Governor signs special session emergency relief package – Four bills provide $162M to counter federal cuts

SANTA FE — New Mexico Governor Michelle Lujan Grisham signed emergency legislation Friday to shield New Mexicans from federal cuts to food assistance and health care programs, deploying $162 million in state funds immediately to maintain services across the state.

“When federal support falls short, New Mexico steps up — that’s our commitment to families who depend on these services,” said Lujan Grisham, who called lawmakers into a special legislative session this week. “This funding protects the basics: food security, affordable health care, and access to care.”

The bills signed by the governor addressing urgent needs across health care, food security, and judicial capacity include:

House Bill 1 provides $162 million in emergency funding in response to recent federal cuts to food assistance programs and other urgent state needs.

The Health Care Authority receives the largest share at $66 million total. This includes $16.6 million to maintain SNAP food benefits; $8 million for food banks and pantries; $2 million for school-based food programs; $1.5 million to help people meet work requirements for benefits; $1.2 million to retain SNAP program staff at UNM and NMSU; $6.6 million for additional staffing at HCA; $10 million for IT system upgrades; $3 million for nonprofit health clinics; and $17 million to reduce health insurance costs on the state exchange.

House Bill 1 also transfers $30 million into the state’s emergency contingency fund and $50 million into the rural healthcare fund, provides $17 million to help New Mexicans afford health insurance through the state exchange, provides $8 million to close budget shortfalls at the Regulation and Licensing Department, and allocates $6 million to protect public broadcasting in New Mexico. To offset these costs, the state is recovering $120 million in unspent money from a previous Health Care Authority budget, keeping the state’s financial reserves healthy at 32% of annual spending.

House Bill 2 bolsters New Mexico’s ability to help residents maintain affordable health insurance coverage amid federal policy changes. The legislation removes income caps for state-subsidized health insurance, allowing New Mexicans above 400 percent of the federal poverty level to receive assistance through the state’s Health Care Affordability Fund if they meet other eligibility requirements. This change addresses the pending expiration of enhanced federal premium tax credits at the end of 2025, which could leave approximately 6,300 New Mexicans facing significantly higher insurance costs. The law also gives state officials broader authority to protect residents’ health coverage if future federal actions reduce access to Medicaid or marketplace insurance. The emergency legislation is estimated to cost $17.3 million in the current fiscal year. The funding is included in House Bill 1.

Senate Bill 1 transfers $50 million from the general fund to the Rural Health Care Delivery Fund to stabilize existing health care services at risk of reduction or closure in rural and underserved areas across New Mexico. The legislation broadens eligibility beyond counties with populations under 100,000 to include providers in federally designated high-needs health professional shortage areas and tribally operated facilities. It allows grants to stabilize existing essential services and supports start-up costs for new services. House Bill 1 provides $50 million to fund the expanded program.

Senate Bill 2 allows metropolitan court judges to preside over criminal competency proceedings. This reverses a change made earlier in 2025 that required all such cases to go to district court. The bill takes effect immediately as an emergency measure. The bill will increase access to behavioral health services by relieving administrative pressure on district courts.

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