On September 30, Governor Michelle Lujan Grisham issued a proclamation convening a special session of the New Mexico State Legislature to convene at noon Wednesday, October 1, at the State Capitol Building in Santa Fe. The Governor is convening the 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.”
According to the Governor’s press release announcing the Special Session and its agenda, the governor’s call to action comes as New Mexicans face unprecedented challenges caused by massive reductions in federal support for critical programs including Medicaid, SNAP food assistance and public broadcasting services. The federal budget reconciliation bill signed into law by Trump on July 4 cuts taxes for the rich while slashing discretionary spending through 2034, with devastating consequences for New Mexico families and communities.
Governor Lujan Grsham said this in a statement:
“We’re not going to stand by while Washington abandons New Mexico families. … This special session is about protecting the people who need help most.”
Kari Armijo, the Cabinet Secretary for the New Mexico Health Care Authority, said this:
“While the new federal law brings significant changes, our focus is clear: protecting benefits and services for the 40 percent of New Mexicans who rely on our programs for health care and food assistance. … We’re committed to maintaining a strong safety net through these challenges.”
SPECIAL SESSION AGENDA
During the special session, lawmakers will consider only the following measures:
- RURAL HEALTH CARE DELIVERY FUND EXPANSION: Amending the Rural Health Care Delivery Fund to allow for grants to health care providers and facilities in high-needs geographic health professional shortage areas and stabilize the provision of existing health care services.
- HEALTH INSURANCE EXCHANGE ELIGIBILITY: Adjusting eligibility requirements for participating in the New Mexico health insurance exchange.
- VACCINE STANDARDS: Requiring rules for the immunization of children attending school or child care to be based on the recommendations of the New Mexico Department of Health, allowing the Department of Health to set vaccination standards for adults, and requiring vaccines purchased pursuant to the statewide vaccine purchasing program to be recommended by the Department of Health.
- FEDERAL BUDGET CUTS RESPONSE: Appropriating funds to respond to recent federal budget cuts.
- WESTERN NEW MEXICO UNIVERSITY BOARD OF REGENTS: Confirming regents to the Western New Mexico University Board of Regents.
- AMENDING COMPETENCY PROCEDURES: Amending competency laws to allow metropolitan courts to determine competency.
- BEHAVIORAL HEALTH LEGAL PROCEEDINGS: Appropriating funds to the Administrative Office of the Courts for a competency pilot program and behavioral health support for parties in legal proceedings.
- APPROPRIATION CONTINGENCY FUND: Transferring funds into the Appropriation Contingency Fund to ensure New Mexico has money set aside for emergency response.
- REGULATION AND LICENSING DEPARTMENT FUNDING: Appropriating funds to supplement the New Mexico Regulation and Licensing Department’s budget.
- INTERSTATE MEDICAL LICENSING COMPACT: Studying and preparing for the implementation of any interstate medical licensing compact.
- LEGISLATIVE EXPENSES: Appropriating funds for the expenses of the Fifty-Seventh Legislature, First Special Session, 2025.
HOUSE AND SENATE LEADERSHIP REACT
Both the New Mexico House and Senate Majority leadership have approved the Governor’s call for a Special Session and as well as the agenda.
Senate Majority Leader Peter Wirth said this in the Governor’s call statement:
“The cuts coming from Washington are not theoretical, they are happening now and will directly harm New Mexican families who are struggling to put food on the table or cannot afford healthcare. … This special session allows us to respond immediately to Washington’s dysfunction and take the first critical steps to protect our state’s progress.”
House Speaker Javier Martínez said this in the Governor’s call statement:
“Deep federal budget cuts and continued chaos in Washington, D. C. are making life harder and more expensive for New Mexicans now. But New Mexico’s leaders are ready for this fight, so we’re stepping up to address the most pressing issues facing families: skyrocketing healthcare premiums, seniors losing food benefits, and rural healthcare providers on the brink. … This special session is about making sure families across our state have access to the things they cannot live without.”
The October 1 special session will be the first called by Lujan Grisham since a July 2024 session focused on crime-related issues that ended with the Democratic-controlled Legislature adjourning without taking action on most of the governor’s proposed agenda. In an effort to avoid the same fate with the October 1 session, the Governor’s Office top staffers have been meeting with Democratic legislative leaders in recent weeks about a special session spending package that could exceed $400 million. That funding would come from nearly $3.5 billion in unspent money in state reserve funds, as state revenue levels have surged to record-high levels in recent years.
TRUMP’S “ONE BIG BEAUTIFUL BILL”
Trump’s “One Big Beautiful Bill” is in fact a large tax reduction package signed into law that trimmed close to $1 trillion from Medicaid, Medicare and subsidies from the Affordable Care Act and $230 billion from the Supplemental Nutrition Assistance Program, or SNAP, spending over the next 10 years to pay for the tax reductions. State health officials are warning that Trump’s “One Big Beautiful Bill” he signed in July could lead to more than 90,000 New Mexico residents losing health care coverage and the possible closure of rural hospitals.
New Mexico has one of the nation’s highest Medicaid enrollment rates where roughly 38% of state residents are enrolled. According to state executive and legislative branch economists the federal budget bill is projected to cost the state an average of $206 million per year over the next five years. U.S. Sen. Martin Heinrich, D-N.M., said last week that could eventually translate to $4 billion in annual spending shortfalls for the state. House Speaker Javier Martínez, D-Albuquerque, said some New Mexicans are set to face health insurance plan cost increases of up to 52% at the end of this year if lawmakers do not take action.
Links to relied upon or quoted news sources are here:
COMMENTARY AND ANALYSIS
On September 4 when Governor Lujan Grisham first made it know that she would call the legislature into Special Session on October 1, she made it clear the session would be confined to measures to deal with the severe budget cuts called for in Trump’s enacted “Big Beautiful Bill” and said the special session would primarily focus on federal cuts to programs such as Medicaid. While announcing the special session’s start date of October 1, the Governor’s Office confirmed that hot-button legislation dealing with crime would be deferred until the start of the 30-day regular session in January. Bills dealing with juvenile crime and firearm restrictions are expected to be delayed until next year’s 30-day session.
HOT BUTTON ISSUE ON SPECIAL SESSION AGENDA
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.
New Mexico trial lawyers over many years have aggressively opposed the compacts despite their adoption in over 40 other states. Trial lawyers and personal injury lawyers oppose a provision that prevents them from suing the interstate compact commissions, the board that would oversee the compact. Senate Majority Leader Peter Wirth, a highly respected Santa Fe trial attorney, has opposed the enactment of an interstate medical licensing compact in the past and has been severely criticized for it. He failed to keep the issues off the Special Session agenda to no avail and accepted as a compromise to studyi and prepare for the implementation of an interstate medical licensing compact. Senator Wirth has reversed his original opposition and issued the following statement:
” I do support the medical compacts. I think that’s priority number one, and we’re going to get that done in January and work hard between now and then to make it happen. But it’s just not ready to go at this point in the special session.”
FINAL COMMENTARY
It is absolutely clear from the Governor’s press release calling the October 1 Special Session and setting its agenda and the comments made by Senate Majority Leader Peter Wirth and New Mexico Speaker of the House Speaker Javier Martínez, a strong consensus has been reached on how to deal with the severe budget cuts and damage done by Trump’s “One Big Beautiful Bill” to New Mexico.
The October 1 special session is designed to find ways to offset the impact of federal funding cuts passed by Congress and approved by President Trump in July. The goal is to ensure initiatives like the rural health care delivery fund and food assistance programs can continue operating and make sure Medicaid recipients do not lose health coverage.
What Senate Majority Leader Peter Wirth and Speaker of the House Javier Martínez said about the Special Session when it was first announced is worth repeating.
Senate Majority Leader Peter Wirth said this:
“New Mexico cannot stand by while Washington’s reckless budget cuts inflict generational harm on families and communities across the state. …. A special session is essential to protect our rural healthcare providers, safeguard Medicaid coverage, and ensure that New Mexicans don’t bear the burden of federal failures.”
Speaker of the House Javier Martínez said this:
“New Mexico is not going to allow Trump and the radical right to take food off your table or kick your family off your healthcare plan. … We have been hard at work evaluating how this federal budget will impact New Mexico and how we can best fight back. Now, we’re ready to roll up our sleeves to protect access to the services you and your families need most.”
The Special Session is expected to be a brief but fast-paced special session that will last only a few days.