Just days after the Salt and South Fork wildfires erupted in June 2024, devastating the mountain town of Ruidoso in southeastern New Mexico, Governor Michelle Lujan Grisham swiftly declared a state of emergency, mobilizing crucial state funding at the outset of the disaster. Her administration continued to respond to the unfolding crisis, issuing further executive orders in the wake of subsequent flash floods that swept through the same area, exacerbating the initial destruction. Over the course of that year, Governor Lujan Grisham issued more than 85 executive orders related to the region, allocating nearly $66 million in state resources, with additional measures and funding following in 2025. This year alone, over 30 executive orders have already directed financial support to the New Mexico Forestry Division, bolstering efforts to prevent and combat wildfires.

New Mexico finds itself among the fastest-warming states in the United States, a trend starkly reflected in the dramatic fivefold increase in executive orders since 2021. While some of these declarations have addressed critical needs such as food assistance and crime reduction, the overwhelming majority have been enacted in response to climate-driven wildfires and floods. Michael Coleman, a spokesperson for the governor’s office, affirmed the direct correlation between the state’s natural disasters and the heightened frequency of executive orders. He explained that these orders are often necessary because legislative limits cap each individual order at $750,000, an amount frequently insufficient to cover the immense costs associated with major calamities. "Unfortunately, disasters do not abide by legislative caps," Coleman stated in an email, underscoring the inadequacy of statutory financial limitations in the face of overwhelming natural events.

For the small, rural communities that have borne the brunt of these disasters, the allocated funds have served as a vital initial lifeline, according to state agencies. However, the increasing frequency and intensity of climate-fueled disasters are presenting unprecedented challenges, leaving many stakeholders, from local leaders and state agencies to the legislature, grappling with how best to manage the escalating situation. Active discussions are underway regarding the most appropriate sources for disaster relief funding. Moreover, the significant involvement of out-of-state firms in the cleanup of major disasters has raised concerns, as substantial emergency funds are diverted away from hard-hit local economies. Compounding these issues, the process for receiving federal reimbursement for declared emergencies, such as the one in Ruidoso, is often protracted, with recovery efforts frequently taking years to materialize.

According to the Climate Policy Bureau within New Mexico’s Energy, Minerals, and Natural Resource Department, the changing climate has intensified four primary hazards currently afflicting the state: drought, flooding, extreme heat, and wildfire. Some residents, like State Representative Harlan Vincent of Ruidoso, have expressed skepticism about the direct link between climate change and the severity of these events. Representative Vincent has attributed the rapid spread and intensity of the Salt and South Fork fires to what he describes as "extreme mismanagement of our forests" and a lack of adequate brush thinning, rather than solely focusing on climate factors.

New Mexico’s forests are indeed facing significant ecological stress. Reduced snowpack and hotter, drier summers have contributed to extended wildfire seasons. This is further compounded by extreme fluctuations between severe drought conditions and periods of above-average rainfall, a phenomenon referred to as "hydro-climate whiplash." This volatile pattern has had devastating consequences, as witnessed in Ruidoso, and weather experts predict its increasing prevalence across the Western United States. Lynn Crawford, the mayor of the Village of Ruidoso, described the combined impact of the fires and floods as a single, relentless disaster that encroached upon homes, infrastructure, and public spaces. "It ended up in our yard(s), demolished our homes, demolished our bridges, demolished our streets, our infrastructure," he recounted.

The interconnected nature of climate disasters is becoming increasingly evident, as demonstrated by the surge in flood warnings issued by the National Weather Service in Albuquerque during 2024. Of the 278 warnings issued statewide that year, nearly 40% were concentrated in areas that had recently experienced wildfires, highlighting the heightened vulnerability of burn scar regions to flooding. Executive orders have played a critical role in the state’s response, particularly when local communities lack the financial capacity to manage the aftermath of such events independently. Following the 2024 fires, New Mexico’s Department of Homeland Security and Emergency Response utilized $250 million from executive order funds for a program aimed at clearing fire and flood debris from over 1,000 private properties in the Ruidoso area. Emergency order funding also supported the deployment of incident command teams, swift water rescue units, and sandbag operations, according to Danielle Silva, an agency spokesperson. While Ruidoso qualified for a federal disaster declaration, and FEMA is expected to reimburse up to 75% of eligible costs, the agency has provided only $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 most significant disasters since 2022. One of these companies, 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 acknowledging the importance of emergency declarations, expressed concern regarding the state’s 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 remarked, emphasizing the economic leakage resulting from the reliance on external firms.

Ironically, the state is able to finance disaster relief, in part, through revenues generated by the very industry contributing significantly to climate change: oil and gas. New Mexico is home to a substantial portion of the Permian Basin, one of the world’s most prolific oil-producing regions. The oil and gas sector accounts for approximately 23% of the state’s carbon dioxide emissions and about 18% of its methane emissions, surpassing all other sectors in its contribution to greenhouse gas output. These industry revenues are projected to constitute 37% of the state’s general fund in 2025, serving as the primary source of operating capital for New Mexico.

Traditionally, a contingency account has provided funding for emergency declarations. However, the escalating number of emergencies in recent years has depleted this reserve. Consequently, an estimated $300 million in emergency spending since 2023 has been drawn from the general fund. The reliance on oil and gas revenue for disaster response is a contentious issue in New Mexico, mirroring debates in other regions. Proponents argue that these revenues are essential for the state’s economic stability, while critics contend that the financial benefits are overshadowed by the long-term environmental and societal costs associated with fossil fuel extraction and consumption. A coalition of environmental organizations, led by the Center for Biological Diversity, recently criticized the state’s continued dependence on oil and gas income, asserting in a letter to the governor that ordinary New Mexicans bear the brunt of pollution, health risks, and escalating climate damage. "The state budget has grown dangerously dependent on volatile fossil fuel revenues," the coalition stated, "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, stated that the governor has adopted a "thoughtful approach to oil and gas that deploys its revenues to the best public uses in New Mexico," citing universal child care and free college as examples of programs funded by the industry. He added 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 post-disaster recovery. The total damage from the Salt and South Fork fires was estimated at $2 billion, according to the National Centers for Environmental Information, and Mayor Crawford of Ruidoso notes that the financial burden continues to grow as he seeks federal assistance for homeowners lacking flood insurance. "It’s like dealing with your insurance company when your car gets wrecked," Crawford explained, drawing a parallel to the lengthy wait for federal reimbursements. "Your insurance company’s saying, ‘We’re gonna pay you,’ and then three, four years later, you’re still waiting on it."

To help alleviate such challenges, Representative Vincent co-authored legislation establishing a revolving fund for federally declared natural disasters in New Mexico. The state legislature passed this bill in 2025. The fund now provides zero-interest loans to New Mexico’s political subdivisions, including counties, municipalities, land grants, and acequias. Under the legislation, the state front-loads the financial assistance for a disaster until FEMA reimbursement is received, at which point these funds are used to 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.