T MINUS 1 AND COUNTING:
Second Session of the 57th Launches Tuesday!
Welcome!
On behalf of the Greater Albuquerque Chamber of Commerce, welcome to the 2026 legislative session. We’ll be hard at work advocating for legislation that will make New Mexico more competitive for jobs, for investment, for a better future. We’ll also stand firmly in opposition to those things that would strangle competitiveness and a robust economy. There’s a long way to go in tackling crime, improving public education, increasing availability of quality health care and building the infrastructure needed in this fast-paced modern economy. We look forward to the challenge and representing business before our state policy makers. Be sure to join us right here every day of the session for the latest developments in the Roundhouse. You can count on the Legislative RoundUp to keep you up to date on those things that matter most to the job creators in our state. Hang onto your hats, because this session …
MAYBE BUSIER THAN USUAL …
At noon on Tuesday, Jan. 20, the Legislature will convene a 30-day so-called “budget” session. Theoretically, a 30-day session is supposed to be mostly dedicated to passing a budget for the coming fiscal year, dealing with a few other fiscal matters and maybe some issues of urgency. Legislators cannot introduce legislation on other subjects UNLESS the governor places a bill or a subject matter “on the call.” This means the governor is in control of the legislative agenda and can broaden it (or not) as she sees fit. Roundhouse observers expect the agenda for this session to broaden considerably. Why?
First, this is Gov. Michelle Lujan Grisham’s last legislative session as she is precluded from reelection in 2026. Consequently, she will want to tie up loose ends and ensure her legacy as best as possible. Secondly, “the devil you know is better than the devil you don’t” maxum is in play. A new governor in 2027, along with many new legislators, creates a lot of uncertainty. Interested parties want to “get while the gettin’ is good,” i.e. try to move bills to the governor’s desk this year rather than take chances on next year’s unpredictability.
OUR CUP RUNNETH OVER …
A PLETHORA OF ISSUES
Plethora is such a cool sounding word — just rolls off the tongue. In any event, we’re likely going to have a lot of issues to deal with in this session. Here’s a thumbnail sketch of what we expect — we’ll have lot more to say on these issues as the session unfolds:
- The Budget — After years of rolling in dough thanks to the extraordinary performance of the oil and gas industry, tax revenue growth is beginning to slow down as the price per barrel of oil declines. That’s good for consumers at the gas pump but not so good for the state treasury. The total revenue is estimated to be about the same as last year at $13.4 billion, still some $2 billion above ongoing (recurring) state spending. This leaves quite a bit of money for one-time expenditures that don’t reoccur in the future. Spending money on fixing roads would be a good use of some of this money, for example. But so-called “new money,” i.e. money above and beyond last year’s revenues that won’t be spent on ongoing programs and services is estimated at “only” about $105 million. Last year, new money equaled $892 million. The governor’s proposed budget would increase spending by about 4.6% while the Legislature’s plan would increase spending by 2.5%. Free universal childcare expense is a major difference between the two.
- Good fiscal planning — is the good news. In anticipation of this turn of events (slower revenue growth), decisionmakers have wisely tucked a significant sum of money away in trust funds that will carry the state through any downturns in revenue. New Mexico is second only to Alaska in the amount it has available in trust funds — known as sovereign wealth. The state has a cool $67 billion that, through investments, grows, allowing some funds to be used to support state spending each year, serving both to keep taxes down and to fill in shortfalls if revenues decline significantly. What needs to be resisted are any attempts to raid the cookie jar for short-term spending to the detriment of long-term financial viability.
- Health Care — To say the least, New Mexicans are fed up with the inability to access quality health care. Doctors are fleeing the state and rural areas are critically affected. Reform of medical malpractice laws is top of mind as New Mexico statutes actually encourage filing lawsuits, in no small part, because the awards for punitive damages are sky high. Other actions requiring attention are help for health care professionals in repaying large student loan debts and tax incentives to practice in our state (other states do this and we need to be competitive). Moreover, the state needs to invest in enlarging University of New Mexico’s medical school so more doctors can be trained here, especially native New Mexicans who are most likely to remain in the state and serve our communities. The medical school is a fabulous resource for all of New Mexico. Look at it this way. If a young person goes to medical school at UNM, perhaps that person will return to practice medicine in his or her hometown. Many professionals do so.
- Public Safety — And the beat goes on. Session after session, the Legislature has refused to adopt tougher penalties for the most egregious offenders, especially repeat offenders. For example, punishment for felons carrying firearms desperately needs attention. And, of late, the fastest growing segment of violent crime is that committed by juveniles. Yet our laws are antiquated and not up to the task of dealing with current day armed gangs, drug runners and human traffickers, sadly often “staffed” by juveniles. High crime rates discourage job creating investments in our state.
- Public Education — Despite dramatically increased spending little progress has been made in improving student competency. One of the most critical factors limiting educational achievement is the inability of many students to read at grade level. States that have turned poor educational results around have tackled this problem by implementing new teaching methods known as “the science of reading.” New Mexico needs to follow the lead of these successful states. A lackluster educational system often discourages companies from locating in New Mexico thus stifling job growth.
- New Mexico Competitiveness — So, why are we facing a declining population? Answer: there aren’t enough good jobs. And, who creates jobs in New Mexico mostly? It’s small business that is the backbone of our economy. What hurts small businesses are things like costly regulations, gross receipts taxes that actually favor out of state companies, poor infrastructure (including good roads and internet service) and expensive, complicated proposed programs like zero emissions standards and paid family medical leave. Add high crime rates and a poor public education system and there’s no mystery why many companies don’t choose New Mexico as a place to do business and why so many of our young folks leave our state for better opportunities elsewhere.
- Housing — or the lack thereof is a large stumbling block in the way of recruiting workers to our state. If there aren’t affordable and available places to live, companies will go elsewhere. Construction of new multi-family housing is frustrated by property taxes that are not in line with fair market assessments. Significant reform or repeal of local ordinances that block new housing construction is needed. An example are ordinances that prohibit townhomes or duplexes in residential or mixed-use areas.
- Water — It’s not exactly a news flash — we live in a desert and water is precious. Uncertainty about water availability can also discourage economic growth. One promising solution is to vastly expand the use of the state’s tremendous supply of brackish water which can be converted to freshwater. The Strategic Water Supply Initiative is all about tapping into these reservoirs that contain nearly as much water as Lake Michigan and deserves consideration for additional funding.
WELCOME SENATOR REX WILSON
Since 2025 was not an election year, we have only one new member of the Legislature to introduce and that is Sen. Rex Wilson, who replaces former Republican Sen. Nicholas Paul, who resigned for personal reasons. Wilson is a Republican serving District 33 which includes all or portions of Chavez, Lincoln & Otero counties.
He is a former Lincoln County Commissioner — serving from 1997 to 2003 — and resides in Ancho. Wilson is a rancher and former southern region director for Presbyterian Medical Services, where he oversaw programs in Chaves, Lincoln and Otero counties. The New Mexico Cattle Growers Association named Wilson its 2017 Cattleman of the Year. To retain his seat in the Senate, Wilson would be required to run for election in November.
In future issues, we will review the leadership in both chambers for you. For now, typically the leadership that was in place in the first session of the 57th Legislature would carry over to the second session.
LOOKING AHEAD
At noon on Tuesday, Jan. 20, Governor Michelle Lujan Grisham will give her last state of the state address, revealing her priorities for this session. That, of course, will indicate the kinds of legislation she’ll put on the call. We’ll cover her presentation and provide a synopsis for you in tomorrow’s edition of the Legislative RoundUp. Before her speech in the morning, House Republicans will lay out their priorities for the session and in the afternoon, Senate Minority Leader Bill Sharer will respond to the governor’s speech and discuss his caucus’ priorities. We’ll also report this information as well.
In addition to the “speechifying,” the Legislature will get itself formally organized, the “feed bill” to cover session expenses might be acted upon by the House, legislation will be introduced and a lot of renewal of acquaintances will transpire in the hallways and offices. Given that we expect a very busy agenda, committee chairs will likely organize their committees fairly quickly and begin to hear legislation, possibly as early as Monday of next week. Both fiscal committees, House Appropriations and Senate Finance will be plowing through government agency funding requests with House Appropriations likely shooting to send a budget bill to the House floor by midsession. Negotiations with the governor to reconcile spending differences will be ongoing.
SIGNING OFF FROM SANTA FE
Thanks for joining us today. Before leaving you, here’s an interesting fact about our great state — there are 23 federally recognized native tribes (Pueblo, Navajo and Apache nations) and the Navajo language is used officially within the Navajo Nation. We’ll look forward to sharing all the news and views each day from your State Capitol. Until tomorrow, have a wonderful day.