The board of county commissioners contracted with El Paso-based architectural firm Trost and Trost to design the new three-room schoolhouse in Lincoln, awarding the construction contract to Porfirio Chavez. In 1921, the school district moved the primary classrooms for 4th through 9th grades from the courthouse to the newly constructed building adjacent to the Courthouse. After the new school opened in 1921, the district continued using the former courthouse as overflow space for the Manual Training Arts programs, Domestic Science classes, and Physical Culture courses.  The people of Lincoln also used the ample courtroom space on the second floor for local meetings and events, such as community dances, and the school board installed a platform stage in the room for performances.  As the population of Lincoln diminished, the need for additional classroom space also decreased; by the early 1930s, the courthouse was once again empty and deteriorating. 

Structural issues at the empty courthouse paled in comparison to the Board of Education’s problems with the new schoolhouse after they attempted to expand the building in 1935. After starting renovations on May 5, 1935, workers ran into a significant problem after only three days of work. The foundation of the school’s rear wall failed, leading to the total collapse of the east side of the structure—nearly crushing several students attending classes inside. Thankfully, no one suffered any severe injuries, but the school board needed a quick solution to Lincoln's sudden lack of classroom space. Fortunately for the community, the recently established Works Progress Administration provided emergency funding for a new, larger building designed by Roswell architect Dick Garner and constructed by local contractor B.G. Robinson. 

Roman Maes was born in Lincoln on February 28, 1903. He lived most of his early life in San Patricio but moved back to Lincoln in the late 1920s with his wife, Teodora. The couple purchased a home directly across from the courthouse, and Roman drove a school bus for the school district.  In the late 1920s and early 1930s, Maes witnessed a growth in the number of tourists passing through Lincoln. Along with its convenient location along U.S. Highway 380, this increase in traffic owed itself to a renewed interest in the story of Billy the Kid and the Lincoln County War—fueled by the 1926 book The Saga of Billy the Kid, written by Walter Noble Burns. Maes saw an opportunity, opened a saloon, La Paloma Bar, and filled it with relics from the old West. Maes went one step further and put signs on the abandoned courthouse building, encouraging tourists to explore the building—using a key he kept at his store and museum.

Roman Maes was not alone in his interest in preserving and promoting Lincoln as a historic site and destination for tourists. In 1934, the Chaves County Historical and Archaeological Society secured the deed for the old Torreon in Lincoln from the State of New Mexico. The group then raised funds and combined them with support from the Federal Emergency Relief Administration and the Works Progress Administration to restore the historic landmark, dedicating it on February 23, 1935.  The successful preservation of the Torreon encouraged local community members and leaders in Santa Fe and Washington to think more broadly about the future of Lincoln. In early 1937, United States Senator Carl Hatch met with National Park Service leaders to discuss declaring the old courthouse in Lincoln a National Monument.  The New Mexico State Senate passed a “Memorial” in February 1937, supporting Hatch’s efforts and requesting the Senate Public Lands Committee to consider introducing legislation authorizing the National Park Service to take control of the courthouse and other properties in Lincoln. However, legislators at the federal level responded slowly, and local leaders began looking for more support from the local community. 

In 1937, citizens in Lincoln County organized the Lincoln County Society of Art, History, and Archaeology (LCSAHA). Founding members, including Larry H. Dow, F.H. Hall, George T. McQuillen, and George Titsworth, worked with the Assistant Director of the New Mexico History Museum, Dr. Reginald Fisher, to draft bylaws and rules of procedures.  From its inception, the LCSAHA maintained an organizational connection to the New Mexico History Museum. Article III of the society’s bylaws stated that the group was to “cooperate with the Museum of New Mexico toward the end that a branch of the State Museum may be granted to the society.” 

Once established, the new society filled its board of trustees with members from the Lincoln community, who were well-schooled in the history and culture of the region. These included Wilbur Coe, Albert Pfingsten, John Penfield, and artist Peter Hurd. Ex-officio board members included State Senate President Pro Tempore Loise Coe, state Senator Perry Sears, State Representative Hector Johnson, and Museum of New Mexico Director Reginald Fisher.  During the 13th session of the New Mexico State Legislature, L.P. Hall introduced House Bill 114, “Making the old Lincoln County Courthouse a state museum.” Senator Louise Coe sponsored a similar bill on the senate side of the legislature, SJR 6. Coe’s legislation recommended, “Making a branch of the state museum of the old Lincoln County courthouse and grounds and designating them as a state monument.”  The House of Representatives unanimously passed HB 114 on February 16th, 1937, and Governor Clyde Tingley signed the bill into law on February 22, 1937.  

The LCSAHA wasted little time assisting in securing state title to the courthouse and an 89’ x 226’ lot surrounding it. On May 20th, 1937, the State of New Mexico officially took ownership of the property and building from the Lincoln County Board of Education and, in early 1938, declared the building an official State Monument.  With the property secured, the LCSAHA and Museum of New Mexico sought funding and expertise to lead the restoration of the historic building. The museum petitioned the Works Progress Administration (WPA) to fund the extensive preservation work, and in February 1938, President Franklin Roosevelt authorized $8,657.00 for the project.  

At the recommendation of Edgar Hewett, director of the School of American Research and the New Mexico History Museum, the WPA selected Jerome W. Hendron to oversee the physical restoration of the courthouse. Hendron, a graduate of the University of New Mexico and a pupil of Hewett’s had spent several field seasons working as an archaeologist and custodian at Bandelier National Monument. Specifically, the 26-year-old Hendron had worked on restoring several significant kivas for the National Park Service and assisted in developing the agency’s “Ruins Restoration Program.” Hendron’s experience with traditional building methods and historical research made him an ideal candidate for leading the complex project in Lincoln. 

Jerome Hendron and his crew of laborers arrived in Lincoln in April 1938. In consultation with the LCSAHA, Hendron and the New Mexico History Museum elected to attempt to restore the courthouse to its appearance during the Lincoln County War and “to the time when Billy the Kid made his escape, in 1881.”  Hendron immersed himself in Lincoln's history, seeking out and interviewing anyone who remembered the courthouse during its earlier years. These interviewees included former regulator George Coe, Mrs. Amelia Bolton Church, whose father, John Bolton, served as Lincoln Postmaster at the courthouse, and Mrs. Lily Casey Klasner—who was engaged to Bob Olinger at the time of his murder.   Hendron also placed ads in local newspapers soliciting images of the building detailing what it might have looked like at the time of Billy the Kid’s escape—unfortunately, it seems that no new photos surfaced  

On April 6, 1938, Hendron’s team began their work. Hendron employed a diverse group of laborers comprised of men skilled in various construction arts, including masonry, carpentry, roofing, and excavation. After more than a year of tireless work, Hendron and his team completed their restoration of the Courthouse on May 20, 1939, only nine hours before their deadline. 

On Sunday, July 30, 1939, more than 1,500 people gathered along the street in front of the courthouse in Lincoln to participate in the new museum’s official dedication. Dignitaries traveled from every corner of the state to attend the affair, including Governor John E. Miles. Miles later noted in an interview that the ceremony was unique because three former governors—George Curry, Miguel Otero Sr., and James Hinkle—also attended.