New Mexico state spending plan seeks more federal Medicaid dollars as Donald Trump takes office
New Mexico legislative leaders are recommending a 5.7% general fund spending increase for the coming fiscal year
SANTA FE, N.M. — Leading New Mexico legislators on Wednesday recommended a 5.7% general fund spending increase for the coming fiscal year that emphasizes health care access, public school improvements, and early education and childcare programs that can boost household finances.
The lead budget writing committee to the Democratic-led Legislature proposed a $577 million increase to $10.8 billion for the fiscal year running from July 2025 to June 2026. A windfall in government income from petroleum production is slowing down though far from over in New Mexico, the nation’s No. 2 oil-producing state.
Democratic Senate Majority Leader Peter Wirth of Santa Fe said the spending plan leaves room for a separate proposal to create a $1 billion endowment and use investment earnings to expand mental health and addiction treatment services. That comes amid a proliferation of homeless encampments in cities large and small and related concerns about public safety. New Mexico Gov. Michelle Lujan Grisham has set crime and homelessness as a central focus for of the 60-day legislative session that begins Tuesday.
Democratic state House Speaker Javier Martínez of Albuquerque said the Legislature's new spending pitch «is about making life more affordable for New Mexico families.”
“This budget is not just about making our communities safer, this budget is about building more access to health care, including behavioral health and drug addiction treatment,» he said.
Combined state and federal spending on health care in New Mexico — principally Medicaid — would increase by $3.3 billion to $15.5 billion, a 27% jump. New Mexico is
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