New Mexico

New Mexico

Budget Links 

FY2026 (proposed)
FY2025 (enacted)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)

Proposed Budget - Fiscal Year 2026

On December 12, New Mexico Governor Michelle Lujan Grisham submitted her fiscal year 2026 budget recommendation. The proposed budget calls for total fund spending of $33.1 billion, an increase of 13.5 percent from fiscal 2025, and recurring general fund spending of $10.9 billion, an increase of 7.0 percent from fiscal 2025. The budget also calls for $2.3 billion of nonrecurring general fund appropriations. The fiscal 2026 budget recommendation is based on a recurring general fund revenue estimate of $13.6 billion, a 2.6 percent increase from fiscal 2025’s projected level. The budget projects a total balance in general fund reserves of $3.3 billion, which represents 30.4 percent of recurring general fund appropriations.

Proposed Budget Highlights 

The governor’s budget prioritizes early childhood education, clean energy, infrastructure, affordable housing, and expanded healthcare access. The budget includes the following recommendations:

Infrastructure

• Requests funds for road maintenance and road construction 
• Directs funds to the General Services Department and Department of Workforce Solution for fleet conversion to clean vehicles
• Funds the Accelerate ConnectNM Program to ensure robust infrastructure and equitable access to high-speed internet across the state 
• Recommends funds to implement the 50-Year Water Action Plan 
• Establishes the Strategic Water Supply Initiative and expands geothermal projects across the state
  

Early Childhood

• Increases funding for the Early Childhood Education and Care Department including funding for Tribal community support programs, Family, Infant, Toddler provider rate increases, and the Medicaid state match for home visiting
• Provides funds for the childcare assistance program 
• Provides funds for additional prekindergarten slots
• Launches a pilot program for transforming childcare quality across the state 
  

Education

• Recommends funds to continue training elementary educators in the science of reading
• Expands structured literacy professional development into secondary schools and supports a second year of the summer reading intervention program 
• Directs funds for out-of-school learning, summer enrichment, and tutoring. 
• Funds the Universal Free Meals program
• Provides a three percent across-the-board raise for employees of K-12 public schools and higher education institutions
• Includes funds for the Opportunity Scholarship to cover tuition and fees 
• Directs funds for career technical education and other work-based learning programs 
  

Healthcare

• Provides increases for Medicare rates, Assisted Living Facilities rates, and Disabilities Waiver provider rates
• Recommends expanding Medicaid programs 
• Directs funds for behavioral health expansion initiatives 
• Continues the 988 program 
• Provides funds to the new Family Services Division at the Children, Youth, and Families Department
  

Housing

• Directs funds to build 1,000 new affordable homes for first-time buyers 
• Recommends funds to address homelessness and housing insecurity through new evidence-based programs including prevention, shelter, case management, and long-term housing assistance 
• Provides funds to the New Mexico Office of Housing to implement the state’s new strategic initiatives to bring down the cost of housing and create more housing opportunities
  

Public Safety

• Directs funds to the Organized Crime Commission
• Recommends creating a disaster loan recovery fund
• Provides funds for building repairs and security updates at courthouses across the state 
• Directs funds for Hepatitis C treatment and opioid treatment programs in prisons 
  

Economic Development

• Recommends GRO funding for the Economic Development Department’s Site Readiness Program 
• Directs funds to the Local Economic Development Act (LEDA) program to assist in expanding or relocating businesses that are Qualified Entities 
• Proposes funds for a statewide beautification campaign to make New Mexico a more attractive place to live, work, and invest
• Recommends funds for a national and international marketing advertising campaign to showcase New Mexico’s culture, history, and landscapes to a global audience
  

Proposed Budget Information
Fiscal Year 2026 Budget Proposal 

Fiscal Year 2026 Budget Brief 

Governor’s Press Release

Revenue Forecast – December 2024