New Mexico Leads the Way in Protecting Families from Federal Cuts

Santa Fe, N.M. – This evening, the New Mexico House of Representatives adjourned Sine Die  after taking important steps in a special session to protect New Mexicans’ access to critical services, including healthcare access and food benefits, that were endangered by recent federal budget cuts and 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 from both chambers and both parties closely reviewed the impacts these cuts will have on New Mexico. 

In this two-day special session, legislators focused on addressing the most urgent threats New Mexicans are facing because of recent federal actions, including skyrocketing healthcare premiums, seniors and families losing healthcare benefits, and rural healthcare providers struggling to keep their doors open.

“This special session was about protecting New Mexico families from real and immediate harms that endanger their ability to access healthcare and put food on their tables,” said House Speaker Javier Martínez  (D-Albuquerque). “Here in New Mexico, we step up to take care of one another, and I’m proud to say that’s what we did for families across our state in this special session.” 

Lawmakers sent the Governor a $125 million budget bill which makes critical investments to safeguard healthcare access, food assistance, and New Mexico jobs, while also supporting public broadcasting stations that recently lost federal funding. 

The legislature also passed House Bill 2, which authorizes the state’s Health Care Affordability Fund to provide subsidies for health insurance purchased through the Affordable Care Act marketplace. These will fill the gap left by federal tax credits set to expire at the end of this year and protect New Mexicans from the anticipated increases of over 75% in out-of-pocket health insurance costs. 

“Because Republicans in Washington chose inaction, healthcare premiums on the Exchange are slated to skyrocket, soaring by thousands of dollars for many,” said Majority Floor Leader Reena Szczepanski (D-Santa Fe). “Our urgent work in this special session holds the worst of those costs back and helps New Mexico’s families afford the healthcare coverage they deserve.”

Lawmakers also passed Senate Bill 3 to protect access to vaccines for New Mexico families. The legislation enables the state to ensure science-based vaccines are both readily available and affordable to New Mexicans who want to take advantage of their benefits. 

“As budget cuts and dysfunction at the federal level make life harder and more expensive for families across our country, New Mexico is taking action and setting an example for the nation,” said Majority Whip Dayan Hochman-Vigil (D-Albuquerque). “We are making sure families in our state can get the care  they need, including vaccinations, if they so choose.” 

Senate Bill 1, which passed both chambers with broad bipartisan support, boosts support for New Mexico’s rural healthcare providers, who will be hit hard by impending federal funding cuts to Medicaid. The legislation expands the scope of the state’s Rural Health Care Delivery Fund, so that in addition to providing support to new or expanding rural healthcare facilities, the fund can also provide stabilization grants to existing facilities at risk of closure because of these cuts. 

“Federal cuts are hitting small communities like mine especially hard, pushing our hospitals and clinics to the brink and threatening many New Mexicans’ only source for nearby emergency care,” said Majority Chair Raymundo Lara (D-Chamberino). “We are not waiting for this to become a crisis, we are shoring up our rural healthcare providers so that they can continue to provide the critical services our families rely on now.”

Breakdown of Budget Investments 

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 to protect New Mexicans from skyrocketing price increases that would otherwise begin 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, including stabilization grants to keep these facilities’ doors open. 

Protect Access to Vaccines

• The legislation ensures science-based vaccines remain readily available and affordable to New Mexicans who want to take advantage of their benefits. 

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.

• $400,000 dedicated to supporting radio stations in New Mexico’s tribes, nations, and pueblos. 

In addition to filling federal voids, the Special Session budget also invests in key areas of need in New Mexico, including: 

• Addressing New Mexico’s healthcare shortage: Provides seed money to the Regulation and Licensing Department to help set the framework that will enable New Mexico to successfully join interstate medical compacts, so agreements can be implemented as soon as they are passed in the upcoming 30-day session. 

• Funding disaster response: Allocates $30 million to the Appropriation Contingency Fund to ensure New Mexico can respond quickly to disasters like floods and wildfires, given the slower and smaller FEMA reimbursements being received under the current administration. 

• Continuing to invest in behavioral health: Appropriates $1 million to the Administrative Office of the Courts to continue the Assisted Outpatient Treatment program, a critical behavioral health service that dramatically reduces hospitalization, criminalization, and other adverse outcomes for individuals in crisis.

These investments still leave New Mexico with robust reserves of 32.2%. 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.

Lawmakers also passed legislation by a vote of 65-3 to make a technical amendment to last session’s House Bill 8 that allows metropolitan courts to determine competency for individuals in the state’s criminal justice system. 

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