In a large effort to meet the demand for more affordable housing, along with increased infrastructure improvements, New Mexico Governor Michelle Lujan Grisham is tasking lawmakers to pass what may amount to an $11 billion budget.
In opening remarks to the winter 2026 session, the Governor urged passage of up to $1.5 billion as part of a bond package to pay for both state-managed road projects as well as local road and street improvements. Lujan Grisham also wants to see passage of some $110 million to fund the construction of new housing units.
The Governor tied in the need for infrastructure improvement and hew housing with the larger economy, noting that she additionally wants lawmakers to give a green light to some $150 million in tax credits for “next generation technologies like quantum computing and fusion, to help cement New Mexico’s place as the home of America’s most innovative industries.”
“All these good new jobs mean we need to upgrade our infrastructure and bolster our housing supply,” she said, also specifically calling for zoning reform to “allow for durable, efficient housing production.”
Referencing what is officially called the Climate Action Plan, a state initiative designed to cut climate pollution by around 45% by the end of the decade, with the ultimate goal of seeing New Mexico becoming a net-zero emissions state by 2050, Lujan Grisham said she was pushing for “reducing industry emissions, modernizing the grid, and expanding incentives for energy-efficient buildings.”
The Governor said she would also like to see members of the legislature give their approval to as much as $150 million in tax credits to be used for the development of “future-forward technologies” such as quantum and fusion energy.
The address marks the final time Lujan-Grisham, who was elected in 2018 – but ineligible to run for a third term this year – will deliver a State of the State speech.
The legislature is scheduled to wrap up its current session at noon on February 19.
January 22, 2026
By Garry Boulard
