Holdsworth & Inkwell
Hermit's Peak/Calf Canyon Fire Assistance Act FY2026 Funding Updates
Industry Update

Hermit's Peak/Calf Canyon Fire Assistance Act FY2026 Funding Updates

The Hermit's Peak/Calf Canyon Fire Claims Office (HPCCFCO) continues to administer compensation claims under the Hermit's Peak/Calf Canyon Fire Assistance Act of 2022 (Public Law 117-180), with FY2026 Congressional appropriations recently enacted that provide continued funding for claims processing operations. This update addresses the funding status, current claims processing activity, and the operational implications for affected entities and counsel handling federal compensation matters.

FY2026 Funding Status

Congress appropriated continued funding for HPCCFCO operations through FY2026, supporting claims intake, evaluation, and compensation determinations. The funding cycle continues the framework established in the 2022 Act and reflects the sustained federal commitment to the compensation framework. The appropriations support FEMA's operational capacity to process the substantial claims volume that the New Mexico fires generated.

Claims Processing Update

HPCCFCO continues to process individual and entity compensation claims under the statutory framework. The administrative practice that has emerged from FY2023 through FY2025 has refined the framework's operational details, with specific patterns developing around claim valuation, consequential damages treatment, business loss calculation, and the procedural mechanics of administrative review. Counsel handling claims under the framework should expect continued procedural refinement and should engage HPCCFCO administrative practice directly rather than relying on the framework's text alone.

Implications for Affected Entities and Counsel

For affected entities and the counsel handling their claims, the continued funding cycle provides operational certainty about HPCCFCO's claim processing capacity through FY2026. Claims should continue to be prepared and filed under the established administrative procedures, with attention to the developed practice patterns that govern claim evaluation. The Wildfire Litigation Updates publication will continue to track HPCCFCO administrative developments and any congressional activity around the framework's continued operation.

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