New Mexico’s 2026 session: Fix what’s broken, grow what works

If you want a strong economy, start with health care and workforce. This legislative session, New Mexico took meaningful steps in the right direction, especially on medical malpractice reform and interstate medical compacts. That is not politics. That is common sense.

Let’s start with medical malpractice.

For years, New Mexico has struggled with instability in medical liability. When malpractice insurance becomes unpredictable and expensive, doctors leave. When doctors leave, families lose access to care. And when access to care shrinks, businesses think twice about expanding.

HB 99 tackled a key piece of that problem by clarifying punitive damage standards and reinforcing guardrails around the patient compensation structure. Predictability lowers risk. Lower risk attracts providers. More providers mean better access for families and a stronger value proposition when companies consider relocating to New Mexico. We need more options for New Mexicans to see a doctor in a timely manner, not wait six months or more, especially for patients relying on BEWELLNM coverage.

The Legislature also expanded participation in interstate licensure compacts, including the  Interstate Medical Licensure Compact in SB 1 and the Social Work Licensure Compact in HB 50. These measures cut red tape and allow qualified professionals to practice across state lines more efficiently.

That is how we compete with neighboring states, by moving quickly and eliminating unnecessary barriers. If New Mexico wants to recruit physicians, behavioral health providers, and specialists, we cannot build bureaucratic walls. Compacts expand the talent pool. That is good for patients, employers, and communities. Several additional compacts passed one chamber but stalled in Senate Judiciary as time ran out, an issue that will likely return in a special session.

Add in HB 66, strengthening health professional loan repayment incentives, and the theme is clear. Stabilize the system, recruit talent, and build long term workforce strength.

The session also addressed workforce participation through SB 241, the Child Care Assistance Program Act. Child care costs have become one of the biggest barriers to employment. When working parents face $1,500 to $2,000 per month in child care expenses, participation drops. Reducing that burden can increase labor force participation, reduce absenteeism, and circulate more disposable income into local businesses. The long-term challenge will be sustainability, particularly when funding relies heavily on oil and gas revenues that face continued political pressure.

Other pro-growth measures also deserve mention.

HB 7 secured stable recurring funding for apprenticeship and workforce training programs, strengthening pipelines into skilled trades and high demand careers.

SB 58 extended metropolitan redevelopment property tax exemptions, giving communities a longer runway to attract private investment and revitalize underused properties.

HB 63 and HB 64 invested in water infrastructure and revolving funds, foundational elements for community growth and business expansion.

HJR 5, the constitutional amendment on legislative compensation, while neutral from a direct business standpoint, reflects an ongoing conversation about governance and accountability.

Now let’s talk about what did not work and what will likely be back.

SB 17 would impose heavy regulatory burdens on lawful firearm dealers, including expensive security upgrades and compliance mandates. Many small businesses would face more than $35,000 in upfront costs, with ongoing annual expenses layered on top. That approach risks penalizing compliant businesses rather than targeting criminals.

SB 18, the so-called Clear Horizons bill, would have mandated aggressive emissions reductions of 45 percent by 2030 and net zero by 2050 while expanding regulatory authority and pressuring electrification without demonstrated grid readiness or economic safeguards. Oil and gas revenues fund schools, infrastructure and early childhood programs. You do not destabilize your primary revenue source without a replacement plan.

SB 18 died this year. SB 17 advanced. Both will likely return in the 60-day session. Medical malpractice reform may also face renewed scrutiny. The debate is not over.

When lawmakers focus on competitiveness by stabilizing malpractice law, expanding licensure compacts, strengthening workforce pipelines, and supporting redevelopment and infrastructure, New Mexico wins.

When policy drifts toward heavy regulation without economic guardrails, businesses pay the price. New Mexico does not need more uncertainty. It needs execution, clarity and competitiveness.

Fix what is broken. Grow what works. Focus on jobs, development, education and stopping crime.