Legislature approves much of governor’s agenda

The New Mexico Legislature adjourned its 30-day session on Thursday having passed much of Gov. Michelle Lujan Grisham’s legislative agenda. However, the governor is seriously considering a special session to press for additional public safety protections.

Lawmakers approved a $10.2 billion budget for FY 2025, a 6.8% increase over current-year state spending. The Legislature passed a total of 72 bills, 48 of which were proposed or supported by the governor and state agencies. Bills backed by the governor and approved by lawmakers make significant investments in New Mexico roads, parks, literacy programs, health care and more.

“This was an incredibly successful session on many fronts, with significant investments in housing, health care, education and the environment,” Lujan Grisham said. “But more can, should and must be done to protect New Mexicans from the scourge of violent crime. I’ll be closely evaluating the public safety legislation that was approved during the past 30 days before deciding whether to call lawmakers back to Santa Fe for a special session.”

Among the governor’s key priorities to pass are:

• SB 271: Repeat Felony Offender No-Bond Hold
• HB 129: 7-Day Firearm Waiting Period
• SB 5: Firearms Near Polling Places
• HB 236: Public Safety Return to Work
• SB 96: Increase Second-Degree and Attempted Murder Penalties
• SB 128: State Fire Retirement
• SB 175: Law Enforcement and Corrections Recruitment ($25M)
• HB 193: Law Enforcement Retention
• HB 41: Clean Fuels
• HB 177: New Mexico Match Fund ($75 million)
• SB 17: Health Care Delivery and Access Act (Hospital Assessment/Tax)

Budget highlights include:

• $200 million for low-income and workforce housing and initiatives to reduce homelessness across New Mexico.
• $86 million for literacy projects, including the establishment of a new Literacy Institute to help more New Mexicans become proficient in reading and writing.
• $97 million for Medicaid reimbursement rate increases for New Mexico doctor and hospitals, including 150% increases to meet the state’s maternal, children’s, primary and behavioral health needs.
• More than $1 billion for infrastructure, water and natural resources projects, including more than $500 million to improve and build New Mexico roads.
• $90 million for state and city parks and anti-litter and beautification projects around the state.
• $53 million for capital projects for nations, tribes, and pueblos, including $23 million from the governor’s capital fund.

In addition, the tax package (HB 252), includes numerous key provisions the benefit New Mexicans. In total, the legislation cuts taxes by $272 million.

HB 252 includes:

• Clean Car Tax Credits
  – $3,000 for new EVs
  – $2,500 for used EVs or new plug-in hybrids
  – $2,000 for used plug-in hybrids
• Advanced manufacturing tax credit
  – Up to $25 million credit for the purchase of advanced manufacturing equipment to companies that qualify for the federal IRA.