Technically, the state’s even-year, 30-day Legislative sessions are supposed to only be about the budget, but this is Gov. Michelle Lujan Grisham’s last regular session and she still has a lot to do — not to mention all 70 State House seats are up for election this year.
So, in addition to carving up an $11 billion state budget, there’s plenty more to fight over. The only catch: in a budget session, the governor must specifically authorize non-budget items to the agenda.
Here’s a quick preview of the issues most likely to keep everyone’s attention this session, which started Tuesday, Jan. 20 at noon.
Medical malpractice reform
Lujan Grisham has signaled that she will add some type of medical malpractice accountability reform to the 30-day budget session, but it is not clear yet how narrowly she will restrict options for reform.
Juries have awarded several large punitive damage verdicts against hospitals and medical providers in cases involving neglect, injury and death in egregious cases. Hospitals, in return, have launched several high-dollar campaigns blaming attorneys and seeking to cap those damages in line with similar caps on actual damages those groups secured in a legislative compromise in 2023.
As reported in the New Mexico Political Report in October, experts testifying before a legislative committee reported that New Mexico has the highest proportion of hospitals and nursing homes owned by for-profit private equity companies in the country, with 36% of hospitals and more than 35% of nursing homes owned by private equity. National data shows that private equity-owned facilities have a 25% higher rate of hospital-acquired incidents and higher mortality rates than locally-owned or nonprofit competitors.
This legislative session, watch for proposals to cap punitive damages or compromises balancing caps with mandates for facilities to meet minimum staffing and care requirements for patient care.

Solving the healthcare access crisis
Legislators have already introduced several bills designed to expand access to healthcare providers, including a few with bipartisan sponsors.
State Rep. Joseph Sanchez (D-Alcalde) and others have legislation to expand student loan forgiveness for doctors who agree to practice in underserved areas in the state.
Watch the governor’s opening State of the State address for clues to which of these, or others, may have momentum to become law.
Funding for universal early childhood education and childcare
Last year, New Mexico became the first state in the country to offer universal free childcare and early childhood education. Those programs are partially funded by new trust funds voters created with a 2022 Constitutional amendment diverting 1.25% of the state’s oil and gas-funded permanent funds, but some legislators, mostly Republicans, have argued that those funds are subject to swings in the oil and gas market. Even then, the programs’ estimated $660 million annual costs are not fully funded in future years, meaning the next governor and future legislators will be on the hook for funding or cuts.
Additionally, the state does not have enough early childhood education or childcare workers, particularly in rural areas, and some providers have said the state’s funding formula does not cover all of the costs.
Proponents say this is a long-overdue investment in children to prepare them for school and support parents struggling to balance work and family care obligations.
Watch for legislators to battle over adding more funding to the programs for worker training and increasing the corpus in the funds. Whatever they decide, it will be up to the next governor’s administration to see these programs through unless a future legislature pulls back on funding.
Firearms
Gun safety advocates see this session as their last chance to make headway with a supportive governor on legislation relating to firearms and juveniles, domestic violence and repeat offenders.
Opposition from sheriffs and court challenges has minimized or delayed the impact of previous bills on this topic, including waiting lists for gun buyers and removing firearms from persons a court deems dangerous.
Read New Mexico Political Report tomorrow for more on the competing bills to watch – if the governor decides to add this hot-button issue to the short budget session.
Immigration
The governor waved off legislation for a special session last summer that would have prohibited local governments from contracting with ICE detention centers. But timing is everything and public pressure is ramping up to enact this bill now. Don’t look for any Republican support if it passes.
