New Mexico

New Mexico

Budget Links 

FY2025 (enacted)
FY2025 (proposal)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)

Enacted Budget – Fiscal Year 2025

In March, New Mexico Governor Michelle Lujan Grisham signed the state budget for fiscal 2025. The budget totals $10.2 billion in recurring general fund spending, a 6.8 percent increase over fiscal 2024 levels. The legislature also passed $1.25 billion in nonrecurring spending including funding for public infrastructure, road projects, and rural hospital expansions. Additionally, the budget includes $838 million in transfers to the newly created government results and opportunity expendable trust and its program fund for multiyear appropriations to pilot a range of initiatives. The enacted budget is based on recurring general fund revenues of $12.8 billion in fiscal 2025, reflecting annual growth of 0.6 percent. The state’s general fund reserves are estimated at $3.3 billion, which is 32.2 percent of recurring expenditures and includes $2.3 billion in the Tax Stabilization Reserve Fund which is the state’s rainy-day fund.

The enacted budget prioritizes funding to improve literacy, help keep New Mexicans safe, expand affordable housing, and raise teacher pay. It includes $89 million to provide a three percent salary increase for public employees and school personnel and targeted increases for state police and the environment department; a $230 million increase for health and human service agencies including $11.5 million to increase Medicaid rates for rural hospitals; and a $270 million increase for education to expand prekindergarten services, fully fund universal free school meals, and increase investments in literacy initiatives.

Enacted Budget Information
Fiscal Year 2025 Enacted Budget 

Post-Session Review 

Proposed Budget - Fiscal Year 2025

On January 4, New Mexico Governor Michelle Lujan Grisham submitted her fiscal year 2025 budget recommendation. The proposed budget calls for total fund spending of $29.3 billion, an increase of 8.4 percent from fiscal 2024, and recurring general fund spending of $10.5 billion, an increase of 9.9 percent from fiscal 2024. The budget also calls for $2.1 billion of nonrecurring general fund appropriations. The fiscal 2025 budget recommendation is based on a recurring general fund revenue estimate of $13.1 billion, a 2.3 percent increase from fiscal 2024’s projected level. The budget projects a total balance in general fund reserves of $3.6 billion, which represents 34.2 percent of recurring general fund appropriations. Total reserves include $3.4 billion in the state’s rainy day fund.

Proposed Budget Highlights 

The governor’s budget focuses on the areas of natural resources, housing, education, healthcare, public safety, economic development, and infrastructure. The budget includes the following recommendations:

Natural Resources

• Appropriates $500 million from severance tax bonds for the Strategic Water Supply.
• Directs a transfer of $250 million to the Land of Enchantment Conservation Fund.
• Supplies $20 million to support low-interest loans to communities to implement projects that reduce carbon emissions. 

Housing

• Invests $250 million in the New Mexico Housing Trust Fund.
• Invests $250 million in the New Mexico Finance Authority Opportunity Enterprise Revolving Fund to increase funding for affordable housing.
• Allocates $40 million to support homelessness initiatives and expand homelessness services statewide. 

Education

• Directs $33 million to expand early pre-kindergarten to an additional 1,380 children across the state. 
• Provides $58.1 million for structured literacy, including $30 million for a new Structured Literacy Institute.
• Proposes $101.2 million to increase the minimum number of school days to 180. 
• Invests $43.5 million dollars to provide healthy, universal school meals. 
• Directs $96 million to provide a 3.0 percent increase for all educators.
• Recommends an increase of $11.9 million to the Higher Education Department to sustain funding for the Opportunity Scholarship. 

Healthcare

• Provides $2.2 billion in recurring general funds for the Health Care Authority department including: 
  • $100 million for the Rural Healthcare Delivery Fund.
  • $87.9 million for Medicaid provider rate increases to 150 percent for maternal/child health, primary care, and behavioral health.
  • $20.8 million to expand the Supplemental Nutrition Assistance Program (SNAP) and provide a household benefit increase for elderly and disabled individuals. 
  • $11.5 million to increase the eligibility limit for Temporary Assistance for Needy Families (TANF) benefits. 
• Invests $24.7 million to create a new Family Services division at the Children, Youth and Families Department. 

Public Safety

• Provides $35 million for corrections and law enforcement recruitment statewide.
• Directs $11.5 million to provide compensation increases to New Mexico State Police. 
• Proposes an increase of $7 million to support staffing at New Mexico District Attorney Offices. 
• Allocates $35 million for the Firefighter and EMT Recruitment Fund. 

Economic Development/Infrastructure

• Invests $100 million to launch the New Mexico Match fund to leverage federal funding for infrastructure investments such as roads, bridges, water, energy, and broadband. 
• Recommends $25 million for the Local Economic Development Act Program (LEDA) and $9.7 million for the Job Training Incentive Program. 
• Provides $5 million in total funding for the New Mexico Media Academy.
• Provides a 3.0 percent pay increase for state employees.

Proposed Budget Information
Fiscal Year 2025 Budget Proposal 

Fiscal Year 2025 Budget Brief 

Governor’s Press Release

Revenue Forecast – December 2023