There is no doubt that the two most defining issues of the 2026 New Mexico legislative session are House Bill 99, the Medical Malpractice Reform Bill and Senate Bill 241, the Universal Child Care bill. With a mere six days remaining before the end of the 2026 New Mexico Legislature on February 19, both bills are slowly advancing and both becoming law remain in serious doubt.
SENATE BILL 241 (UNIVERSAL CHILD CARE)
On February 12, Senate Bill 241 (SB 241) authorizing Universal Child Care statewide passed the New Mexico Senate on a 25-15 vote after several hours of debate. Under SB 241 as passed, up to $1 billion would be taken from an oil-fueled state trust fund to finance Gov. Michelle Lujan Grisham’s universal child care initiative over the next five years. SB 241 now advances to the House with six days left in this year’s 30-day legislative session.
Universal child care exists now after being implemented by Gov. Michelle Lujan Grisham with a governor’s Executive Order. New Mexico became the first state to offer state-subsidized child care for all working families when Governor Lujan Grisham announced the program in September.
Lawmakers initially balked at the Lujan Grisham administration’s request for an additional $160 million in the coming year to pay for the universal child care initiative. The approval of SB 241 by the Senate Education Committee signaled a growing embrace of the program by the legislature along with more than $60 million in state funds earmarked in a separate budget bill.
Lawmakers have already appropriated funding to provide no-cost childcare to 32,000 children last year. According to a legislative analysis of Senate Bill 241 bill, that number is projected to increase to 58,000 children by the 2029 budget year under the universal child care program. In addition, roughly 10,000 more New Mexico children have enrolled in the state’s childcare assistance program since universal childcare took effect in November.
Senate Bill 241 contains certain “triggers” that would allow co-pays to be charged to higher-income families and childcare wait lists to be implemented. Those steps would be triggered under certain economic situations, such as elevated inflation rates and a downturn in oil prices. The co-pays would only apply to working families, making more than 600% of the federal poverty level. That amount is currently $198,000 per year for a family of four.
The built-in “triggers” to Senate Bill 241 are as follows:
- Allowing co-pays for higher-income families and child care wait lists.
- A state early childhood agency would be required to take certain steps if any of four different conditions occur.
- Those conditions are higher-than-expected child care enrollment, less than $50 per barrel oil prices, higher than 3% inflation and state revenue growth lagging behind inflation.
- Under any of those scenarios, the agency would either have to enact a waiting list or charge co-pays for working families making more than 600% of the federal poverty level. That amount is currently $198,000 per year for a family of four.
Senate Bill 241 codifies the state’s universal child care program, which state officials acknowledge will require roughly 5,000 additional early childhood workers in order to meet statewide demand. It was modified in a Senate committee to include a steady funding source to pay for universal childcare at least through 2031.
Senate Bill 241 would allow up to $1 billion to be diverted from an early childhood trust fund that was created in 2020 and will provide a steady funding source to pay for universal childcare at least through 2031. The fund has seen its value skyrocket over the last several years going from $300 million to nearly $11 billion at the start of this year. The increase was the result of record-high oil production levels in southeast New Mexico.
Past research by Legislative Finance Committee analysts has found that state-provided childcare has led to increased wages for parents, but has not found it improves educational outcomes for children.
Senate Bill 241 codifies in state law eligibility and application requirements for the universal childcare program.
One Republican, Sen. Gabriel Ramos of Silver City, joined Democrats in voting in favor of the measure, while other GOP senators voted in opposition.
Sen. George Muñoz, D-Gallup, the bill’s sponsor, said the plan would increase economic opportunity for working families in New Mexico, which has long struggled with high poverty rates, while still providing financial safeguards. Muñoz said this:
“We live in an era of working families, where both partners in a marriage have to work ”
REPUBLICANS EXPRESS CONCERN
During Senate floor debate, Republicans expressed major concern over the cost of the program which is estimated to be $160 million in the coming budget year as well as over future sustainability given an uncertain economic outlook.
Sen. Nicole Tobiassen, R-Albuquerque, described universal child care as a “behemoth program” while also raising questions about future revenue volatility.
GOP senator, Craig Brandt of Rio Rancho, sought to rewrite the bill by providing families with a stay-at-home parent or legal guardian up to $10,000 per child. Brandt said this:
“What we know is when a child is raised by the parents, the child does better throughout their lifetime.”
Senator Brandt’s attempt was rebuffed by the Senate’s Democratic majority, with Muñoz saying it could lead to fraud and misuse of taxpayer dollars. That prompted a pointed retort from Senate Minority Leader William Sharer, R-Farmington, who said universal child care could itself lead to rampant fraud in New Mexico. He compared the program to Minnesota’s child care system that has come under intense scrutiny in recent months.
Backers of Senate Bill 241 said the legislation would build off the state’s recent efforts to create a cradle-to-career pathway, while also making New Mexico a more attractive state for working families. Senate Majority Whip Michael Padilla, D-Albuquerque said this:
“This is just the next natural step for what we’re trying to accomplish.”
GOVERNOR REACTS
After the full Senate vote, Governor Michelle Lujan Grisham described the vote as a “historic step” toward ensuring all families have access to affordable, quality child care. The Governor said this in a statement:
“For too long, parents have been forced to choose between their careers and caring for their children, and businesses have struggled to keep workers because families can’t find reliable care.”
Governor Michelle Lujan Grisham also said universal child care would bolster the state’s economy, which posted the nation’s 12th-highest rate of job growth in 2025, according to the U.S. Bureau of Labor Statistics.
Links to relied upon or quoted news sources are here:
MEDICAL MALPRACTICE REFORM BILL MOVES TO HOUSE FLOOR
On Wednesday February 11, the House Judiciary Committee voted unanimously 10-0 to advance a substitute version of House Bill 99, filed by Rep. Christine Chandler, D-Los Alamos. Chandler for her part described the substitute bill as a compromise that emerged after talks broke down between hospitals, physician groups, trial attorneys and other stakeholders.
The major sticking point is how to limit punitive damages that are sometimes awarded in cases of reckless or willful misconduct for the state’s largest corporate hospitals. Chandler told the House Judiciary Committee, which she chairs, this about substitute House Bill 99:
“There was a lot of discussion about what the cap should be for the larger systems and the like, and there were conversations between the hospitals and the lawyers as to what that should be. This bill sort of splits the difference.”
Chandler told her committee that she drafted the substitute bill in consultation with Gov. Michelle Lujan Grisham, who supports House Bill 99. Chandler said the substitute bill would create a multitiered cap on punitive damages that varies according to the type and size of a medical clinic or hospital. She estimated the bill would cap punitive damages at about $1 million for independent physicians and clinics, $6 million for locally owned hospitals and $15 million for larger corporate-owned hospitals. All the caps would increase in tandem with the consumer price index.
The committee’s unanimous approval of the substitute bill also killed an amendment introduced last month by Rep. Liz Thomson, D-Albuquerque, that would have left unlimited punitive damages on larger corporate-owned hospitals while limiting damages for five smaller hospitals in the state. That amendment drew opposition from hospital and physician groups.
New Mexico currently has no limits on punitive damages, which has resulted in sizable damage awards against hospitals in recent years. Supporters of the caps say fear of punitive damages has driven up medical malpractice insurance premiums and discouraged physicians from practicing in New Mexico.
It is unclear if limits on punitive damages will result in lower medical malpractice insurance premiums. It was on February 6 that Representative Chandler told members of the Judiciary Committee she was “very skeptical” that insurance costs for physicians and hospitals would decrease if the bill becomes law. Chandler said the bill would allow hospitals, doctors and insurance companies to plan for risk because they would know what the maximum awards would be, except for uncapped medical expenses.
SUPPORT EXPRESSED
The New Mexico Hospital Association expressed support for the new substitute version of HB 99. Troy Clark, CEO of the New Mexico Hospital Association, said the lower $6 million cap on punitive damages likely will apply to five New Mexico hospitals, including Cibola General Hospital in Grants, Holy Cross Medical Center in Taos, Rehoboth McKinley Christian Hospital in Gallup and San Juan Regional Medical Center in Farmington. Clark said The higher $15 million caps would apply to more than 30 hospitals statewide, including five Presbyterian Healthcare System hospitals and five Lovelace hospitals. Clark also said the he higher cap would apply to 11 post-acute hospitals, which are rehabilitation or behavioral health facilities.
Troy Clark told the committee this:
“We’ve been pushing for lower caps, obviously. … [The $15 million cap is] kind of at the threshold of what the hospitals felt still made a meaningful difference in our ability to recruit and retain physicians. We still feel this is a meaningful bill to address the situation of our access-to-care crisis.”
SKEPTISM EXPRESSED
New Mexico House Speaker Javier Martínez, D-Albuquerque voted for the substitute bill. However he said he is skeptical that limiting punitive damages will solve New Mexico’s physician shortage. Speaker Martinez said this:
“I am a little disappointed that (in) 2026 here we are looking for another solution to a problem that I think goes a lot deeper than medical malpractice. … I think that so much of that horror story goes well beyond this issue. I really hope that in 2029 we’re not in the same situation trying to fix something again.”
The New Mexico Trial Lawyers Association is a group that consistently over the years has opposed medical malpractice reform efforts, expressed disappointment with the substitute bill. Albuquerque trial attorney Cid Lopez, who has represented victims and families in medical malpractice cases, said this:
“We went into the session being told this was about protecting doctors, and then they pivoted and the big corporations said ‘no deal unless we get the same protections. … [The bill as written] really takes away the power of juries to hold those big corporations fully accountable.”
https://www.abqjournal.com/news/medical-malpractice-bill-advances-to-house-floor/2979581
HOUSE VOTES 66 TO 3 TO APPROVE HOUSE BILL 99
On Saturday, February 14, the New Mexico House voted overwhelmingly 66 to 3 to approve House Bill 99. The bill drew support from both Republicans and Democrats alike in a debate that only lasted about 20 minutes. Previous committee hearings on the bill had stretched for hours.
House Minority Leader Gail Armstrong, R-Magdalena, said the legislation wasn’t perfect but is still “much, much better” than current medical malpractice law. Rep. Christine Chandler, D-Los Alamos, the bill’s lead sponsor said this: “This is a reasonable compromise that will help us assure our doctors that they’re valued here and bring new providers. “ The only three “no” votes were cast by Reps. Janelle Anyanonu of Albuquerque, Angelica Rubio of Las Cruces and Patricia Roybal Caballero of Albuquerque. All three are Democrats.
HB 99 now advances to the Senate where its fate is far from certain despite the decisive vote in the House. Before a full Senate vote, the measure must win approval in the Senate Judiciary Committee. Sen. Joseph Cervantes, D-Las Cruces, the committee’s chairman, said his committee would likely hold a hearing on the measure early next week.
Govrnor Lujan Grisham said she expect the Senate to expedite consideration of the House-approved bill and said this in a statement: .
“With this bill, we’re not choosing between patients and providers — we’re choosing both. … [The bill] protects patients who have been harmed by medical malpractice while making it possible for physicians to practice here without fear of bankruptcy.”
The link to the relied upon or quoted news source is here:
https://www.kob.com/politics-news/new-mexico-politics/medical-malpractice-bill-heads-to-senate/
https://www.koat.com/article/house-bill-99-medical-malpractice-reform-passes-the-house/70363826
COMMENTARY AND ANALYSIS
There is no doubt that the two most defining issues of the 2026 New Mexico legislative session are medical malpractice reform and free universal childcare to New Mexico families, regardless of income. If enacted, both measures will be the final defining and enduring legacy of Governor Michell Lujan Grisham.
With only six days remaining before the 2026 Legislative session ends on February 19, both bills becoming law remain in serious doubt. If one or both fail to get enacted by the legislature, you can expect Governor Lujan Grisham will call yet another Special Session to get passage before her term ends on January 1, 2027, when the new Governor is sworn in.
Such is the fate of a lame duck Governor who cannot influence enough votes from her own party to get legislation she wants passed.