Governor Lujan Grisham’s $10.9 Billion Budget Plan for FY 26 is a 7% Increase Over Current Spending Levels
Santa Fe, NM – On Wednesday, the New Mexico Executive branch of government released its $10.9 billion spending recommendations for Fiscal Year 2026, to the Legislature and the public. The budget represents about a 7% increase over current state spending.
In an accompanying press release, the Governor wrote, “Today’s budget release comes more than a month before the Jan. 21 start of the New Mexico Legislature, providing lawmakers and the public as much time as possible to review the document and provide input.”
“Transparency drives trust,” said Lujan Grisham. “Our early release of the executive budget ensures everyone has time to review our priorities for New Mexico.”
The press release also offered the following statement of the Governor:
“This fiscally sound budget proposal prioritizes early childhood education, clean energy, infrastructure, affordable housing, and expanded healthcare access to build a stronger foundation for New Mexicans. My administration looks forward to discussing these proposals with state lawmakers and reaching consensus on the priorities that matter most to our state.”
Key elements of the Governor’s budget proposal include,
$300 million for road construction and maintenance,
$6 million capital request for state zero-emission vehicles
$70 million for new Accelerate ConnectNM Program
$10 million for cybersecurity
$5 million for water planning and water data
$75 million for the Strategic Water Supply
$50 million to clean up contaminated groundwater
$15 million capital request to fund rural water infrastructure projects
$28.7 million for aquifer monitoring and groundwater research
$10 million to support water-conservation technologies and practices in agriculture
$20 million to expand state-level investment in geothermal projects
$6 million for community energy efficiency block grants
$50 million capital request for the Reforestation Center Facility
The budget also contains funding for a 3% pay increase for school employees and money that is being reported to grant state agencies leaders flexibility in distributing pay increases.
Earlier in the day, the Legislative Finance Committee was wrapping up the last week of meetings with state agency leaders on the budget recommendations it will present to the full House and Senate early in January.
The LFC Chairman, Senator George Munoz, announced the committee would take a vote today on the items it will have its staff develop into what is traditionally a massive three volume set of documents reviewing the success or failures of agencies to meet the current budget goals, back-up documentation of revenues and spending, potential supplemental spending, and its state budget proposals for the next fiscal year, which begins on July 1, 2025.
A copy of the Governor’s recommendation can be found embedded below, and can be downloaded.
The Candle will provide detailed analysis of various agency spending proposals of her plan over the next three weeks.
New Mexico Executive Budget Recommendation FY26 (July 1, 2025 – June 30, 2026)