ABQ Journal (Jan. 8, 2026) – With less than two weeks until the start of a 30-day legislative session, a budget battle could be brewing at the Roundhouse.
A key New Mexico legislative panel rolled out an $11.1 billion budget plan Wednesday that features significantly less proposed spending growth than a plan unveiled last month by Gov. Michelle Lujan Grisham.
Specifically, the Legislative Finance Committee’s spending plan would increase year-overyear state spending by about $268 million, or roughly 2.5%. In contrast, the governor’s budget recommendation
calls for spending to increase by about $503 million, or roughly 4.6%, over current levels.
The difference between the dueling spending plans is primarily attributable to higher proposed spending amounts in the governor’s budget in two areas: Health care administrative costs imposed by a new federal budget bill and a universal child care initiative announced in September.
Several legislators have expressed misgivings about the hefty price tag and rollout of the universal child care plan, which made New Mexico the first state in the nation to offer free child care to all families regardless of income levels.
During a Wednesday news conference at the state Capitol, Rep. Nathan Small, D-Las Cruces, said the LFC’s budget plan does not include an additional $160 million to prop up the program for the coming year that was included in the executive plan.
He said lawmakers are keenly focused on addressing affordability issues for New Mexico families, but indicated the Legislature is not fully on board with removing income limits for receiving state-paid child care.
“We have to do that in a responsible way that financially works,” said Small, who is the LFC’s chairman.
