New Mexico
New Mexico Senate endorses budget bill emphasizing savings during oil sector windfall
SANTA FE, N.M. (AP) — New Mexico is preparing to set aside billions of dollars to sustain government spending in the future in case an oil production bonanza fades in the transition to cleaner sources of energy. The Senate on Monday approved a $10.2 billion annual spending plan that also creates new endowments and trusts designed to support critical programs in the future. The 31-10 Senate vote sends the bill back to the House for concurrence on amendments. The Democratic-led Legislature has until noon on Thursday to send a budget bill to Democratic Gov. Michelle Lujan Grisham for consideration.
SANTA FE, N.M. (AP) — New Mexico would set aside well over $1 billion to guarantee tuition-free college and sustain government spending in case its oil production bonanza fades in the transition to cleaner energy sources under an annual spending plan endorsed by the state Senate on Monday.
The 31-10 Senate vote sends the bill back to the House for concurrence on amendments. The Democratic-led Legislature has until noon Thursday to send a budget bill to Democratic Gov. Michelle Lujan Grisham, who can approve or veto any provisions.
The bill as amended would increase annual general fund spending by $653 million, or 6.8%, to $10.2 billion for the fiscal year running from July 2024 through June 2025.
The boost in state spending is dwarfed by more than $1.3 billion in general fund transfers to new endowments and trusts designed to bolster scholarships for college and professional training, housing construction, outdoor conservation programs and autonomous Native American education programs.
Legislators anticipate a $3.5 billion budget surplus for the coming fiscal year, driven largely by oil and natural gas production in the Permian Basin that overlaps southwestern New Mexico and western Texas.
Republican state Sen. William Burt of Alamogordo urged colleagues to support the bill “because oil and gas won’t always be there for us.”
“We’ve got to look farther than the next few years. We’ve got to look at the long … future of New Mexico,” said Burt, one of six Republicans who voted for the spending bill.
The budget plan includes a new $959 million trust to permanently underwrite tuition-free college without fees for New Mexico residents — an initiative championed by Grisham since taking office in 2019. Public scholarships still are supported in part by lottery ticket sales.
The bill allocates $512 million to a “government results and opportunity” trust that would underwrite a variety of new programs during a three-year vetting period before future funding is guaranteed.
Another $75 million fund would help state and local governments compete for more federal infrastructure spending from the Inflation Reduction Act, the Biden administration’s signature climate, health care and tax package.
A conservation fund established in 2023 would get a $300 million infusion. Democratic Senate Majority Leader Peter Wirth said that would guarantee annual distributions of about $21 million to an array of conservation programs at state natural resources agencies, from soil enhancement programs in agriculture to conservation of threatened and big-game species.
A revolving loan fund to finance construction would receive a $175 million infusion to expand both housing and commercial building inventory.
“New Mexico, you are not a poor state,” said state Sen. George Muñoz of Gallup, the Senate’s lead budget negotiator, urging colleagues to endorse the budget and its investment strategy.
Democratic state Sen. Bill Soules of Las Cruces voted for the bill but cautioned that the state shouldn’t lose sight of such urgent concerns as childhood poverty as it builds up savings and investments. The bill includes funding for universal free school breakfasts and lunches.
“Are we afraid of the future and so afraid that we’re going to put money away for the future instead of addressing the needs today?” Soules said. “Making sure children don’t go hungry in New Mexico, aren’t abused and have a place to sleep at night — all of those are our obligations.”
Major annual spending increases include a 6.1% boost to K-12 public school funding, to $4.4 billion.
Medicaid spending would increase by $180 million, or 11%, as pandemic-era federal subsidies for the program recede and New Mexico increases payment rates to medical providers, including care for women with newborn children. The budget bill also increases pay by 3% for state employees and staff at K-12 schools, state colleges and public universities at an annual cost of $214 million.
It would funnel more money to rural hospitals, literacy programs, state police salaries, safety-net programs for seniors and road construction and maintenance.
Several provisions of the budget are contingent upon approval of companion legislation:
—New Mexico would become the 14th state to ensure paid time off to workers when they’re seriously ill or to care for newborns and loved ones under a bill that advanced Monday toward a decisive House floor vote after Senate approval. The budget would provide at least $24 million to launch the program, which funds leave through a combination of employee and employer contributions.
—Final passage is still pending on changes that would reduce personal income taxes across the earnings spectrum, collect more taxes on investment income, and provide tax credits toward the purchase of new and used electric vehicles that can be combined with federal subsidies. State government would forgo about $220 million in annual income. The bill passed the Senate on a 26-13 vote Monday, and awaits a House concurrence vote.
—Final approval also was pending Monday on several new endowments and trusts.
SANTA FE, N.M. – Gov. Michelle Lujan Grisham asked Attorney General Raúl Torrez to investigate whether any Drug Enforcement Administration agents broke state law when pills reached New Mexico streets.
In a statement, Lujan Grisham said, “make no mistake: the DEA knew people would die if these pills made it into New Mexico communities.”
The governor also shared a timeline from 2022 to 2025 that she said shows when she asked federal officials for help with New Mexico’s fentanyl crisis and violent crime.
Lujan Grisham said the first request came on June 21, 2022, when she wrote to then-Federal Bureau of Investigation Director Christopher Wray and asked for 50 additional federal agents.
She said she wrote to then-Attorney General Merrick Garland on Sept. 15, 2022, asking for more agents, resources and support for New Mexico law enforcement.
Lujan Grisham said she wrote Garland a second time on Aug. 8, 2023, with the same request.
What came next?
About a month later, Lujan Grisham said she sent Garland a third letter and said New Mexico needed more federal law enforcement to curb violent crime, drug trafficking and human trafficking.
She said her most recent request came on Sept. 4, 2025, when she wrote to former Attorney General Pam Bondi and again asked for additional agents and resources.
The governor’s statement says those requests span several years as she pressed the federal government for more help in New Mexico.
Full statement from Gov. Michelle Lujan Grisham:
“I am appalled by reporting this week by the Associated Press and Albuquerque Journal that revealed federal authorities made a deliberate decision to let hundreds of thousands of fentanyl pills flood into New Mexico communities, despite knowing that fentanyl is so lethal the White House has designated it a weapon of mass destruction.
Let me say that again: the Drug Enforcement Administration watched as 74,000 fentanyl pills were delivered to a mobile home park in Albuquerque, and they did nothing. And that’s just one transaction. Shockingly, the federal government stood by while monitoring shipments, tallying exact pill counts, and watching as these deadly drugs hit the streets.
There are no words to describe how reckless and dangerous these decisions were. Make no mistake: the DEA knew people would die if these pills made it into New Mexico communities, and the agency let it happen anyway. The result: hundreds of New Mexican parents burying their kids. Hundreds of New Mexican kids growing up without stable parents. All while the federal government stood by.
If the justification for letting these pills flood our communities was that it would somehow make New Mexico safer down the road through bigger eventual busts, the results say otherwise. New Mexico now leads the nation in the increase in overdose deaths for the second straight year, despite deaths dropping nationwide.
Today, I wrote to Attorney General Raúl Torrez and asked him to investigate whether any federal agents broke state law when they allowed lethal drugs to remain on our streets, and to prosecute anyone responsible — regardless of whether they are a federal agent or not.
I have spent years working across two administrations — writing letters, traveling to Washington, meeting directly with President Joe Biden and his cabinet, pushing for accountability, asking for more federal agents to be deployed to New Mexico to help fight this crisis.
- On June 21, 2022, I wrote to FBI Director Christopher Wray, imploring the FBI to assign no less than 50 additional agents to New Mexico to stem escalating drug trafficking and violent crime.
- On September 15, 2022, I wrote to Attorney General Merrick Garland, requesting that the Department of Justice provide additional federal agents, resources and support to New Mexico law enforcement. We asked the department to match the level of investigative, analytical, and technical resources the FBI had deployed in its Buffalo, NY surge.
- On August 8, 2023, I wrote again to Attorney General Garland, renewing my request that the DOJ expeditiously assign more federal agents to New Mexico.
- On September 7, 2023, I wrote to Attorney General Garland for a third time, reiterating my request once more federal law enforcement support to curb violent crime, drug and human trafficking.
- On September 4, 2025, I wrote to Attorney General Pam Bondi, once again requesting additional agents and resources.
I have declared the surge of drugs like fentanyl to be a public health emergency. I have deployed the National Guard to both Albuquerque and Española. While my administration was doing everything we could to stem the tide of fentanyl coming into our state, the federal government deliberately allowed it to flood in.
New Mexican lives are not the federal government’s cost of doing business.
I plan to hold the federal government accountable for this disaster and will explore every possible avenue of action against the federal government to right these wrongs.”
The Canyon Venado Fire has grown to 852 acres east of Clines Corners and crews say wind farms in the area are threatened.
CLINES CORNERS, N.M. – The Canyon Venado Fire has grown to 852 acres east of Clines Corners and crews say wind farms in the area are threatened.
The fire is burning just east of Clines Corners, south of Interstate 40.
It forced the closure of eastbound Interstate 40 at Clines Corners on Tuesday night. I-40 reopened Tuesday night. I-40 is back open but smoke still affects visibility.
“We’re on the side of I-40 so drivers have to be pretty cautious. As far as our establishment itself we’re pretty isolated by the freeway itself as a nice fire break,” said Lincoln Tarantino, Clines Corner general manager.
The fire has burned around 852 acres, up from just 20 at this time Monday.
Crews say the fire is not contained and wind farms in the area are threatened.
New Mexico
Feds allowed millions of fentanyl pills to ‘walk’ on New Mexico streets: DEA Whistleblower
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