for New Mexico, is a point of contention. Supporters emphasize the industry’s revenue generation as vital to the state’s economy, while critics argue that the financial benefits are overshadowed by the environmental and societal costs associated with fossil fuel extraction and combustion.

A coalition of organizations, spearheaded by the Center for Biological Diversity, has publicly criticized the state’s continued dependence on oil and gas funding. In a letter to the governor, they asserted that everyday New Mexicans are bearing the consequences through 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 responsible for billions of dollars in cleanup costs. The estimated expense of plugging 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," citing universal childcare and free college as examples of initiatives funded by the industry. He also emphasized the governor’s insistence that "the industry do better by the environment if they are going to operate in our state."

On the ground, local leaders are grappling with the immediate and overwhelming costs of rebuilding after disasters, prioritizing the procurement of any available funding, regardless of its source. The Salt and South Fork fires alone inflicted an estimated $2 billion in damages, according to the National Centers for Environmental Information. Mayor Crawford of Ruidoso highlighted the ongoing challenge of securing federal funding for homeowners who lacked flood insurance, comparing the process to dealing with an insurance company after a car accident, where promises of payment are followed by years of waiting.

To address such persistent challenges, Representative Vincent co-authored a bill, passed by the state Legislature in 2025, to establish a revolving fund specifically for federally declared natural disasters in New Mexico. This fund now provides zero-interest loans to New Mexico’s political subdivisions, including counties, municipalities, land grants, and acequias. Under the legislation, the state initially fronts the disaster funds, which are then replenished by FEMA reimbursements and transfers from another account primarily funded by the state’s general fund. The natural disaster revolving fund is currently operational and holds a balance of $107 million, offering a more stable and immediate financial mechanism for disaster recovery.