New Mexico subcommittee on federal funding cuts to continue through 2026

Citing sustained upheaval and cuts to federal programs, New Mexico lawmakers said this week they will maintain a subcommittee tracking impacts to the state and crafting the state’s response.

Lawmakers established the Federal Funding Stabilization Subcommittee last May in response to the loss of funds and threats of cuts from the Trump administration to programs that impact New Mexico at the highest per-capita rates in the U.S., including Medicaid and federal nutrition programs. The state Legislature ultimately approved more than $162 million in spending to replace or augment lost federal benefits.

Last year, the committee also heard presentations on tariffs, tribal healthcare, infrastructure and education.

The bipartisan subcommittee was authorized for one year, but lawmakers decided to extend its “incredibly important work,” state Rep. Patricia Lundstrom (D-Gallup), the subcommittee co-chair, said during its Santa Fe meeting on Friday.

For the remainder of the year, the body will expand its scope to include seeking additional federal funds; coordinating with tribal governments; and monitoring the federal budget and any court rulings or administrative changes that affect New Mexico’s business.

In the meeting, lawmakers suggested the subcommittee consider holding future presentations on efforts to hire laid-off or fired federal workers and the status of federal road projects in the state.

Lundstrom emphasized just because a state program loses federal funds doesn’t mean the state will compensate for the loss.

“We have to remember that as our findings are coming forth, we’re not necessarily recommending that our general fund become an automatic backfill,” Lundstrom said.

A final consideration for the 2027 legislative session, she said, is to determine if the subcommittee will need to become a permanent fixture, which would require action by the Legislature.