Lawmakers Kick Off Special Session to Protect New Mexicans from Federal Funding Cuts
Santa Fe, N.M. – Today, New Mexico state lawmakers convened for a special session to protect access to healthcare and other critical services for New Mexicans that are under threat because of President Trump’s massive federal budget cuts and recent policy changes.
This summer, President Trump and Republicans in Washington, D.C. passed a federal spending bill (H.R. 1) that guts healthcare and food assistance for working families to fund tax breaks for the wealthiest Americans. Throughout the interim, state lawmakers have been closely reviewing the impacts these cuts will have on New Mexico and developing plans to protect access to the services families need.
In the special session, legislators are focused on responding to the cuts that will hit New Mexicans the hardest and the fastest by increasing state investments in food assistance programs, shoring up support for rural healthcare providers, and expanding access to premium assistance in the health insurance marketplace.
“While President Trump causes economic chaos and New Mexicans feel the pinch, your state lawmakers are in the Roundhouse protecting the services our families cannot live without,” said New Mexico House Speaker Javier Martínez (D-Albuquerque). “Our communities are counting on us to protect their access to healthcare and help them keep food on their tables, and we’re going to deliver.”
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. Several years of record revenues have allowed lawmakers to invest in cradle-to-career education, public safety, healthcare, housing, economic development, and environmental protections, while maintaining robust reserves.
By the Numbers*:
450,000 New Mexicans in need who could see reductions to their food benefits
55,000 New Mexicans who could lose their food benefits all together
88,000 New Mexicans who could lose Medicaid coverage
27,000 New Mexicans who could lose healthcare through the marketplace
8 Rural hospitals at risk of closure in less than 18 months
75% Estimated average out-of-pocket cost increase for Marketplace health insurance (if the federal government allows tax credits to expire)
“New Mexico is ready for this moment,” said Senate Majority Leader Peter Wirth (D-Santa Fe). “Years of smart budgeting and thoughtful policymaking leave us in a strong financial position to fight back against federal funding cuts and protect the services that New Mexicans need, while continuing to invest in our future.”
Legislators will also update the state’s vaccination policies to align with recommendations from the New Mexico Department of Health and the American Academy of Pediatrics, so that New Mexicans can continue to follow the vaccine guidance of medical experts and access the medical care their families need.
“We are not going to let New Mexico’s children and families suffer because of the Republican-led healthcare cuts coming out of Washington, D.C.,” said House Majority Leader Reena Szczepanski (D-Santa Fe). “Costs are rising in this country and New Mexico is going to do our part to protect access to healthcare, food benefits, and life-saving vaccines fundamental to keeping our families healthy and thriving.”
Lawmakers will invest in public broadcasting, after Republicans in D.C. stripped away a critical funding stream for local stations.
“Without action from the state legislature, New Mexico’s rural communities would likely be the hardest hit by federal cuts,” said Senate President Pro Tem Mimi Stewart (D-Albuquerque). “That’s why we’re investing in rural healthcare, maintaining critical services for folks in all corners of our state, and supporting the public broadcasting these communities rely upon for news and critical information during emergencies.”
Special Session Legislative Priorities
Increase Food Assistance
Nearly $30 million for a comprehensive food assistance package, including:
$8 million in direct support for foodbanks statewide
Funding to maintain increased SNAP benefits for seniors, which were slated to end this month in the federal budget,
$2 million to restock food pantries at universities and public schools, support SNAP employees at NMSU and UNM that run educational nutrition programs, and maintain SNAP for lawful permanent residents,
Funding for the Health Care Authority to hire the staff necessary to help New Mexicans navigate the complicated new rules coming from the federal government’s unfunded mandates.
Lower Healthcare Costs
$17 million for increased subsidies for healthcare premiums through BeWellNM, which otherwise could have seen up to a 600% increase starting January 1, 2026.
$10 million for IT expenses for other healthcare authorities to help provide outreach and assistance to folks who may be at risk of losing coverage under the new guidelines.
Stabilize Rural Providers
$50 million to the Rural Health Care Delivery Fund for rural providers and facilities vulnerable to shifts in Medicaid and federal funding.
Legislation to allow the fund to be used for the growing needs of rural providers, including for stabilization grants so facilities don’t close.
Protect Access to Vaccines
Legislation enables the state to follow the guidance of medical experts like the American Academy of Pediatrics and the state department of health in establishing vaccine rules and standards.
Support Public Media
An investment totaling $6 million to ensure that FCC broadcasters losing funding because of the Federal Rescissions Act will be able to maintain operations.
Includes $400,000 dedicated to supporting radio stations in New Mexico’s tribes, nations, and pueblos.
Other Legislation:
Compact Study and Rule Promulgation
Seed money to the Regulation and Licensing Department to research and promulgate rules regarding medical compacts, so legislators will have more information on the best way to join compact agreements, and the Department is ready to implement those agreements as soon as they are passed in the regular 30-day session.
Disaster Funding
$30 million to the Appropriation Contingency Fund to ensure New Mexico can respond quickly to disasters like floods and wildfires, given slower and smaller FEMA reimbursements under the current administration
Competency Fix
Amending existing competency law to allow metropolitan courts to determine competency.
Continued Investment in Behavioral Health
$1 million to the Administrative Office of the Courts to continue the Assisted Outpatient Treatment (AOT) program, a critical behavioral health service that dramatically reduces hospitalization, criminalization, and other adverse outcomes for individuals in crisis.
Unspent Medicaid Funding Transfer
The bill transfers $120 million in unspent Health Care Authority funds, originally set aside for potential Medicaid overpayment repayments that the federal government has not clearly pursued, so that those dollars, rather than sitting in a fund, can be put to work now to provide immediate relief for New Mexicans.
*By the Numbers Sources:
Members of the public are welcome to attend floor sessions and committee meetings at the New Mexico Roundhouse, and can tune in virtually through the New Mexico Legislature’s Webcasts tab. Public comment can also be provided in-person, and via phone or Zoom as directed on the daily schedule.
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