New Mexico governor signs $162M package, sets $17M aside to backfill ACA subsidies after federal cuts
On Oct. 3, 2025, Gov. Michelle Lujan Grisham signed legislation approving $162 million in state spending to shore up rural health care, food assistance, restock food banks, public broadcasting and other programs, including a $17 million reserve to backfill Affordable Care Act exchange premium subsidies if federal subsidies lapse. The emergency package is meant to protect roughly 75,000 residents and offset an expected roughly $200 million annual hit from recent federal tax cuts in a state where about 38% rely on Medicaid and nearly one‑quarter receive SNAP.
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📌 Key Facts
- Governor Michelle Lujan Grisham signed bills on Oct. 3, 2025, approving a $162 million state spending package to counter recent federal cuts.
- The $162 million package funds rural health care, food assistance (including restocking food banks and distribution networks), public broadcasting and other programs.
- The package includes a $17 million set‑aside to backfill Affordable Care Act (ACA) exchange premium subsidies if federal subsidies are not renewed.
- New Mexico projects an expected loss of about $200 million annually because of recently enacted federal tax cuts.
- About 38% of New Mexico residents rely on Medicaid and nearly one‑fourth of residents receive SNAP benefits, underscoring the potential impact of federal reductions.
- Governor Lujan Grisham is urging state grants to stabilize rural clinics and hospitals and is seeking expanded ACA exchange subsidies to cover roughly 75,000 residents.
- Legislative leaders are moving to provide quick infusions of state money for SNAP, food banks and distribution networks; Speaker Javier Martínez noted some federal changes don’t take effect until 2027 but said urgent funds are needed now.
📚 Contextual Background
- Undocumented immigrants in the United States do not qualify for Medicaid and do not qualify for premium tax credits on the Affordable Care Act (ACA) exchanges as of 2025-10-03.
📰 Sources (3)
New Mexico governor signs bills to counter federal cuts
New information:
- Governor Michelle Lujan Grisham signed the bills on Oct. 3, 2025.
- The Legislature approved $162 million in state spending for rural health care, food assistance, restocking food banks, public broadcasting and other programs.
- New Mexico will set aside $17 million specifically to backfill Affordable Care Act exchange premium subsidies if federal subsidies are not renewed.
- State projects an expected loss of about $200 million annually from recently enacted federal tax cuts.
New Mexico Democrats rush to shore up safety net programs after federal cuts
New information:
- New Mexico expects to lose about $200 million annually because of the federal tax cuts.
- About 38% of New Mexico residents rely on Medicaid; nearly one‑fourth receive SNAP benefits.
- Governor Michelle Lujan Grisham is urging state grants to stabilize rural clinics and hospitals and seeking expanded ACA exchange subsidies for roughly 75,000 residents.
- Legislative leaders in New Mexico are considering a quick infusion of state money for SNAP, food banks and distribution networks.
- The article quotes Gov. Lujan Grisham and notes Speaker Javier Martínez acknowledging that some federal changes don't take effect until 2027 but saying urgent funds are needed now.