On October 1, Governor Michell Lujan Grisham called the New Mexico Legislature into Special Session to address the significant challenges of federal funding cuts resulting from President Trump’s budget reconciliation bill H.R.1, the so-called “One Big Beautiful Bill Act”. On October 2, The New Mexico House and Senate adjourned completing the special session after enacting millions in funding to offset anticipated federal funding cuts to state programs. Senators adjourned just after noon, while the House remained in session until 5:15 p.m.
The second day of the special session saw most of the bills on the governor’s agenda pass both chambers of the legislature and head to the governor’s desk, including House Bill 2. The goal of HB 2 is to make sure health insurance premiums remain low, even if tax credits on the federal level expire. It uses subsidies from its health care affordability fund to cover those costs. According to the Health Care Authority, up to 27,000 New Mexicans are at risk of losing health insurance if the tax credits expire.
The House and Senate approved upwards of $125 million in funding into food assistance programs and health care access and affordability. Lawmakers also approved extra funding for behavioral health programs and some state agencies, along with a few slight changes to the state’s criminal competency laws. They also approved a bill giving the state Department of Health more power over the state’s vaccine guidelines.
The anticipated surge in health insurance premiums come January as a result of enactment of Trump’s “One Big Beautiful Bill Act” which he signed into law on July 4 was one of the biggest concerns addressed by the special session. Federal Affordable Care Act tax credits will expire on December 31. Democratic leaders have said the New Mexico families utilizing the state’s health insurance program known as the BeWell New Mexico will likely see their insurance costs skyrocket. House Majority Floor Leader Reena Sczepanski described the crisis this way:
“For example, for a household of two living in Taos County with a combined income of $95,000, their monthly insurance cost will jump from $150 a month to $2,845. That’s $32,000 more per year.”
State lawmakers were able to get ahead of the funding crisis by approving a bill allowing the state’s Health Care Authority to provide subsidies to keep those insurance costs down for New Mexicans above the current income limits, and investing another $17 million into the program to accomplish that. The strategy gained strong bipartisan support during this session, but Republican leaders say it’s not something state leaders should rely on moving forward. ” Republican State Senator Pat Woods said this:
“This is very much a band-aid, I understand that, but it’s going to come to the point that we can’t depend on the federal government – and I don’t give a rip who’s in that office up there – to keep providing as much money to New Mexico as they have.”
State lawmakers are already preparing other solutions for the upcoming 30-day session to mitigate upcoming changes to Medicaid.
The legislature also enacted during the Special Session a state funding bill that included money to prepare the state to join an interstate medical compact, allowing doctors in other participating states to treat New Mexican patients. Notwithstanding the Governors originally announced intent not to include hot button issues in the special session, she has included the hot button issue of studying and preparing for the implementation of an interstate medical licensing compact which is an agreement among states to accept medical licenses from other states that have adopted such compacts. It would allow a doctor licensed in another state to simply show that they are a licensed physician in another state in order to have the NM Medical Board to quickly approve a license to practice in New Mexico. Such compacts allow health care workers licensed in other states to work in New Mexico, which advocates say would address the state’s shortage of medical professionals. New Mexico is a member of just one interstate compact agreement which is for nurses and is one of only four states that participate in one or fewer compacts. Earlier this year, lawmakers passed seven compact agreements out of the state House, but all stalled in the state Senate.
The Interstate Medical Compact is expected to be dealt with in the 30-day regular session that begins on January 20, 2026 .
LEGISLATION ENACTED
Following is a break down of the legislation enacted during the two day special session:
FUNDING PASSED TO COVER FEDERAL CUTS
House Bill 1 provides $162 million to different areas in response to federal funding cuts. It includes $66 million for the state’s Healthcare Authority for a number of programs including maintaining SNAP food benefits, bunding food banks, funding school-based food programs, and reducing health insurance costs. Doña Ana County Democrat Representative Nathan Small said this:
“[ House Bill 1 is] going to help over 6,000 New Mexico families avoid massive insurance premium increases, allow them to keep insuring themselves and their families. … We’ve been working this entire summer and will go into the 30-day session again looking at maintaining, whether in this case a year in a half, looking further especially in some of these critical areas.”
HB 1 also transfers $50 million to the rural healthcare fund to keep rural facilities open and allocates $6 million to keep public broadcasting up and running.
These are just one-time allotments lasting through July 2026 or July 2027 depending on the program. Democrats said they can address what may need to become re-occurring and how to fund that in the 30-day session in January.
HEALTHCARE SUBSIDIES PASS
House Bill 2 passed with bipartisan support. It will cover the gap left by Biden-era tax credits that made Affordable Care Act premiums more affordable for households with incomes over 400% of the federal poverty level. The tax credits will expire at the end of the year unless Congress renews them.
According to an Albuquerque Journal analysis of marketplace data compiled by health policy nonprofit Kaiser Family Foundation, when the tax credits expire at the end of the year, New Mexicans will have some of the highest Affordable Care Act rate increases in the country. Premiums will increase by an average of 35.7%, per the state Office of the Superintendent of Insurance.
Without the subsidies, an Albuquerque couple nearing retirement age with a combined annual income of $84,600 would see a 311% increase in their monthly Affordable Care Act premiums according to marketplace data. The couple would spend $2,462 a month, or 35% of their total income , on their marketplace coverage. With the subsidies guaranteed by HB2, their monthly health insurance cost will be around $600.
The bill received support from both sides of the aisle. It passed in the House with a vote of 49-13 and in the Senate with a vote of 34-3.
RURAL HEALTH CARE LEGISLATION
Senate Bill 1 passed designating $50 million to support rural healthcare across the state and expand the use for the funds for hospitals and allow counties with more than 100,000 residents to apply.
A last minute attempt was made to approve New Mexico’s entry into interstate compacts for physicians. During debate, Rep. Jenifer Jones (R-Deming) introduced a substitute bill, which included the same language as the original Senate Bill 1, but also appended Senate Bill 9 to include compact entry and lower barriers to licensing doctors from other states.
Rep. Andrea Romero (D-Santa Fe) objected asserting that the Senate had already adjourned and would not return to address any changes to the bill and the changes would render the bill unconstitutional, and fall outside the scope of Gov. Michelle Lujan Grisham’s proclamation. Romero said this:
“If we do pass this substitute under our rules, not only is it counter to our Constitution, it would be unfortunately dead on arrival to the Senate, since they are no longer in session.”
Speaker of the House Javier Martínez ruled that the substitute bill would not be allowed under the rules, noting the narrow allowance in the proclamation.
Montoya and Jones challenged Martínez’s ruling, which failed on a 42-22 vote.
Additional concerns raised by Republicans included the concern that hospitals in Albuquerque or Santa Fe would receive the funds rather than rural areas in other portions of the state. Rep. Liz Thomson said this:
“Sandoval County has over 100,000 people but also has communities like Jemez. … So it would allow medical facilities in Jemez to apply for grants.”
CRIMINAL COMPETENCY LEGISLATION
The House had a near-unanimous passage of Senate Bill 2, which will allow the Bernalillo County Metropolitan Court to determine competency which previously required district court involvement fixing a change made in amendment to House Bill 8 during the 60-day session.
Rep. Christine Chandler (D-Los Alamos), the sponsor, said the amendment shifted cases from metropolitan court into the district court, increasing caseloads unnecessarily. Chandler said this:
“It’s ironic we were delegating upward instead of delegating downward.”
Only three Republicans voted against the bill: Reps. Stefani Lord from Sandia Park, John Block from Alamogordo and Randall Pettigrew of Lovington.
VACCINE POLICY LEGISLATION
The house passed Senate Bill 3, which will expand the New Mexico Department of Health’s authority to purchase COVID-19 vaccines for children. It allows the Department of Health to use additional sources than a sole federal advisory committee to create guidelines for school and daycare vaccination policy amid federal upheaval.
Senate Bill 3 drew hours of Republican opposition throughout the session and, finally, in the House, with sponsor Dayan Hochman-Vigil (D-Albuquerque) defending the process through which the bill was introduced and debated. Republican lawmakers previously complained they only had four minutes to ask questions during a committee debate earlier, and they said the bill had changed repeatedly.
Rep. Jenifer Jones (R), Las Cruces said this:
“I do want people who need or want a COVID shot to have access to it. I’m also very sensitive to my constituents who believe this opens up a possibility even a discussion about losing parental rights in any way or even a discussion.”
Dayan Hochman-Vigil (D), Majority Whip said this:
“This is not about taking away your choice not to get the vaccine. This is about ensuring that those who make the choice to get the vaccine have access to the vaccine, and if they make that choice, that’s all this is about.”
Hochman-Vigil closed more than two hours of debate acknowledging that vaccines are a “highly politicized issue”.
The vote on the vaccine bill broke down along party lines, 43-26, with Republicans voting NO in opposition and Democrats YES in favor
Despite the bill’s passage, the House did not meet the two-thirds threshold needed to enact the bill immediately under an emergency clause, which means the bill will not become law until 90 days from the end of the session or until Dec. 31, 2025.
Governor Lujan Grisham said this in a statement regarding the vaccine policy legislation:
“There is no good reason for Republicans to make New Mexicans wait 90 days for vaccines they need to protect their health. … I’m deeply disappointed in Republicans for voting to restrict vaccines, but our Department of Health remains committed to vaccine access.”
A SESSION OF “TEMPORARY FIXES”
Governor Lujan Grisham said this in a statement after lawmakers adjourned the Special Session:
“We refuse to let New Mexico families fall through the cracks because Republicans in Washington have abandoned their responsibility to the American people.”
While describing the special session bills as urgently needed responses to federal budget cuts, top Democrats said more work needs to be done in a state with one of the nation’s highest percentages of residents enrolled in Medicaid.
Describing the legislation enacted to deal with federal budget cuts as “temporary fixes, New Mexico Speaker of the House Javier Martinez said this after the session concluded:
“No state in the nation can withstand the immensity and the cruelty of these cuts [in the federal bill]. .. I’m feeling good. we came in laser focused on addressing the most urgent needs for New Mexico’s families from food security to health care insurance, and we delivered.”
House Democratic floor leader Reena Szczepanski of Santa Fe said lawmakers will have to “go back to the drawing board” to ensure state residents have access to health care.
Senate Majority Leader Peter Wirth (D-Santa Fe) said this:
“I want to thank all the members in this chamber for the 25 hours of work that we have done, we’ve worked hard, we’ve worked together, and again as a result of that we have finished the work of the senate.”
While Democrats described the special session as a success, Republican lawmakers were not upbeat at all and aired grievances on how they were treated. Republican leaders held a conference following the conclusion of the Senate chamber, expressing disappointment over the lack of crime and New Mexico Children, Youth, and Families Department bills on the special session agenda.
Multiple House Republican lawmakers aired grievances about the special session’s agenda and being excluded from pre-session negotiations between Governor’s Office staffers and top-ranking Democrats. They railed against time limits imposed by Democratic committee chairs for each legislator to ask questions about bills.
House Republican floor leader Gail Armstrong of Magdalena saisd this during the news conference:
“We represent half of this state and it seems like the Democratic leadership doesn’t give a darn.”
Republican minority floor leader Sen. William Sharer said this about the Special Session:
“Our issues were not addressed at all. We did some things but this so called special session just wasn’t that special.”
House Speaker Javier Martinez did not directly address Republicans criticism, but said he never ignores meeting requests or phone calls from Republican lawmakers. Martínez said this:
“I am sorry that you all don’t feel like you’ve been included. … It was not on purpose.”
Speaker Martinez contrasted the Legislature’s special session work with the ongoing federal government shutdown that reached its second day on Thursday. Martínez said this during the news conference after the special session ended:
“While Washington sits in dysfunction, this Legislature and in particular this caucus continue to show how we can work with civility and on behalf of New Mexicans.”
Lawmakers will return to the state capital for the regular 30-day legislative session on January 20, 2026.
Links to quoted or relied upon news sources are here:
https://www.kob.com/new-mexico/lawmakers-wrap-up-special-session-in-santa-fe/
https://www.koat.com/article/new-mexico-special-session-ends-2025/68485172
COMMENTARY AND ANALYSIS
The October 1 special session was rightly designed to find ways to offset the impact of federal funding cuts passed by Congress and signed into law by President Trump on July 4. The goal was to ensure initiatives like the rural health care delivery fund and food assistance programs could continue operating and make sure Medicaid recipients do not lose health coverage. Despite being a session described as a session of “temporary fixes”, it can only be described as a solid success ignoring the negativity espoused by the the New Mexico MAGA Republican leadership.
Links to other quoted or relied upon articles are here: