New Mexico governor signs bills to counter federal cuts, support health care and food assistance

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New Mexico Republican state Senate Minority Leader Bill Sharer of Farmington, N.M., speaks at the opening of a special legislative session in Santa Fe, N.M., Wednesday, Oct. 1, 2025. (AP Photo/Morgan Lee)

Democratic state House Speaker Javier Martínez, center back, of Albuquerque, N.M., takes his seat at the opening of a special legislative session about proposals to shore up safety net spending in response to President Donald Trump's recent cuts, Wednesday, Oct. 1, 2025. (AP Photo/Morgan Lee) — New Mexico Republican state Senate Minority Leader Bill Sharer of Farmington, N.M., speaks at the opening of a special legislative session in Santa Fe, N.M., Wednesday, Oct. 1, 2025. (AP Photo/Morgan Lee)

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9:37 PM on Friday, October 3

By MORGAN LEE

SANTA FE, N.M. (AP) — New Mexico Gov. Michelle Lujan Grisham signed a package of bills Friday aimed at shoring up food assistance, rural health care and public broadcasting in response to recently enacted federal cuts.

The new legislation responds to President Donald Trump's big bill as well as fear that health insurance rates will rise with the expiration of COVID-era subsidies to the Affordable Care Act exchange in New Mexico. Exchange subsidies are a major point of contention in the Washington budget standoff and related federal government shutdown.

New Mexico would set aside $17 million to backfill the federal credits if they are not renewed, under legislation signed by the governor.

The Democratic-led Legislature met on Wednesday and Thursday to approved $162 million in state spending on rural health care, food assistance, restocking food banks, public broadcast and more.

Starting this year, New Mexico expects to lose about $200 million annually because of new federal tax cuts. But the state still has a large budget surplus thanks to booming oil production.

“When federal support falls short, New Mexico steps up,” Lujan Grisham said in a statement.

Many federal health care changes under Trump's big bill don’t kick in until 2027 or later, and Democratic legislators in New Mexico acknowledged that their bills are only a temporary bandage.