Enacted Budget – Fiscal Year 2026
On April 11, New Mexico Governor Michelle Lujan Grisham signed the state budget for fiscal 2026. The budget totals $10.84 billion in recurring general fund spending, a 5.9 percent increase over fiscal 2025 levels. The legislature also passed $2.8 billion in nonrecurring spending and fund transfers including funding for supplemental appropriations, information technology, and transportation projects. The fund transfers include transfers to the 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 $13.63 billion in fiscal 2026, an increase of 2.7 percent from fiscal 2025. The state’s general fund reserves are estimated at $3.5 billion, which is 32.3 percent of recurring expenditures and includes $2.3 billion in the Tax Stabilization Reserve Fund, which is the state’s rainy-day fund.
The governor noted that the budget makes significant investments in New Mexico’s future, from education and healthcare to critical infrastructure. The budget provides funding to improve access to healthcare, raise pay, and make life better for families across New Mexico. The budget provides a 4.0 percent compensation increase for all state, higher education, and public school employees, along with targeted increases for state police and the lowest paid court employees. Additionally, the budget increases funding for health and human services to help improve healthcare access and health outcomes. The budget also provides increased funding for education to implement funding formula changes, raise teacher salaries, and increase the minimum salaries for teachers.