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New Mexico Legislature· HB 2h/cncrd SGND BY GOV (Mar. 11) Ch. 67 (partial veto).

GENERAL APPROPRIATION ACT OF 2026, the official text

Shown verbatim: the complete text as captured from the official page posted by the New Mexico Legislature, fetched 2026-08-23. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the introduced version. The official bill page.
HOUSE BILL 2

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Nathan P. Small and Meredith A. Dixon

AN ACT

MAKING GENERAL APPROPRIATIONS AND AUTHORIZING EXPENDITURES BY
STATE AGENCIES REQUIRED BY LAW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1. SHORT TITLE.--This act may be cited as the
"General Appropriation Act of 2026".

SECTION 2. DEFINITIONS.--As used in the General
Appropriation Act of 2026:

A. "agency" means an office, department, agency,
institution, board, bureau, commission, court, district
attorney, council or committee of state government;

B. "efficiency" means the measure of the degree to
which services are efficient and productive and is often
expressed in terms of dollars or time per unit of output;

C. "explanatory" means information that can help
users to understand reported performance measures and to
evaluate the significance of underlying factors that may have
affected the reported information;

D. "federal funds" means any payments by the United
States government to state governments or agencies except those
payments made in accordance with the federal Mineral Leasing
Act;

E. "general fund" means that fund created by
Section 6-4-2 NMSA 1978 and includes federal Mineral Leasing
Act receipts and those payments made in accordance with the
federal block grant and the federal Workforce Investment Act of
1998 but excludes the general fund operating reserve, the
appropriation contingency fund, the tax stabilization reserve
and any other fund, reserve or account from which general
appropriations are restricted by law;

F. "interagency transfers" means revenue, other
than internal service funds, legally transferred from one
agency to another;

G. "internal service funds" means:

(1) revenue transferred to an agency for the
financing of goods or services to another agency on a cost-reimbursement basis; and

(2) balances in agency internal service fund
accounts appropriated by the General Appropriation Act of 2026;

H. "other state funds" means:

(1) nonreverting balances in agency accounts,
other than in internal service funds accounts, appropriated by
the General Appropriation Act of 2026;

(2) all revenue available to agencies from
sources other than the general fund, internal service funds,
interagency transfers and federal funds; and

(3) all revenue, the use of which is
restricted by statute or agreement;

I. "outcome" means the measure of the actual impact
or public benefit of a program;

J. "output" means the measure of the volume of work
completed or the level of actual services or products delivered
by a program;

K. "performance measure" means a quantitative or
qualitative indicator used to assess a program;

L. "quality" means the measure of the quality of a
good or service produced and is often an indicator of the
timeliness, reliability or safety of services or products
produced by a program;

M. "revenue" means all money received by an agency
from sources external to that agency, net of refunds and other
correcting transactions, other than from issue of debt,
liquidation of investments or as agent or trustee for other
governmental entities or private persons; and

N. "target" means the expected level of performance
of a program's performance measures.

SECTION 3. GENERAL PROVISIONS.--

A. Amounts set out under column headings are
expressed in thousands of dollars.

B. Amounts set out under column headings are
appropriated from the source indicated by the column heading.
All amounts set out under the column heading "Internal Service
Funds/Interagency Transfers" are intergovernmental transfers
and do not represent a portion of total state government
appropriations. All information designated as "Total" or
"Subtotal" is provided for information, and amounts are not
appropriations.

C. Amounts set out in Section 4 of the General
Appropriation Act of 2026, or so much as may be necessary, are
appropriated from the indicated source for expenditure in
fiscal year 2027 for the objects expressed.

D. Unexpended balances in agency accounts remaining
at the end of fiscal year 2026 shall revert to the general fund
by October 1, 2026 unless otherwise indicated in the General
Appropriation Act of 2026 or otherwise provided by law.

E. Unexpended balances in agency accounts remaining
at the end of fiscal year 2027 shall revert to the general fund
by October 1, 2027 unless otherwise indicated in the General
Appropriation Act of 2026 or otherwise provided by law.

F. The state budget division of the department of
finance and administration shall monitor revenue received by
agencies from sources other than the general fund and shall
reduce the operating budget of any agency whose revenue from
such sources is not meeting projections. The state budget
division shall notify the legislative finance committee of any
operating budget reduced pursuant to this subsection.

G. Except as otherwise specifically stated in the
General Appropriation Act of 2026, appropriations are made in
that act for the expenditures of agencies and for other
purposes as required by existing law for fiscal year 2027. If
any other act of the second session of the fifty-seventh
legislature changes existing law with regard to the name or
responsibilities of an agency or the name or purpose of a fund
or distribution, the appropriation made in the General
Appropriation Act of 2026 shall be transferred from the agency,
fund or distribution to which an appropriation had been made as
required by existing law to the appropriate agency, fund or
distribution provided by the new law.

H. The department of finance and administration
shall regularly consult with the legislative finance committee
staff to compare fiscal year 2027 revenue collections with the
revenue estimate. If the analyses indicate that revenues and
transfers to the general fund are not expected to meet
appropriations, the department shall present a plan to the
legislative finance committee that outlines the methods by
which the administration proposes to address the deficit.

I. Pursuant to Sections 6-3-23 through 6-3-25 NMSA
1978, agencies whose revenue from state board of finance loans,
from revenue appropriated by other acts of the legislature or
from gifts, grants, donations, bequests, insurance settlements,
refunds or payments into revolving funds exceeds specifically
appropriated amounts may request budget increases from the
state budget division. If approved by the state budget
division, such money is appropriated.

J. Except for gasoline credit cards used solely for
operation of official vehicles, telephone credit cards used
solely for official business and procurement cards used as
authorized by Section 6-5-9.1 NMSA 1978, none of the
appropriations contained in the General Appropriation Act of
2026 may be expended for payment of agency-issued credit card
invoices.

K. For the purpose of administering the General
Appropriation Act of 2026, the state shall follow the modified
accrual basis of accounting for governmental funds in
accordance with the manual of model accounting practices issued
by the department of finance and administration.

SECTION 4. FISCAL YEAR 2027 APPROPRIATIONS.--

A. LEGISLATIVE.--Fifty-five million twenty-five
thousand seven hundred dollars ($55,025,700) from the general
fund is appropriated to the legislative council service for
allocation to legislative agencies in fiscal year 2027.

B. JUDICIAL.--Four hundred ninety-six million nine
hundred thirteen thousand one hundred dollars ($496,913,100)
from the general fund, thirty-one million five hundred
seventy-one thousand five hundred dollars ($31,571,500) from
other state funds, fifteen million nine hundred five thousand
four hundred dollars ($15,905,400) from internal service
funds/interagency transfers and five million four hundred
fifty-four thousand four hundred dollars ($5,454,400) from
federal funds is appropriated to the administrative office of
the courts for allocation to judicial agencies in fiscal year
2027.

C. GENERAL CONTROL.--Two hundred thirty-three
million three hundred sixteen thousand one hundred dollars
($233,316,100) from the general fund, one billion six hundred
sixty-five million seventy-six thousand seven hundred dollars
($1,665,076,700) from other state funds, two hundred million
six hundred thirty-five thousand five hundred dollars
($200,635,500) from internal services funds/interagency
transfers and twenty-nine million eight hundred eighty-four
thousand one hundred dollars ($29,884,100) from federal funds
is appropriated to the department of finance and administration
for allocation to general control agencies in fiscal year 2027.

D. COMMERCE AND INDUSTRY.--One hundred nineteen
million four hundred seventy-three thousand dollars
($119,473,000) from the general fund, two hundred twelve
million four hundred fifty-five thousand nine hundred dollars
($212,455,900) from other state funds, thirty-two million seven
hundred eighty-eight thousand five hundred dollars
($32,788,500) from internal service funds/interagency transfers
and two million six hundred eighty-six thousand seven hundred
dollars ($2,686,700) from federal funds is appropriated to the
department of finance and administration for allocation to
commerce and industry agencies in fiscal year 2027.

E. AGRICULTURE, ENERGY AND NATURAL RESOURCES.--One
hundred forty-three million six hundred forty-four thousand
four hundred dollars ($143,644,400) from the general fund, one
hundred forty-three million five hundred eighty-six thousand
three hundred dollars ($143,586,300) from other state funds,
twenty-seven million two hundred eighteen thousand four hundred
dollars ($27,218,400) from internal service funds/interagency
transfers and one hundred seventy-one million three hundred
eighty-two thousand five hundred dollars ($171,382,500) from
federal funds is appropriated to the department of finance and
administration for allocation to agriculture, energy and
natural resources agencies in fiscal year 2027.

F. HEALTH, HOSPITALS AND HUMAN SERVICES.--Three
billion three hundred twelve million one hundred ninety-five
thousand four hundred dollars ($3,312,195,400) from the general
fund, one billion four hundred seventy-six million eighty-seven
thousand nine hundred dollars ($1,476,087,900) from other state
funds, one billion six hundred thirty-six million four hundred
two thousand two hundred dollars ($1,636,402,200) from internal
service funds/interagency transfers and eleven billion four
hundred twenty-eight million nine hundred ninety-five thousand
seven hundred dollars ($11,428,995,700) from federal funds is
appropriated to the department of finance and administration
for allocation to health, hospitals and human services agencies
in fiscal year 2027.

G. PUBLIC SAFETY.--Six hundred fifteen million
thirty-nine thousand eight hundred dollars ($615,039,800) from
the general fund, one hundred ninety-eight million seven
hundred fifty-four thousand nine hundred dollars ($198,754,900)
from other state funds, thirty million seven hundred ninety-three thousand seven hundred dollars ($30,793,700) from
internal service funds/interagency transfers and ninety-two
million four hundred ninety-five thousand eight hundred dollars
($92,495,800) from federal funds is appropriated to the
department of finance and administration for allocation to
public safety agencies in fiscal year 2027.

H. TRANSPORTATION.--Six hundred eighty-one million
three hundred eighty-three thousand dollars ($681,383,000) from
other state funds, nine million dollars ($9,000,000) from
internal service funds/interagency transfers and five hundred
ninety million forty-six thousand dollars ($590,046,000) from
federal funds is appropriated to the department of finance and
administration for allocation to transportation agencies in
fiscal year 2027.

I. OTHER EDUCATION.--One hundred four million
eighty-eight thousand two hundred dollars ($104,088,200) from
the general fund, nine million one hundred eighty-eight
thousand one hundred dollars ($9,188,100) from other state
funds, nine million three hundred twenty-four thousand three
hundred dollars ($9,324,300) from internal service funds/
interagency transfers and thirty-four million nine hundred two
thousand six hundred dollars ($34,902,600) from federal funds
is appropriated to the department of finance and administration
for allocation to other education agencies in fiscal year 2027.

J. HIGHER EDUCATION.--One billion four hundred
eighty million nine hundred sixty-one thousand four hundred
dollars ($1,480,961,400) from the general fund, two billion two
hundred fifty-nine million two hundred forty-four thousand five
hundred dollars ($2,259,244,500) from other state funds,
seventy-eight million eight hundred eighty-three thousand three
hundred dollars ($78,883,300) from internal service funds/
interagency transfers and nine hundred fifty-six million two
hundred thirty-six thousand four hundred dollars ($956,236,400)
from federal funds is appropriated to the higher education
department for expenditure or allocation to higher education
agencies in fiscal year 2027.

K. PUBLIC SCHOOL SUPPORT.--Four billion six hundred
ninety-two million three hundred twenty-six thousand five
hundred dollars ($4,692,326,500) from the general fund, fifteen
million five hundred thousand dollars ($15,500,000) from other
state funds and five hundred seventy-nine million five hundred
thousand dollars ($579,500,000) from federal funds is
appropriated to the public education department for expenditure
or allocation to public school districts and charter schools in
fiscal year 2027.

SECTION 5. FUND TRANSFERS.--Notwithstanding the
provisions of Sections 6-4-9 and 6-4-11 NMSA 1978 or other
substantive law, the department of finance and administration
shall transfer an amount from the tobacco settlement permanent
fund to the tobacco settlement program fund equal to the
difference between appropriations in Section 4 of the General
Appropriation Act of 2026 made from the tobacco settlement
program fund and the amount transferred to the tobacco
settlement program fund pursuant to Subsection B of Section
6-4-9 NMSA 1978 in fiscal year 2027 to fully fund
appropriations made from the tobacco settlement program fund
contained in Section 4 of the General Appropriation Act of
2026.

SECTION 6. SEVERABILITY.--If any part or application of
this act is held invalid, the remainder or its application to
other situations or persons shall not be affected.
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