Hermit's Peak/Calf Canyon Fire Assistance Act

The Hermit's Peak/Calf Canyon Fire Assistance Act (Division G of Public Law 117-180) established a dedicated federal compensation program for persons harmed by the largest wildfires in New Mexico history — fires that were caused by U.S. Forest Service prescribed burn operations that escaped containment in spring 2022. Congress initially authorized $2.5 billion in compensation and directed FEMA to process claims for property damage, economic losses, and personal injuries caused by the fires; subsequent supplementals (December 2022 and December 2024) brought total funding to approximately $5.45 billion. Unlike standard FEMA disaster assistance, this program provides full compensatory damages — not capped relief grants — because the fires were directly caused by federal government action.

Legal Authority

• P.L. 117-180, Division G — Hermit's Peak/Calf Canyon Fire Assistance Act (2022); establishes the dedicated compensation program for fire victims; directs FEMA to administer claims; appropriates $2.5 billion in initial funding; provides that claimants may recover full compensatory damages, distinguishing this program from standard capped disaster assistance
• 44 CFR Part 296 — FEMA's implementing regulation; establishes the claims process, eligible categories of loss (real property, personal property, business loss, economic loss, personal injury, wrongful death), documentation requirements, notice of loss deadlines, and appeal procedures
• Federal Tort Claims Act (28 U.S.C. §§ 2671–2680) — The FTCA provides the underlying liability framework: the fires resulted from negligent USFS prescribed burns; claimants are compensated as they would be under a government tort action, but through the streamlined administrative program rather than federal court litigation

Key Mechanics

The Hermit's Peak/Calf Canyon fires (April–August 2022) were ignited by two USFS prescribed burn operations that escaped containment, ultimately burning approximately 341,735 acres in northern New Mexico — the largest wildfire in state history. Because the federal government caused the fires, Congress created a direct compensation program through FEMA rather than routing claims through the FTCA or standard disaster declarations. FEMA processes claims under 44 CFR Part 296 in three categories: (1) real property losses (structural damage and land value diminution); (2) economic losses (lost business income, agricultural losses, reduced property values); and (3) personal injury and wrongful death. Claims must be supported by documentation — surveys, contractor estimates, financial records — and FEMA assigns claims reviewers. The program does not cap individual recovery at standard FEMA disaster assistance levels; instead, claimants are entitled to full compensatory damages up to the amount of their actual documented loss. Appeals from adverse claim determinations are available to an internal FEMA appeal process, and unresolved claims may ultimately be litigated. The program has faced criticism for slow processing — as of early 2026, hundreds of millions of dollars in claims remained unresolved more than three years after the fires.

Current Rule (2026)

What This Rule Does

The regulation implements Congress's directive to make whole the residents, businesses, and landowners harmed by two U.S. Forest Service prescribed burns that escaped in spring 2022: the Hermit's Peak Fire (ignited April 6, 2022 as a prescribed burn) and the Calf Canyon Fire (ignited as a smoldering pile from a February 2022 prescribed burn). The two fires merged to form a single catastrophic wildfire that burned more than 341,000 acres across northern New Mexico's San Miguel and Mora counties — the largest wildfire in state history — destroying hundreds of structures, forcing mass evacuations, and contaminating watersheds serving communities including Las Vegas, New Mexico.

Because the fires were started by the federal government, Congress determined that affected persons were entitled to full compensatory damages rather than standard FEMA disaster grants. The program differs from ordinary FEMA Individual Assistance in two fundamental ways: (1) the government bears responsibility for causing the harm, and (2) damages are not limited to a per-household maximum — claimants receive actual losses.

FEMA established a dedicated Claims Office in Taos, New Mexico to process claims with "sensitivity to the cultural and economic circumstances of the affected communities" — a recognition that northern New Mexico's population is predominantly Hispanic and Indigenous, with multigenerational land ownership patterns and culturally significant acequia water systems, and that standard federal claims processes can be inaccessible to these communities.

Key Provisions

• § 296.5 — Claims process overview: claimants file a Notice of Loss to register their intent to seek compensation; claims examiners from the FEMA Claims Office then work with claimants to develop documentation of losses; an Authorized Official's Determination is issued; claimants who disagree may file an Administrative Appeal; if still dissatisfied, claimants may elect arbitration or judicial review
• § 296.10 — Filing a claim: any "Injured Person" may bring a claim by filing a Notice of Loss with the Claims Office; the Notice of Loss is the threshold document — claimants who missed the filing deadline may request reopening under § 296.35
• § 296.11 — Filing deadline: the original deadline for filing a Notice of Loss was November 14, 2024 — two years after the Act's enactment; FEMA may reopen claims filed after the deadline upon a showing of good cause
• § 296.12 — Election of remedies: a claimant who accepts a final award under the Act waives all other claims for the same injuries against the United States (no double recovery from both this program and a Federal Tort Claims Act suit); this election-of-remedies requirement is the trade-off for the more accessible claims process
• § 296.21 — Allowable damages: the Act provides for actual compensatory damages for (a) real property damage (structures, fencing, orchards, forests); (b) personal property damage; (c) business and economic losses (income, lost profits, livestock losses); (d) emergency costs (evacuation, temporary housing, debris removal); and (e) personal injury including wrongful death; damages must be proven by a preponderance of evidence; future losses and diminishment in property value are compensable
• § 296.30 — Establishing injuries: claimants may use any competent evidence — appraisals, contractor estimates, business records, income tax returns, photographs, and expert reports; FEMA claims examiners are directed to assist claimants in identifying and gathering required documentation
• § 296.31 — Reimbursement of claim expenses: FEMA reimburses claimants for reasonable costs incurred in documenting their claims — appraisal fees, expert witness fees, and other documentation costs; this provision reduces the financial burden on claimants who need professional assistance to document complex losses
• § 296.33 — Partial payments: at the claimant's request, FEMA may issue partial payments on individual components of a claim while other components remain under review — allowing claimants to receive recovery for undisputed losses without waiting for the entire claim to resolve
• § 296.40–§ 296.42 — Appeal and arbitration: claimants may appeal the Authorized Official's Determination to the Director of the Claims Office; if still dissatisfied after the Administrative Appeal, claimants may elect binding arbitration by an independent arbitrator, or may seek judicial review in federal court

How It Affects You

If you were affected by the Hermit's Peak or Calf Canyon Fire in 2022 — whether your home burned, your livestock died, your acequia was damaged, your business lost income, or your family was evacuated — you may be eligible for compensation under this program.

The program covers a wider range of losses than standard FEMA individual assistance: loss of agricultural income, damage to traditional acequia irrigation systems, diminishment in property value from watershed contamination, and other losses specific to northern New Mexico's land-use patterns are all compensable if you can document them. FEMA's Claims Office is staffed with Spanish-speaking personnel and is designed to assist claimants who need help gathering documentation.

The key limitation is the election of remedies: accepting a final award forecloses a Federal Tort Claims Act lawsuit against the Forest Service for the same losses. Claimants with large losses who believe litigation could yield a higher recovery should consult with an attorney before accepting a final award. Conversely, the Act's damages framework — particularly the reimbursement of documentation costs and partial payment options — makes the administrative claims process more accessible than FTCA litigation for most claimants.

Statutory Authority

This rule implements:

• P.L. 117-180, Division G — Hermit's Peak/Calf Canyon Fire Assistance Act, which initially authorized $2.5 billion (later increased to ~$5.45 billion through Dec 2022 and Dec 2024 supplementals) and directed FEMA to establish a claims program with full compensatory damages for victims of the two Forest Service-caused wildfires

Recent Rulemakings

The regulation was issued in 2022-2023 to implement the new statute; no subsequent amendments through early 2026. FEMA extended claim-filing deadlines and issued guidance on documentation requirements through administrative notices.

Pending Action