As climate change accelerates extreme weather disasters, the mental health of the impacted communities is a rising concern. In a recent study of 725 Californians, we showed that individuals that were directly exposed to California’s deadliest wildfire, the Camp Fire of 2018, had significantly greater chronic symptoms of post-traumatic stress disorder, anxiety and depression than control individuals not exposed to the fires. Here, we study a subsample of these individuals: directly exposed (n = 27), indirectly exposed (who witnessed the fire but were not directly impacted, n = 21), versus age and gender-matched non-exposed controls (n = 27). All participants underwent cognitive testing with synchronized electroencephalography (EEG) brain recordings. In our sample, 67% of the individuals directly exposed to the fire reported having experienced recent trauma, while 14% of the indirectly exposed individuals and 0% of the non-exposed controls reported recent trauma exposure. Fire-exposed individuals showed significant cognitive deficits, particularly on the interference processing task and greater stimulus-evoked fronto-parietal activity as measured on this task. Across all subjects, we found that stimulus-evoked activity in left frontal cortex was associated with overall improved interference processing efficiency, suggesting the increased activity observed in fire-exposed individuals may reflect a compensatory increase in cortical processes associated with cognitive control. To the best of our knowledge, this is the first study to examine the cognitive and underlying neural impacts of recent climate trauma.