LAS CRUCES, NM — New Mexico’s Consensus Revenue Estimating Group (CREG) is projecting $14.11 billion in General Fund revenue for fiscal year 2027, an increase of $485 million over the current year budget.

The estimate, announced at a meeting of the Legislative Finance Committee in Las Cruces on Tuesday, projects healthy FY26 reserves of $3.94 billion or 36.4% of recurring appropriations. The CREG also projects $390 million in additional revenue from FY25 that lawmakers may appropriate during a special session.

“New Mexico’s strong revenue projection announced in Las Cruces today is good news at a time when the federal government is ruthlessly slashing revenues that states have historically relied on,” said Gov. Michelle Lujan Grisham. “Today’s announcement that our state can expect nearly a half-billion dollars in additional revenue will help us protect the essential services for New Mexicans that Washington has abandoned.”

Today’s revenue estimate incorporates state economists’ projection that the Trump budget bill (H.R. 1) will reduce state revenue by approximately $206 million annually between FY26 and FY30. This reduction is driven by several provisions, including $41 million from standard deduction changes, $5 million from the elimination of tax on certain car loan interest, $70 million from lifting the SALT deduction limit, $44 million from federal business tax changes, and $46 million from other non–income tax impacts. Overall, the CREG anticipates that H.R. 1 will act as a drag on general fund growth during this period.

“Despite the external challenges New Mexico will face in the years ahead, our state has the resources to remain stable and on solid footing,” said DFA Sec. Wayne Propst. “Our healthy additional revenue provides the capacity for a special session, giving lawmakers the ability to address funding gaps in essential services that we’re already seeing.”

“New Mexico’s economy remains resilient despite challenges presented by federal actions. State policymakers have put New Mexico on a financial bedrock to endure for decades to come,” said Taxation and Revenue Sec. Stephanie Schardin Clarke.

The state’s CREG includes economists from the Departments of Finance and Administration, Taxation and Revenue, Transportation and the Legislative Finance Committee.