New Mexico
DemocratGovernor Michelle Lujan Grisham
Region: West
Governor Michelle Lujan Grisham addressed 14 policy topics in the 2026 State of the State address.
Governor Lujan Grisham called for boosting literacy and math requirements, implementing a cell phone ban in schools, and highlighted that nearly half of elementary and middle school students now read at grade level (up from just over a third three years ago). She celebrated a 15-year high graduation rate of 80%, college enrollment growth of nearly 15%, and proposed building a new UNM medical school to double enrollment. She proposed $160 million in recurring funding for universal child care.
Governor Lujan Grisham proposed comprehensive healthcare reforms including medical malpractice reform, healthcare licensing compacts, eliminating gross receipts tax on medical services, and building UNM's medical school to double enrollment. She highlighted the $130 million Rural Health Care Delivery Fund and noted the state covered additional New Mexicans through ACA plans after federal subsidy elimination. She also called for modernized civil commitment laws for those with mental illness and addiction.
Governor Lujan Grisham reported New Mexico ranks ninth nationally in GDP growth, third in business applications, and first in family income growth. She highlighted $150 million in proposed tax credits for next-generation technologies like quantum computing and fusion energy, alongside Pacific Fusion's $1 billion investment and XGS Energy's $1.2 billion geothermal partnership. She noted 150,000 jobs added during her tenure.
Governor Lujan Grisham proposed a $1.5 billion transportation bonding package to fund major state-managed road projects and free up funds for local improvements, along with $110 million for new housing units and homelessness initiatives. She emphasized zoning reform to expedite housing production and called for codifying the Climate Action Plan including grid modernization.
Governor Lujan Grisham called for juvenile justice reform to address severe teen crimes, an assault weapons ban, gun dealer accountability, strengthening penalties on felons possessing firearms, and pretrial detention for those charged with violent crimes. She acknowledged progress including increased penalties for fentanyl trafficking and criminal competency reform but stated emphatically that current efforts are insufficient.
Governor Lujan Grisham called for codifying the Climate Action Plan to cut pollution 45% by 2030 and reach net-zero by 2050. She highlighted $10 billion in private clean energy investment, doubled wind power capacity, and noted New Mexico ranks sixth nationally in solar. She proposed a blue-ribbon commission to leverage investments while protecting consumers and called for an all-hands-on-deck approach covering industry emissions, grid modernization, agricultural sustainability, and forest management.
Governor Lujan Grisham proposed $110 million for new housing units and homelessness initiatives, along with zoning reform to expedite and increase housing production. She also called for an interest-rate buydown program to make mortgage payments more manageable for homeowners, noting New Mexico ranks among the top dozen most affordable states for housing.
Governor Lujan Grisham highlighted nearly $1 billion in tax cuts in the prior year alone, including reducing the gross receipts tax for the first time in 40 years, expanding rebates for low-income families, creating a child tax credit, and exempting Social Security and military retirement from income tax. She proposed $150 million in tax credits for next-generation technologies like quantum computing and fusion, and called for eliminating the gross receipts tax on medical services.
Governor Lujan Grisham proposed $150 million in tax credits for next-generation technologies like quantum computing and fusion energy, citing Pacific Fusion's $1 billion investment, XGS Energy's $1.2 billion geothermal partnership, and a $120 million defense quantum partnership. She also called for a cell phone ban in schools, codification of the Climate Action Plan, and noted New Mexico's leadership in clean energy technology.
Governor Lujan Grisham's Climate Action Plan includes supporting agricultural practices that make farming more sustainable and crops more resilient, as well as forest management strategies. The broader economic development strategy emphasizes rural communities alongside urban centers.
Governor Lujan Grisham noted that New Mexico exempted military retirement from income tax as part of broader affordability efforts. Her address focused primarily on child care, education, public safety, and healthcare rather than veteran-specific initiatives.
Governor Lujan Grisham proposed zoning reform to expedite and increase housing production, codifying the Climate Action Plan, and a $1.5 billion transportation bonding package. She called for medical malpractice reform, health care licensing compacts, and eliminating gross receipts tax on medical services as structural reforms to improve health care access.
Governor Lujan Grisham requested a $160 million recurring increase for universal child care, building on New Mexico's status as the first state to constitutionally guarantee child care as a right. She noted 10,000 additional children enrolled since announcing universal childcare in November and highlighted that New Mexico offers free childcare from birth to age 12, free school lunches, and free college. She also proposed $110 million for housing units and homelessness initiatives.
Governor Lujan Grisham highlighted New Mexico as one of the more affordable states in America, citing nearly $1 billion in tax cuts in the last year alone including reduced gross receipts tax, expanded rebates, exempted Social Security and military retirement, and a child tax credit. She proposed eliminating gross receipts tax on medical services, a $1.5 billion transportation bonding package, $110 million for housing, zoning reform, and an interest-rate buydown program for homeowners.