Governor celebrates landmark final legislative session – Lawmakers approve medical malpractice, universal child care, public safety, road improvement and education bills 

SANTA FE — Governor Michelle Lujan Grisham today celebrated passage of landmark bills approved by the New Mexico Legislature during her final session, including medical malpractice reform, universal child care and new public safety, health care and education initiatives.

The 2026 legislative session delivered a responsible, forward-looking budget that reflects New Mexico’s fiscal strength and the governor’s commitment to investing in New Mexicans. The FY 2027 budget totals $33.4 billion — including more than $11 billion from the general fund — and increases recurring general fund spending by $277 million, a 2.6% boost, while dedicating approximately $3 billion in nonrecurring appropriations. The budget maintains reserves at a healthy 27%.

“This was a remarkably productive 30-day session — my last as governor – with our state lawmakers demonstrating that New Mexico is serious about building a state where families can thrive, health care is accessible and every child has a chance to succeed,” said Governor Lujan Grisham. “We intended to deliver universal child care, medical malpractice reform, literacy education and more — and we did. Thank you to every lawmaker that partnered with us to help make New Mexico the best state in America to build a business and raise a family.”

Universal child care

New Mexico has done something no other state has done: made child care a right, and made it permanent. With more than 13,000 new children enrolled since the state removed income limits last November, the 2026 session solidified that progress with $160 million to expand universal child care, $30 million over three years to implement a wage and career ladder for early childhood professionals, and $20 million in capital outlay funding to expand child care capacity statewide.

Senate Bill 241 establishes universal access to affordable child care statewide. The bill protects families from mandatory co-pays except under specific economic triggers — and even then, only households earning above $163,920 annually (600% of the federal poverty level for a family of three) would pay anything. The bill also builds in fiscal safeguards so that if inflation spikes or oil revenues decline, the program can adjust without collapsing.

Senate Bill 96 removes local barriers to child care expansion by establishing consistent statewide rules, including automatically allowing regulated child care homes in residential zones and clarifying where child care centers can operate.

Health care access

New Mexico is more than 5,000 health care providers short. This session, the governor and legislature advanced a series of measures to close that gap and ensure affordable care for every New Mexican.

The budget also includes more than $17 billion in total funding—including nearly $3 billion from the General Fund—to bolster health care programs, strategic health initiatives and hospital operations, helping to offset federal funding cuts and Medicaid.

House Bill 99 modernizes New Mexico’s medical malpractice liability framework to reduce the cost of malpractice insurance and attract more doctors to a state that has long been underserved. The bill creates tiered, inflation-adjusted caps on punitive damages — $1 million for independent providers, $6 million for locally owned hospitals, and $15 million for large systems — and raises the evidentiary standard to “clear and convincing,” requiring judicial review before punitive damage claims can proceed.

Senate Bill 1 and House Bill 50, signed into law by the governor on Feb. 5, authorize interstate licensing compacts that allow qualified physicians and social workers licensed in other states to practice in New Mexico without redundant paperwork. The compacts are a direct response to the state’s provider shortage and will have particular impact in rural and underserved communities that struggle to recruit and retain specialists.

House Bill 4 increases revenue to the Health Care Affordability Fund, ensuring New Mexico can continue to keep coverage affordable for working families and small businesses. The FY27 executive budget includes $366 million for programs supported by the fund, protecting health coverage for up to 46,600 New Mexicans and reducing health care costs for up to 122,000 people statewide — a critical backstop as federal actions threaten enhanced premium tax credits and Medicaid funding.

The budget also includes $546 million to build the UNM School of Medicine, and $25 million for the Health Care Professional Loan Repayment program—a program aimed at building New Mexico’s health care workforce by repaying student loans.

Infrastructure

This session, the state is investing $4.14 billion in community infrastructure and housing — more than $1,900 for every New Mexican. That total includes $976 million in nonrecurring infrastructure funding in the state budget for transportation, water, energy and housing Capital projects funded through general obligation bonds, severance tax bonds, general fund and other state funds add another $1.65 billion. The legislature also authorized $1.5 billion in transportation bonds through SB 2, which Governor Lujan Grisham signed earlier this month. The state budget with capital provides more than $175 million for affordable housing and related initiatives.

Senate Bill 2, a $1.5 billion transportation bonding package, was among the first bills approved and signed this session. It positions the state to tackle a massive backlog of road and bridge projects, creates a stable and predictable funding source for road construction for years to come, and allows New Mexico to better leverage federal infrastructure dollars — amplifying state investments several times over.

Public safety

This session, Governor Lujan Grisham and the legislature took concrete steps to make New Mexico communities safer — strengthening the mental health crisis response system, protecting law enforcement officers, and building the public safety workforce for the long term. The governor recognizes that there is still much more work to do until every New Mexican feels safe in her community.

Senate Bill 3 reforms mental health crisis intervention by clarifying the legal definitions of “harm to self” and “harm to others” that govern when someone in crisis can receive involuntary treatment. The bill creates a clearer framework for law enforcement and clinicians to intervene when someone poses a danger to themselves or others, with a focus on delivering stabilization and treatment rather than punishment.

Senate Bill 41 eliminates the statute of limitations on sex crimes committed against children — ensuring that victims can come forward at any time to seek justice.

House Bill 61 addresses a sentencing inconsistency in state law regarding aggravated battery offenses against peace officers. Currently, shooting at and missing a law enforcement officer is classified as a second-degree felony, while shooting at and hitting an officer is only a third-degree felony. The bill corrects this disparity to make both offenses a second-degree felony and enhances penalties for attacks on law enforcement.

House Bill 43 strengthens survivor pension benefits for families of police officers, firefighters and correctional officers killed in the line of duty. The bill removes inconsistencies in survivor pension eligibility that previously left some families without adequate support, clarifies that designated beneficiaries and surviving spouses can receive benefits when an officer dies on duty and ensures surviving children receive proper pension support. The legislation also allows state firefighters injured on the job to continue earning service credit during workers’ compensation leave, protecting their retirement benefits during recovery from line-of-duty injuries.

House Bill 255 creates a unified public safety recruitment and retention program, unlocking over $40 million for law enforcement, fire, EMS, detention and public attorneys.

Education

The legislature advanced a suite of education bills grounded in evidence and aimed at measurable results for New Mexico students.

The budget includes $4.7 billion in recurring funding with $137 million to infuse special programs, including $35 million for Career Technical Education, $29 million for reading and math intervention programs, $20 million for educator fellowships, $14.6 million for literacy coaches and $10 million for summer internships for high school students.

Senate Bill 37, the High Quality Literacy Instruction Act, codifies evidence-based structured literacy instruction into state law, requires reading assessments for students in kindergarten through third grade, mandates parent notification when a child is struggling, and places literacy coaches in schools to support teachers.

Senate Bill 29 raises math coursework requirements for teacher licensure, directs the Public Education Department to develop a Mathematics Instructional Leadership Framework, and — beginning in the 2027-28 school year — requires early math screening in grades K-3 with parent-notified support plans for at-risk students.

Senate Bill 64 formally codifies the Office of Special Education in state statute, embedding it within the Public Education Department and creating clear lines of authority for the delivery of services to students with disabilities statewide.

Economic development

The 2026 session invested more than $500 million in economic development, including more than $270 million in emerging technologies like fusion and quantum and more than $190 million to kick off a historic revitalization of the State Fairgrounds in Albuquerque’s International District.