New Mexico Invests $66 Million in Healthcare Authority Amid Federal Funding Cuts
In response to anticipated federal funding reductions and evolving qualification criteria for Medicaid and the Supplemental Nutrition Assistance Program (SNAP), New Mexico's recent special session allocated approximately $66 million to the state’s Health Care Authority (HCA). Officials emphasize that this is merely the initial step in a sustained financial effort.
Addressing Federal Funding Reductions
HCA Cabinet Secretary Kari Armijo highlighted the state's proactive approach, stating, "I think it’s a testament to New Mexico and the state we live in that we were able to come together and really come up with solutions for this time. I’ve heard that we’re the only state so far that has really taken action to prepare for these federal reductions." The funding aims to equip the HCA for forthcoming challenges and mitigate the impact of changes already underway.
Maintaining Key Benefits and Services
Thanks to House Bill 1, the HCA will sustain SNAP benefits for seniors and individuals with disabilities, as well as maintain enhanced premium subsidies for individuals purchasing insurance through Be Well's Marketplace. This funding is secured through at least June 2026.
- Maintain SNAP benefits for seniors and people with disabilities.
- Continue enhanced premium subsidies for many purchasing insurance.
- Ensure nutrition support continues for immigrants with lawful status.
Additionally, the HCA will implement essential staffing adjustments and bolster infrastructure support. The funds are also designated to continue nutrition support for immigrants with lawful status who are losing federal benefits. "We received some additional support to maintain SNAP benefits for individuals with a lawful immigration status, but who will be losing federal SNAP benefits, so we’ll be able to continue to support those folks," said Armijo.
Long-Term Financial Challenges
Despite addressing immediate needs, state leaders acknowledged the potential inadequacy of the funding to fully offset forthcoming losses. "The federal reconciliation bill is going to reduce federal payments to New Mexico’s health care providers, specifically hospitals, by $8.5 billion over the next decade," Armijo noted, emphasizing that this figure excludes cuts to food security programs. "So the state can’t fix or plug all of those holes, but we’re really trying to prepare for and minimize those impacts for New Mexico’s families," she added.
Republican Concerns and Compliance
Republican lawmakers had questioned whether the federal funding cuts qualified as an emergency, arguing that issues at the Children, Youth and Families Department (CYFD), rising juvenile crime, and unresolved medical malpractice reform should have been prioritized. However, Sec. Armijo emphasized the urgency of acting to ensure compliance with federal healthcare rules and avoid costly penalties. "If we waited until the 30-day session, and we didn’t get any budgetary resources or additional staff or any extra support, we would really not meet those federal deadlines. We would really be out of compliance and facing major compliance penalties from the federal government," she stated.
Looking Ahead
Armijo expressed gratitude to Governor Michelle Lujan Grisham and the legislature for supporting programs administered by the HCA, as the agency prepares for significant changes. During the upcoming 30-day session, lawmakers are expected to further examine measures to prevent New Mexicans from losing their health insurance.
