SANTA FE, N.M. — Governor Michelle Lujan Grisham is marking the end of her final legislative session by celebrating a wide slate of bills approved by New Mexico lawmakers, including reforms in health care, child care, public safety, infrastructure and education.
The 2026 session produced a $33.4 billion state budget, with more than $11 billion from the general fund and a 2.6% increase in recurring spending. Lawmakers also approved roughly $3 billion in one‑time appropriations, while keeping state reserves at 27%.
Universal Child Care and Early Childhood
One of the session’s largest initiatives was the formal expansion of universal child care, building on the state’s nationwide first‑in‑the‑country move to make child care a permanent right. Funding includes $160 million to grow access, $30 million over three years for early‑childhood workforce development, and $20 million for child care facility expansion.
Senate Bills 241 and 96 standardize statewide access, protect families from co‑pays under most circumstances, and reduce zoning barriers for new child care providers.
Health Care and Medical Malpractice Reform
Addressing a statewide shortage of more than 5,000 health‑care providers, lawmakers passed several bills targeting recruitment and affordability.
House Bill 99 updates New Mexico’s medical malpractice laws with tiered caps and higher evidentiary standards for punitive damages. Additional measures — including Senate Bill 1 and House Bill 50 — authorize interstate licensing compacts for doctors and social workers, making it easier for out‑of‑state providers to practice in New Mexico.
The budget dedicates more than $17 billion to health programs, including support for hospitals, Medicaid, and initiatives funded through the Health Care Affordability Fund.
Infrastructure and Transportation
New Mexico is investing heavily in roads, housing, and utilities, with more than $4.1 billion going toward infrastructure statewide. A major piece of that is Senate Bill 2, a $1.5 billion transportation bonding package aimed at addressing long‑delayed road and bridge upgrades and maximizing federal infrastructure funding opportunities.
The budget also includes substantial funding for affordable housing, water projects, and energy infrastructure.
Public Safety Legislation
Lawmakers approved several bills geared toward strengthening the state’s public safety system. Senate Bill 3 updates standards for mental‑health crisis intervention, clarifying when law enforcement and medical professionals can intervene to prevent harm. Other bills remove the statute of limitations for child sex crimes, fix inconsistencies in sentencing for attacks on officers, and expand survivor benefits for families of first responders.
House Bill 255 establishes a statewide recruitment and retention program covering law enforcement, fire, EMS, detention and public attorneys.
Education and Student Support
Education saw major investments, including $4.7 billion in recurring funding to support literacy, math, and career‑readiness programs.
Senate Bill 37 formalizes structured literacy instruction statewide, while Senate Bill 29 expands math requirements for teacher preparation and mandates early math screening. Senate Bill 64 officially establishes the Office of Special Education within the Public Education Department to streamline services for students with disabilities.
Economic Development
The legislature also approved more than $500 million in economic development funding, including investments in emerging technology sectors and a large‑scale revitalization effort for the New Mexico State Fairgrounds.
