Governor Michelle Lujan Grisham appeared on CBS’s Face the Nation Sunday to discuss the impact of recent Medicaid cuts and the federal response aimed at supporting rural hospitals. She expressed concern that a newly announced $50 billion fund won’t be enough to offset the losses caused by the cuts.
The fund was introduced following the passage of President Trump’s “Big Beautiful Bill,” which reduced Medicaid spending to increase funding for border security and defense. Some Republican senators pushed for the fund to help rural communities cope with the changes.
During the interview, Lujan Grisham said the plan lacks clarity and adds unnecessary bureaucracy. “There is no real way to implement this,” she said, citing increased paperwork for providers and government agencies. She also criticized the burden placed on primary care physicians, saying it detracts from patient care.
New Mexico’s Medicaid director confirmed that nearly 34% of the state’s population relies on Medicaid and warned that six to eight rural hospitals could close within the first year under the new policy.
Applications for the rural hospital fund are expected to open in early September.
