NM House Finance Chair: Rural Needs 'Integrated' in State Budget

Committee members say rural investments in water, agriculture, and healthcare are priorities in $11.1 billion budget proposal.

Published on Feb. 7, 2026

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The New Mexico House Appropriations and Finance Committee held a news conference to discuss the state's $11.1 billion budget proposal, which has already passed the House. Committee members, led by Chairman Rep. Nathan Small, said rural needs were a top priority, with planned investments in water, agriculture, livestock, economic growth, and healthcare access. The budget includes a 2.7% increase in recurring funds from last year and aims to manage the state's finances amid economic uncertainty. The bill now awaits Senate approval with around two weeks left in the legislative session.

Why it matters

New Mexico's rural communities have long faced challenges with water scarcity, healthcare access, and economic opportunities. This budget proposal seeks to address those needs through targeted investments, reflecting a shift towards more integrated state spending that considers the unique circumstances of rural areas.

The details

The budget proposal includes funding increases for water, agriculture, livestock, and economic diversification programs to support rural New Mexico. It also doubles the size of the University of New Mexico School of Medicine to help recruit and retain healthcare professionals, especially in underserved rural communities. Some Republican lawmakers proposed failed amendments to allocate funding for potential losses from the closure of immigrant detention centers within the state.

  • The House Appropriations and Finance Committee held a news conference on Wednesday, February 8, 2026.
  • The $11.1 billion budget bill passed the House by a 55-15 vote on the same day.
  • The bill now awaits Senate approval, with around two weeks left in the 30-day legislative session.

The players

Rep. Nathan Small

A Las Cruces Democrat and the chairman of the New Mexico House Appropriations and Finance Committee.

Rep. Meredith Dixon

A Democrat from Bernalillo and the vice chair of the New Mexico House Appropriations and Finance Committee.

New Mexico Groundwater Alliance

A group that released the New Mexico 360 Groundwater Report, which detailed the state's increasingly low aquifer levels due to drought and data center water usage.

University of New Mexico School of Medicine

The medical school that will double in size under the new budget proposal, which will also raise pay for residents and fellows and offer down payment assistance to incentivize graduates to practice in rural communities.

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What they’re saying

“At each stop, it's been about listening to New Mexicans to understand the challenges they face and the opportunities we have together.”

— Rep. Nathan Small, Chairman, New Mexico House Appropriations and Finance Committee (scdailypress.com)

“We know that access to affordable, quality health care is top of mind for New Mexicans, and it's a top priority in our budget this year.”

— Rep. Meredith Dixon, Vice Chair, New Mexico House Appropriations and Finance Committee (scdailypress.com)

What’s next

With around two weeks left in the 30-day legislative session, the budget bill now awaits approval from the New Mexico Senate.

The takeaway

This budget proposal represents a concerted effort by New Mexico lawmakers to better integrate the needs of rural communities into the state's spending priorities, addressing long-standing challenges around water, healthcare, and economic opportunities. The proposed investments signal a shift towards more holistic and equitable state-level policymaking.