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Efforts to reduce greenhouse gas emissions are projected to reduce demand for oil and natural gas, creating economic risks for the hundreds of communities and hundreds of thousands of workers who depend on those industries. However, very little research has sought to identify policy options for building economic resilience in oil-and gas-producing communities. In this analysis, we use semistructured interviews with stakeholders in New Mexico’s oil-and gas-producing regions to understand how the federal government can support local efforts to strengthen economic diversification. We find that although local stakeholders are generally skeptical of the federal government, they would be receptive to federal support. However, numerous challenges stand in the way of effective federal intervention, including insufficient capacity to access and administer federal grants, barriers to economic development on federal lands, and disagreements among stakeholders about certain energy technologies, particularly carbon capture. In addition, it is not clear which economic sectors might replace the high-paying jobs and substantial tax revenues generated by oil and gas development. Our interviews indicate that building economic resilience in the state’s oil and gas communities will be challenging, and require early, substantive, and ongoing engagement with a wide range of local stakeholders to ensure that federal resources support local priorities.