SANTA FE, N.M. – Governor Michelle Lujan Grisham has unveiled her fiscal year 2027 executive budget recommendation, proposing $11.3 billion in recurring spending to safeguard New Mexico against potential federal funding cuts and expand universal child care, while maintaining strong financial reserves.
The plan represents a 4.6% increase over current spending and keeps reserves at 30%, totaling $3.4 billion. The governor called the proposal the culmination of seven years of “disciplined investment” that has strengthened the state’s financial position.
Key Highlights
- Universal Child Care: $606.4 million to maintain no-cost child care for all families, plus $7.5 million to expand early pre-K and $4 million for universal home visiting.
- K-12 Education: $42.2 million for universal school meals, $38.5 million for career technical education, $30 million for reading intervention, and $14 million for early literacy.
- Higher Education: $168 million for the Opportunity Scholarship, bringing total higher education funding to $1.48 billion.
- Health Care: $92.9 million to maintain Medicaid coverage amid federal cuts, $81.1 million for affordable health insurance, and $37 million to offset reduced SNAP reimbursements.
- Infrastructure & Water: $232 million for water security, $100 million for road projects, and $60 million for the New Mexico Match Fund.
- Public Safety: $13.5 million for law enforcement and fire pay raises, $3 million for felony warrant enforcement, and $2.5 million for Organized Crime Commission operations.
- Housing: $65 million for affordable housing and $45 million for homelessness programs.
The governor emphasized that the budget reflects shared priorities and prepares the state for federal uncertainty. Lawmakers will review the proposal during the 30-day legislative session starting in January.
For full details, view the documents:
- FY27 Executive Budget Recommendation
- Budget in Brief
