New Mexico Governor Michelle Lujan Grisham has signed four emergency bills to address the impact of recent federal cuts to food assistance and health care programs. The legislation, enacted during a special session called by the governor, will provide $162 million in state funds to maintain essential services for residents.
“When federal support falls short, New Mexico steps up — that’s our commitment to families who depend on these services,” said Lujan Grisham. “This funding protects the basics: food security, affordable health care, and access to care.”
House Bill 1 allocates $162 million in emergency funding to respond to federal reductions in food assistance and other urgent needs. The Health Care Authority will receive $66 million, which includes funds for maintaining SNAP benefits, supporting food banks and school-based programs, retaining staff at universities, and upgrading IT systems. Additionally, $17 million is designated to reduce health insurance costs on the state exchange.
The bill also moves $30 million into the state’s emergency contingency fund and $50 million into the rural healthcare fund. It provides $8 million for budget shortfalls at the Regulation and Licensing Department and $6 million for public broadcasting protection. To help offset expenses, the state is recovering $120 million from unspent Health Care Authority funds while keeping financial reserves at 32% of annual spending.
House Bill 2 removes income caps for state-subsidized health insurance through the Health Care Affordability Fund. This measure aims to assist residents above 400 percent of the federal poverty level who may lose enhanced federal premium tax credits after 2025. State officials are also given more authority to protect coverage if future federal actions limit Medicaid or marketplace insurance access. The estimated cost of this legislation is $17.3 million for the current fiscal year.
Senate Bill 1 transfers $50 million from the general fund to stabilize rural health care services at risk due to potential reductions or closures. Eligibility now extends beyond counties with populations under 100,000 to include providers in high-needs shortage areas and tribally operated facilities.
Senate Bill 2 permits metropolitan court judges to oversee criminal competency proceedings, reversing an earlier change that required all such cases be handled by district courts. This move is expected to ease administrative burdens on district courts and improve access to behavioral health services.

