House Passes Responsible Budget with Strong Bipartisan Support
Budget focuses on delivering immediate impact for New Mexicans now, while seeding responsible growth and long-term savings
Santa Fe, N.M. – Today, the New Mexico House of Representatives passed House Bill 2: the General Appropriations Act, with broad bipartisan support, by a vote of 50-18. The House’s proposed state budget for fiscal year 2026 totals $10.8 billion, up 5.8% from last year, while maintaining responsible 31.2% reserves.
Key areas of focus in this year’s budget include improving public safety, addressing rising costs of living for New Mexicans, supporting cradle-to-career education, creating jobs, and protecting the environment.
“Through an open, transparent, and collaborative process, we built a budget that will have immediate impacts for New Mexicans and set us up for continued sustainable growth in the long run,” said House Appropriations and Finance Committee (HAFC) Chair Rep. Nathan Small (D-Las Cruces), sponsor of HB 2. “The broad bipartisan support for this budget reflects the strength of our process and our approach to meeting New Mexicans’ needs today while continuing to save for our future.”
HB 2 prioritizes significant raises for teachers and law enforcement, investments to expand access to housing and healthcare – including behavioral healthcare, new strategies for economic development, safeguards for New Mexico’s water supply, and pilot programs to help address priorities like improving child well-being, while also ensuring accountability.
“Our budget takes into account the diverse needs of communities across our state, from forest and watershed restoration for our neighbors impacted by fires and floods, to historic investments in housing and behavioral healthcare that will help us tackle the root causes of crime, particularly in cities like Albuquerque and Las Cruces, ” said HAFC Vice Chair Rep. Meredith Dixon (D-Albuquerque), co-sponsor of HB 2. “We are focused on making investments that deliver results for the people of New Mexico now, while maintaining robust reserves and investing smartly so that today’s prosperity can benefit New Mexicans for many years to come.”
The budget now heads to the Senate.
A breakout of key investments in HB 2 by topic areas is below.
Education and Childcare
HB 2 continues investments in cradle-to-career education so that all of New Mexico’s children have access to the opportunities they deserve:
Allocates $4.7 billion in recurring funding for public education, a 6% increase over last year
Provides a 4% average salary increase for public school personnel
Raises minimum teacher salaries by $5,000 per license level
Increases funding for employee benefits so educators and school staff can keep more of what they earn
Increases funding to the Early Childhood Education and Care Department by $170 million, or 21.6%, to greatly expand pre-K, childcare assistance, home visiting, and tribal language supports
Provides funding to improve school facilities
Continues funding for the teacher loan repayment program, to retain and attract more educators to New Mexico
Healthcare
HB 2 expands access to affordable healthcare, including mental and behavioral healthcare, targeting the state’s most vulnerable communities, as well as investing in New Mexico’s healthcare workforce, and improving food security:
Delivers $15 billion in state and federal funding for Medicaid and other critical healthcare services
Appropriates $22.1 million to a new Medicaid waiver initiative for those in the criminal justice system, as part of an increased focus on the intersection of behavioral health and criminal justice
Dedicates substantial funding to mental and behavioral healthcare, including $140 million to expand infrastructure and access with regional coordination to get funds to areas most in need, and key funding for crisis response systems
Invests in growing the healthcare workforce by increasing rates and building capacity
Improves food security for New Mexicans with $10 million in annual funding for food banks
Public Safety
This budget places considerable emphasis on collaboration between law enforcement and behavioral healthcare providers, including crisis response. HB 2 also continues the legislature’s strong support of law enforcement:
Dedicates $10 million to building the capacity of local law enforcement agencies
Allocates $4 million to law enforcement recruitment and retention
Provides significant funding for state police raises, vehicles, equipment, and repairs
Housing
HB 2 prioritizes addressing New Mexico’s housing crisis, with substantial funding to the Department of Finance and Administration for transitional services:
Directs $110 million to targeted housing development, including transitional housing, with a focus on Bernalillo and Doña Ana counties
Makes $45.9 million available to housing providers to focus on specialized housing solutions and a strategic response to homelessness
Water and Natural Resources
HB 2 makes significant investments to protect New Mexico’s water supply and other natural resources with significant funding for state agencies, as well as for research and improvement programs:
Provides $7 million to support New Mexico’s river stewards program and $5 million to the Office of the State Engineer to implement the Water Security Planning Act
Dedicates $1 million for clean water testing and $2 million to the New Mexico Environment Department to address well water contamination
Supports water project development by beneficiaries of the Indian Water Rights Settlement, with a $25 million appropriation
Funds research to strategically plan the state’s water future, with $19 million to NM Tech for groundwater monitoring and improvements, and $4 million for water research at NMSU
Allocates $50 million to clean up abandoned uranium mines and other contaminated sites
Directs $1.24 million to hot shot fire crews, watershed management, and forest restoration
Economic Development
This year’s budget continues to support the growth and diversification of New Mexico’s economy and fosters a strong, resilient economy that spans the state’s urban and rural areas:
Redistributes funding for the Economic Development Department to increase focus on economic diversification initiatives
Invests $24 million in site readiness, which prepares prime, construction-ready locations for companies to quickly and easily set up in New Mexico
Provides $25 million in funding for research and development initiatives to help attract new and growing industries to the state
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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