Total recurring spending reflected in the bill for FY26 is just over $10.79 billion, almost $611 million, or 6%, above FY25. The bill also keeps state reserves at 30%, reflecting the target set by the Legislative Finance Committee in budget guidelines adopted in fall 2025. For nonrecurring appropriations, when considering all revenue sources, the HB 2 amendment appropriates a total of $1.56 billion for special appropriations, $183.7 million for supplemental and deficiency appropriations, $107.4 million in information technology appropriations, $457.8 million in Government Results and Opportunity fund spending, typically for two-to-three-year pilot programs, $1.6 billion in fund transfers and $189.5 million for transportation. Other Appropriations Contained in HB 2 • $24 million in site readiness, which prepares prime, construction-ready locations for companies to quickly and easily set up in New Mexico. • $25 million in funding for research and development initiatives to help attract new and growing industries to the state. • $65 million for road maintenance across New Mexico. • $12 million for rural air service statewide. • Funds research to strategically plan the state’s water future, with $19 million to New Mexico Tech for groundwater monitoring and improvements, and $4 million for water research at New Mexico State University. • $20 million to clean up abandoned uranium mines and other contaminated sites. • $50 million to help New Mexico communities recover from fires and floods. • Directs $1.24 million to hot shot fire crews, watershed management and forest restoration. • $4 million to law enforcement recruitment and retention. • $500,000 for crime victim reparations. • $2 million to support victims and survivors of sexual assault and domestic violence. • $15 billion in state and federal funding for Medicaid and other critical health care services. • Dedicates substantial funding to mental and behavioral health care, including $280 million to expand infrastructure and access with regional coordination to get funds to areas most in need, and key funding for crisis response systems. • $100 million down payment to start the new Behavioral Health Trust Fund. • $25 million to the Rural Health Care Delivery Fund to expand health care in rural areas. • $110 million to targeted housing development, including transitional housing, with a focus on Albuquerque, Bernalillo and Dona Ana counties. • $45.9 million available to housing providers to focus on specialized housing solutions and a strategic response to homelessness. • Improves food security for New Mexicans with $10 million in annual funding for food banks. • $4.7 billion in recurring funding for public education, a 6% increase over last year. • Raises minimum teacher salaries by $5,000 per license level. • Increase funding to the Early Childhood Education and Care Department by $170 million, or 21.6%, to greatly expand pre-K, childcare assistance, home visiting and tribal language support. • Increase public school funding by $76 million to support students in grades 6-12. • Continues funding for the teacher loan repayment program, to retain and attract more educators to New Mexico. The NMBA Legislative Priority List of Bills Supported or Opposed Public Banking Act (HB 130): The bill did not pass; NMBA opposed it. The bill would have enacted the Public Banking Act in which it would establish the Public Bank of New Mexico. The bill is very similar to the bills which have been introduced in past legislative sessions — establishing a board of directors; permitting certain investments, lending actions, purchases and property transactions. The bill appropriated $50 million to the state banking fund to capitalize the bank. Only $4 million could be utilized for establishing and chartering the bank and developing the bank’s lending program. Another $60 million was appropriated to the bank to be deposited in an account with the bank. Artificial Intelligence Regulation (HB 60): The bill did not pass; NMBA opposed it. The bill would have enacted the Artificial Intelligence Act. Artificial intelligence system is defined as a machine-based system that for an explicit or implicit objective infers from the inputs the system receives how to generate outputs, including content, decisions, predictions or recommendations that can influence physical or virtual environment. The bill required notice of use, documentation of systems, disclosure of algorithmic discrimination risk and risk incidents. It also required risk management policies and impact assessments. It provided for enforcement by the State Department of Justice and for civil actions by consumers for injunctive or declaratory relief. The bill was patterned after a recently-enacted AI bill in Colorado. It contained a definition of financial institution, which was too narrow. Paid Family and Medical Leave Act (HB 11): The bill did not pass; NMBA opposed it. This issue has been one of the more controversial proposals facing the legislature since 2019. Under the proposal, employees would pay 0.5% of wages while employers with five or more employees would pay 0.4% payroll tax. The rates are subject to adjustment annually. A state-run fund was established to administer leave payments. The bill applied to all industries and mandates compliance. 7
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