Jay Mitchell, the former administrator of the Hermits Peak-Calf Canyon Fire Claims Office, is no longer employed by the Federal Emergency Management Agency (FEMA) following a mutually agreed decision not to extend his contract, he confirmed. Mitchell’s departure comes nearly five months after FEMA placed him on paid administrative leave amid scrutiny over payments he and his wife received from the wildfire compensation fund he oversaw.

Mitchell was suspended in February after an investigation revealed he and his wife accepted more than $500,000 from a multibillion-dollar fund established to compensate victims of the Hermits Peak-Calf Canyon Fire. Records obtained by news organizations indicated Mitchell received approximately $266,000 for smoke damage to his home in Angel Fire, located several miles from the fire’s perimeter. Meanwhile, his wife, a Realtor, reportedly received $250,000 for unspecified business losses.

The fund, valued at $5.45 billion, was established by FEMA in late 2022 following congressional direction to compensate those affected by the wildfire. The Hermits Peak-Calf Canyon Fire was triggered by two failed prescribed burns conducted by the U.S. Forest Service earlier that year. The wildfire swept across 534 square miles, largely impacting Mora and San Miguel counties, and resulted in the destruction of hundreds of homes.

Mitchell assumed leadership of the wildfire claims office in April 2024. Within months, he submitted claims for damages caused by smoke at his residence in Angel Fire. The payments to Mitchell and his wife have raised questions about the oversight and administration of the compensation fund. Federal authorities have not disclosed whether any formal investigation or disciplinary actions remain underway following Mitchell’s departure.

FEMA had no public comment on the circumstances surrounding Mitchell’s exit beyond confirming the mutual agreement not to renew his contract. Mitchell himself defended the payments, characterizing the conclusion of his employment as a mutual arrangement between him and the agency.

The controversy adds to growing concerns about the management of wildfire compensation efforts following major disasters, spotlighting the complexities of administering large relief funds intended for widespread community recovery.