01/12/2026 | Press release | Distributed by Public on 01/12/2026 18:09
When the Second Session of the 57th New Mexico Legislature begins on Tuesday, Jan. 20, legislators and the executive branch will face difficult decisions on how to invest in New Mexico during the 30-day session, given revenue projections that have been trending downward from previous years.
As of December 2025, approximately $105 million ($892 million) in "new" revenue projections are anticipated heading into the session. In August 2025, the new revenue projections for the 2026 legislative session were approximately $484.8 million. "New money" is defined as projected recurring revenues for the following fiscal year minus current year recurring appropriations. The state is publishing minor updates and associated revisions to those numbers this week.
The FY27 Executive Budget Recommendation from Gov. Michelle Lujan Grisham's administration totals $11.3 billion in recurring spending statewide, an increase of 4.6 percent from FY26. The executive recommendation also maintains reserves at 30 percent, totaling $3.4 billion. For FY27, the overall recommendation includes $1.48 billion in recurring general fund appropriations to the Higher Education Department and New Mexico higher education institutions, which includes $168 million for the Opportunity Scholarship, an increase from $146 million last year.
Similarly, the FY27 Legislative Budget Recommendation from the Legislative Finance Committee (LFC) similarly totals $11.1 billion, a 2.5 percent increase, or $268 million increase over FY26 spending statewide. Reserves would be 33 percent of planned spending. In this proposed scenario, the Higher Education Department and the state's colleges and universities would get $51.3 million more in FY27 over FY26, or 3.6 percent.
As New Mexico's flagship university, The University of New Mexico enters the 2026 legislative session focused on priorities that strengthen health care, expand educational opportunity, promote cutting edge research, build a homegrown workforce, and enhance the state's long-term competitiveness.
Aligned with UNM 2040, the University's long-term strategic framework, UNM's FY27 legislative priorities emphasize investments that improve outcomes for students, patients, communities, and the state as a whole, particularly in rural and underserved areas.
UNM's legislative agenda centers on four priority areas:
Improve Health Care Access and Health Outcomes Statewide
UNM seeks to expand New Mexico's health care workforce and improve outcomes, particularly in rural and underserved communities.
Develop a Well Educated, Homegrown Workforce and Contribute to a Diversified Economy
UNM advances workforce readiness and innovation through education, research, and economic development.
Enhance Equitable Educational Access, Student Support Services and Campus Safety
UNM prioritizes affordability, student success, and safe, accessible learning environments.
Improve New Mexico's National Competitiveness and Resident Quality of Life
UNM supports policies that strengthen workforce stability and statewide resilience.
In terms of specific capital outlay projects, UNM has identified several campus and infrastructure projects also interconnected to the UNM 2040 Goals including:
Central Campus
Health Sciences Capital Priorities
UNM Branch Campuses
Gallup campus
Los Alamos Campus
Taos Campus
Valencia Campus
The session will end at noon on Thursday, Feb. 19.
For more information on the 2026 Legislative Session, visit Government Relations.