NEW MEXICO (KRQE) – It's a major development that could reshape how much the feds payout to the victims of the largest wildfire in New Mexico history, sparked by the U.S. Forest Service (USFS). A judge recently sided with fire victims ruling the Federal Emergency Management Agency (FEMA) needs to pay for more than just property losses. Story continues below Podcast: Albuquerque Mayor Talks Crime, Homelessness, Goals for 2025 Crime: Former Bernalillo County deputy sentenced for tipping off drug dealer to 2021 raid Business: New owners talk about what’s next for South Valley batting cage “I mean this was going to be retirement for all of us. Then with the intentions of passing it down to our kids as well,” Hermits Peak Calf Canyon wildfire victim Toby Dolan told KRQE in 2024. He lost his home in the fire. It’s been nearly three years since the government-sparked wildfire devastated northern New Mexico. Now, a federal judge recently ruled the government must also pay victims for non-economic damages. “It's those non-tangible items. It’s those things like the inconvenience. The stress. The things they had to deal with because they were forced to evacuate,” said Managing Partner at Singleton Schreiber Brian Colón. In April 2022, an out-of-control prescribed burn sparked by the USFS tore through more than 341,000 acres and destroyed hundreds of homes. “It’s time for FEMA to step up, do the right thing, and fully compensate the victims of the Hermits Peak Calf Canyon Fire,” said Colón. Colón and his associates represent roughly 1,500 Hermits Peak Calf Canyon wildfire victims in lawsuits against FEMA. “From day one Singleton Schreiber and our colleagues have all taken the position that non-economic damages were not just available, but they were required to make the people of northern New Mexico whole." He argued economic damages like the loss of homes and property are obvious, but families lost much more and suffered from emotional and physical damage. The feds set aside nearly $4 billion to repay victims. More recently, Congress approved an additional $1.5 billion to compensate them. In the end, the massive $5.5 billion fund, Colón said, should be enough to cover claims. “It’s been too long. Let’s get a system in place and let’s make these people whole,” said Colón. The Hermit’s Peak/Calf Canyon Claims Office told KRQE in a statement: The Hermit’s Peak/Calf Canyon Claims Office has provided $1.69 billion in compensation on 12,658 claims submitted with documentation.The Claims Office remains committed to compensating New Mexicans who were impacted by the Hermit’s Peak/Calf Canyon fire and subsequent cascading events in a fair and equitable manner to the maximum extent permissible by law.  FEMA’s Claims Office is reviewing the ruling issued by the United States District Court for the District of New Mexico on December 17, 2024, regarding compensation for non-economic damages under the Hermit’s Peak/Calf Canyon Fire Assistance Act. We will work with the Department of Justice on an appropriate legal response once the review is complete. FEMA recently extended the deadline to start a claim through March 14.