House Democrats Respond to Strong State Revenue Projections Amid Federal Economic Uncertainty
Las Cruces, NM - Today, the Legislative Finance Committee (LFC) heard preliminary revenue projections for Fiscal Years (FY) 2026-2030. Despite recent federal funding cuts under H.R.1 which are expected to reduce state revenues by up to $305 million in FY 2027, New Mexico’s overall revenue outlook remains strong.
The state’s Consensus Revenue Estimating Group (CREG), which includes economists from four state agencies, projects $485 million in new money for the state in FY 2027, while maintaining over 30 percent in reserves.
New Mexico House Democrats issued the following statements in response:
“As economic uncertainty grows nationwide, New Mexico remains in a strong financial position with continued revenue growth predicted for the next several years,” said Representative Nathan Small (D-Las Cruces), who serves as Chair of the LFC and the House Appropriations and Finance Committee (HAFC). “We are focused on protecting your access to healthcare and other critical services in the face of federal cuts and continuing to invest wisely in the needs of our communities today, while saving prudently for generations to come.”
“Today’s strong projections across the board demonstrate that the legislature’s work to diversify and insulate our economy is paying off,” said Representative Meredith Dixon (D-Albuquerque), Vice Chair of HAFC. “With robust reserves and hundreds of millions in new money, we can continue to thoughtfully address the biggest challenges our state faces today, from federal funding cuts to child well-being and public safety, as we grow our economy going forward.”
“Despite the constant stream of chaos coming out of Washington, D.C., New Mexico’s economic outlook remains strong thanks to years of hard work and smart budgeting,” said House Speaker Javier Martínez (D-Albuquerque). “We are not just ready to weather the storms ahead, we are ready to deliver on our promises to make life more affordable for New Mexicans now and invest in big ideas and bold solutions for the future.”
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