SANTA FE – Governor Michelle Lujan Grisham today delivered her eighth and final State of the State address, presenting legislative priorities for 2026 that include universal child care, health care access reform, public safety, improvements to the state K-12 education system, economic development and more.

“Over the past seven years, we’ve moved mountains together, delivering free childcare, free college, historic family income growth, expanded health care access and a clean energy economy worth billions,” said Governor Michelle Lujan Grisham. “But there’s still more work to do. We need to ensure universal child care for every New Mexico family for years to come. We need to get crime under control. We need more housing, better schools, and a health care system that works. Let’s finish strong and cement a legacy that lifts up every New Mexican.”

Specific proposals for the New Mexico Legislature’s 30-day session include:

Universal child care:

• $160 million recurring increase for universal child care to guarantee universal access to child care in New Mexico for years to come.

Education:

• Boosting literacy and math requirements to ensure that New Mexico’s students graduate with the skills needed to excel in work and life.
• A cell phone ban to keep kids focused at school.

Economic development:

• $150 million in tax credits to solidify New Mexico’s position as a national leader in investment for future-forward technologies like quantum and fusion energy.

Infrastructure:

• $1.5 billion transportation bonding package to fund major state-managed road projects and free up funds for local improvements.
• $110 million for new housing units and homelessness initiatives.
• Zoning reform to expedite and increase housing production.

Climate:

• Codify the Climate Action Plan to cut pollution 45% by 2030 and meet net-zero emissions goals by 2050.

Public safety:

• Juvenile justice reform to address severe teen crimes.
• Assault weapons ban and gun dealer accountability to fight gun violence.
• Strengthening penalties on felons in possession of firearms.

 

Health care:

• Medical malpractice reform to lower the cost of care and keep health care professionals in New Mexico while ensuring patient safety.
• Health care licensing compacts to ease staffing shortages, build a workforce pipeline and improve access for patients.
• Eliminating the gross receipts tax on medical services to keep care affordable.
• Building the University of New Mexico’s medical school to double enrollment and educate the next generation of health care workers.

 

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Governor Michelle Lujan Grisham’s 2026 State of the State Address
Santa Fe, New Mexico
Tuesday, January 20, 2026

I know what you’re thinking: Did she really just start her State of the State at Tia Sophia’s? Yes — yes, I did.
Why? Because that restaurant is New Mexico.

It’s a place where state employees sit next to artists who sit next to ranchers. It’s where you’d find the late Senator John Arthur Smith at 7 am during legislative sessions hashing out budget bills over breakfast burritos. And it’s where five governors from different parties can share a table—and nobody storms out.

No indignation. No name calling. No food fights.

All of us, Republican and Democrat, love New Mexico, and we’ve done our very best to move this state we love forward — together with all of you.

While the rest of our country is caught up in confusion, finger pointing and anger, we’re doing it differently in New Mexico — and serving as a blueprint for democracy that still works.

That’s not radical. That’s just New Mexico.

And it’s why, for seven years, I’ve known I have the best job in America.

So, Mr. Lieutenant Governor, Mr. Speaker, Madame Senate Pro Tem, members of the Legislature, members of the judiciary, tribal leaders – my fellow New Mexicans, my family, my husband, the First Manny. It is an honor for all of us, once again, to be here with you today.

Before I move on, I also want to make special mention of Stella Gabaldon, a treasured institution in the New Mexico Governor’s Office. Stella has now served six different governors over the past forty— that’s FOUR-ZERO — years. Stella is the first to arrive in our office every morning and the last to leave. She does an incredible job, and all New Mexicans owe her a big debt of gratitude. From here on out, she will be known as the official colonel Aide-de-Camp. How about a big round of applause for this amazing public servant?
Now, let’s talk about what we’ve accomplished together and what we have left to do.

Over the last seven years, New Mexico has shown what’s possible when we focus less on conflict and more on consequence. We’ve taken real action and delivered real results. And we’ve done it by moving together, all at once, on the biggest issues and opportunities facing our state.

That wasn’t by accident. It’s by design.

When I first ran for this office, I called for a new approach to governing. One that embraced every opportunity, took on every challenge, and delivered for every New Mexican. At a time when leadership is too often seen as a series of trade-offs – when people think you can only accomplish one priority by abandoning the rest or strengthen one community by selling out another – I believed — and I still do — we could do it all.

I believed we could be the childcare state. The jobs state. The energy state. The innovation state. And so, in my first inaugural address, just a mile down the road from where we are today, I made a promise. I said that in my administration, we would go big. Really big. Together.

We went big. We were bold. And together, we’ve made history.

The results we’ve delivered are turning heads across the country and, indeed, around the world. But what we’ve built over the last seven years isn’t just a list of accomplishments.

It’s a blueprint.

It’s a model for what leadership can look like, here in New Mexico and across the nation. And it’s rooted in a belief we’ve proved true: that you don’t solve big problems by narrowing your vision, but by expanding it to meet them all.

The story of the past seven years starts with the children who represent the future of our state.

When I took office, too many New Mexico families found childcare unaffordable, unavailable — or both. Today, building on the hard work of legislative leaders like Speaker Javier Martinez and Senator Michael Padilla, we’re ready to solve that problem once and for all with universal child care provided at no cost to all families across the state.

That should come as little surprise because New Mexico is the first state in America to make child care a right. Not an aspiration. Not a goal. A right – enshrined in our constitution, permanent and protected; approved by this legislature and affirmed by the people of the Great State of New Mexico.

And we didn’t just talk the talk. We made that right a reality, with new and expanded childcare centers; training and support for educators and staff; and resources to meet families where they live. We’ve made New Mexico first in the nation for childcare access – the best place in America to start a family and build a career, and the first state in the country to offer truly universal free childcare.

That’s infant and toddler programs. It’s before-school drop-offs and after-school support. From the day your child is born until they are 12 years old, New Mexico has you covered. No other state can say that; not one. And before anyone asks—yes, that includes the terrible twos. We’ve got you covered even then. You’re welcome.

But seriously, let’s talk about the reality of child care for New Mexicans like Kenny and Crystal Martinez. Kenny’s a firefighter paramedic, and Crystal is a registered emergency room nurse, and they’ve had to rely on alternating overtime shifts to make ends meet. They’ve got two young kids – but for years, they didn’t qualify for the assistance they needed because their combined income was just a poquito too high. That meant one parent staying home while the other was at work. That meant 12-hour shifts at work followed by long stretches caring for the baby solo. It was lonely, it was stressful – it’s just too hard.

On November 1, universal childcare changed everything for them. It meant Kenny and Crystal could do their essential work while both kids went to the same preschool. It meant they could spend time together as a family. It meant they could use their resources not just to barely make ends meet, but to give their kids the opportunities they dreamed about.

Now, there are thousands of stories just like it across New Mexico. Kenny, would you please stand — and thank you for sharing your story.

Angela Garcia grew up in the early childhood industry. Her mother opened an early learning center 25 years ago, and Angela — based in Las Cruces — has been CEO for the last 15. Today, she’s got 33 employees, and the wages of her education, care, and administrative staff have increased 200 percent since 2019. With the enhanced rate in universal childcare, she’s given everyone on her staff a raise – helping great caregivers to keep doing what they love. And now, she’s expanding her childcare centers, serving an additional 80 infants and toddlers to meet the new demand for care.

Angela, please stand. Thank you for what you’re doing for New Mexico and our children.

So more kids in high-quality care. More providers and childcare centers across the state. Training and support for childcare workers and educators. A Permanent Fund and Trust Fund that guarantee their impact. A constitutional amendment that etched our promise into law. We’re not just making progress; we’re building a system focused on child wellbeing; a foundation for a financially secure future; a legacy that New Mexico’s families can count on, and, again, a blueprint that the rest of America can and should follow.

We’re doing it all – and that’s why it works.

But it’s also crucial that we see it through. Since we announced universal child care in November, 10,000 additional kids are enrolled and being served. We were able to do this because you took a major step last year when you increased the annual distribution from the Early Childhood Trust Fund. Now, I’m asking for a $160 million dollar recurring increase for universal childcare to cement our legacy as a state of generational opportunity instead of a state with generational poverty.

We know this front-end approach works when we commit to it. In 2024, a UCLA research team studied the health and development of 18,000 New Mexico children entering kindergarten. They expected to see the weight of generations of challenges. Instead, they found children who were more resilient and better prepared than they anticipated – because early childhood education, family support, and early intervention were working together as a system.

That progress is beginning to carry forward.

Our investment in childcare means our kids will be better prepared when they start school. In fact, according to the UCLA study I just mentioned, more than 7o percent of New Mexico kindergartners are now on track in physical health and well-being, language and cognitive development, communication skills, general knowledge and more.

New Mexico kids are better prepared than ever to start school, and if they do struggle, we have new programs in place to help. Two years ago, under the leadership of Senate President Pro Tem Mimi Stewart and the Senate Finance Committee, we funded a new literacy institute and comprehensive science of reading programs in and outside of schools, including a six-week intensive tutoring program to eliminate the summer slide. Last year, it served 17,000 students, and led to an 8 percent jump in literacy proficiency leading into the school year.

With our Science of Reading program and Structured Literacy agenda, we used brain science and evidence-based methods to shape how we teach. We moved from uneven practices to proven approaches, because learning to read shouldn’t be left to chance or zip code.

And it’s working. Reading outcomes are improving statewide, especially among Native American students. Three years ago, just over a third of our elementary and middle school students could read at grade level. Now we’re at nearly half – and climbing. In 2024, nearly 80 percent of New Mexico high school students graduated on time – the highest rate in 15 years. This year, we’re striving to do even better by graduating 2,400 more students than last year and reaching the national 87 percent average graduation rate.
But let me be clear: education in New Mexico is not where it needs to be. We lose too many students in middle school because they can’t read fluently, struggle in math, and disengage long before anyone steps in.

That’s why we’re doubling down. I’m calling for clear, consistent literacy and math requirements so every student graduates with real skills. I’m calling for proven best practices in classrooms, a ban on cell phones that distract from learning, accountability that supports progress in our public schools, and an Office of Special Education so families don’t have to fight the system. I also firmly believe in the 180-day school year we know our kids need and that a majority of states now adhere to. As we follow evidence-based practices, this is an issue that deserves continued debate.

Our approach isn’t about troubleshooting around the edges. It’s about rebuilding our education system from top to bottom so fewer kids fall behind, more stay engaged and more gain the skills they need. Our students are exceptional and we owe them this. So, let’s do our part – and make sure every child gets the education they deserve.

Increasingly — and with tremendous benefit to our state — New Mexico’s young people are choosing to continue their education after graduating high school. Since 2021, college enrollment has grown by nearly 15 percent, making New Mexico one of only two states in the nation to see growth since 2020. Last year alone, we sent more than 40,000 students to college and trade schools through Opportunity Scholarships. We’ve jumped 20 spots in state higher education rankings in seven years – from 40th in 2019 to 20th today.

And I have more good news. When these students graduate from college or earn their certificates from trade or technical schools, we’ve got the strongest economy in history waiting for them.

Over the last seven years, we’ve added 150,000 jobs, including in rural communities. In the past year alone, Pacific Fusion announced a $1 billion investment in a research and development facility at Mesa Del Sol. XGS Energy announced a $1.2 billion dollar partnership to develop advanced geothermal energy in our state. And Quantum projects worth hundreds of millions of dollars have set up shop, including a $120 million dollar defense partnership with the federal government.

These jobs and investments didn’t just show up on their own. We’ve built an economic foundation strong enough to compete nationally – and then we went out and won the kind of investments other states only dream about.

And now we rank ninth in the nation for GDP growth, third in business applications, and first in the nation for family income growth. This isn’t a one-time thing. We’ve been hitting similar marks year after year after year.

New Mexico has also seen one of the largest drops in unemployment in the country, even as the national average has risen. We fully funded our pensions in 2019, making them solid for decades. In fact, New Mexico is one of the only states in the country where your pension is guaranteed. And we’ve transformed the State Investment Council’s venture capital approach to create an advanced technology ecosystem – one that’s attracting future-focused companies, jobs, and investments that will pay off for generations.

Construction, manufacturing, and entrepreneurship is booming; our sovereign wealth fund is one of the largest in the country and is projected to lead the country in the next decade; and we’ve earned a positive bond rating outlook from agencies that used to, frankly, just write us off.

In fact, just this month, Moody’s upgraded our rating to Aa1. Here’s what that means: It means we’ll have the best steak sauce in America.

Ok, just kidding — here’s what it really means. It means the people who measure risk for a living see our state as one of the smartest bets in the country. It means lower borrowing costs – so we can build roads, schools, and housing while saving taxpayers money. It means more investor activity, bringing funding and jobs to our state. It means that after years of being underestimated, New Mexico hasn’t just arrived – we’re leading the way.

Today, we’re one of the most financially sound states in the nation, with rock solid progress built on legacy industries and new innovations. New Mexico isn’t just a backdrop anymore – we’re a destination, with high-paying jobs that are securing our place for the future.

Now let’s make it permanent. I’m asking this legislature to approve $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. That’s why my budget request also includes a $1.5 billion road bonding package, $110 million for housing, and zoning reform to allow for durable, efficient housing production. And while mortgage rates remain stubbornly high, I’m also calling for an interest-rate buydown program to make mortgage payments more manageable for homeowners.

That’s how we’ll keep building a modern, thriving economy. That’s how we’ll keep attracting the jobs of tomorrow. And that’s how we’ll create a sustainable future – for our businesses, for our people, and for our state.

And at a moment when affordability is slipping out of reach for families across the country – when rent is rising, groceries cost more, and paychecks are stretched thin – New Mexico is one of the only states moving in the right direction.

We are consistently recognized as one of the more affordable states in America. Because we’ve built a system that lowers everyday costs, keeps bills affordable, and expands critical services.

Over the past seven years, we’ve reduced the gross receipts tax for the first time in 40 years, expanded rebates for low-income families, exempted Social Security and military retirement from income tax, created a child tax credit, and expanded the working families tax credit. Last year alone, our tax cuts saved New Mexicans nearly a billion dollars.

New Mexico also ranks among the top dozen most affordable states for housing in the country – a critical advantage when working families in states like California, Colorado, and Arizona are being priced out of homeownership entirely.

Don’t forget free child care. Free school lunches. Free college. And affordable health care. Families that are falling behind financially in other states can come to New Mexico and get ahead.

When it comes to climate policy, ours isn’t just an environmental priority – it’s a key part of our economic sustainability strategy. As part of our record economic gains, we’ve produced clean energy jobs at a faster clip than any other state in the nation. We’ve doubled our wind power capacity and now rank sixth nationally in solar power capacity.

Our Energy Transition Act brought in $10 billion in private investment and set aggressive clean energy goals that we are already on track to beat. We cut climate warming methane emissions in half compared to our neighboring states, and our rules became the federal standard.

New Mexico led, and the nation followed.

Then, when the Trump administration rolled the climate rules back we didn’t waver. We stuck to our principles and our strategy, and we sent a message to the world: New Mexico offers certainty, stability, and constant innovation – and businesses responded by flocking to our state. Our actions made clear that, amid national chaos, New Mexico is a state with staying power.

In New Mexico, we’ve proven that clean air, clean water and clean energy isn’t just good for the planet – it’s good for workers, good for families, good for paychecks. And now the rest of the country is rushing to catch up with us.

So let’s keep going. This year, I’m asking the legislature to codify our Climate Action Plan, which would cut climate pollution 45 percent by 2030 and get us to net-zero emissions – net-zero – by 2050.

I’m talking about reducing industry emissions, modernizing the grid, and expanding incentives for energy-efficient buildings. I’m talking about supporting agricultural practices that make farming more sustainable and crops more resilient. I’m talking about forest management strategies that protect our natural resources and prevent devastating fires.

But here’s the thing about building a clean energy future: we must make sure New Mexicans can afford it. We’ve seen what’s happened in other states – utility rates skyrocketing while families struggle to keep up. That’s why I’m calling for a blue-ribbon commission to develop a strategy to leverage and utilize private and public investments, grow our economy and protect consumers and businesses, while meeting exploding energy demands with more clean power.

Overall, I’m talking about an all-hands-on-deck, comprehensive effort to lead the nation and the world – to make our air cleaner, our water safer, our energy costs affordable and our communities more resilient.

And to prove that bold leadership gets results.

Nowhere is the need for bold, decisive leadership more clear than public safety.

Now, we’ve made some real progress and I thank the entire body for that. We’ve invested in security and police support. We’ve increased penalties for serious offenses, including everything from shooting threats to fentanyl trafficking. We’ve passed criminal competency reform to get dangerous people off the streets. We’ve promoted mental health reform, and blended evidence-based public health strategies with tough punishments.

But it’s not enough.

Until everyone feels safe – frankly, until everyone is safe – in their home, their workplace, their place of worship, their schools, their playgrounds and parks – we’re just not done. And any serious approach to public safety starts here: people who are committing dangerous, violent crimes must be held accountable – without hesitation, and without exception.

I’ve spent the last seven years pushing for more engagement on public safety; more common-sense solutions; and, frankly, more backbone. If anyone tells you we’ve done enough to rein in violent crime, ask them if they would say that to a family made smaller by violence. Would they say it to the parents trying to protect their kids? Would they say it to the children who have lost someone they love because we refused to keep dangerous criminals behind bars? I don’t think th

So, here’s what we need to do. We need to amend the juvenile code to address growing teen violence in our state and invest in the resources to make sure they don’t reoffend.

And we need to keep fighting the devastating scourge of gun violence with an assault weapons ban and gun dealer accountability. Nobody needs a body-shredding weapon for hunting or self-defense.

We also need a tougher law to punish felons in possession of firearms because gun violence is disproportionately perpetrated by repeat offenders – we must hold them accountable. And we need pretrial detention to keep suspects charged with violent crimes behind bars while they await trial, and protect our communities from violent predators who destroy lives, families and communities.

Finally, let’s talk about healthcare – because, as with public safety, we have done so much but it’s far from fixed. We’ve been stepping up to ensure New Mexicans have reliable health care at a time when the Trump administration is abandoning those who need it most.

We’re seeing this fight play out at the national level – arguments over who deserves care, and what kind of care you deserve. Here’s my take: Healthcare shouldn’t depend on who you are, where you live, or how much money you make. It’s not a luxury. It should be a fundamental right in America.

That’s why we’ve spent the last seven years building a healthcare system that works for New Mexicans – expanding Medicaid to cover more people, protecting reproductive rights, lowering prescription drug costs, and making sure rural communities have access to care.

When Republicans in Congress eliminated the Affordable Care Act subsidies, we raised the income caps in New Mexico leading to record enrollment in the Affordable Care Act plans. We’ve also covered tens of thousands of additional New Mexicans through the Patient Affordability Fund.

We invested more than $130 million in the Rural Health Care Delivery Fund because in rural America — and in rural New Mexico — because for far too long the only option was to get in your car or truck and drive a long way to see a doctor. And get this: it’s a model that Congress and the Trump administration are now embracing at the federal level. Now, I would have preferred they’d done it the New Mexico way, which is to not abandon rural America and not cut Medicaid and subsidies for everyday Americans who need that comprehensive support. But they obviously didn’t take my advice.

And when reproductive health access and funding were under attack by Republicans in Washington, we used our own money to ensure continuity of care and eliminated an outdated law criminalizing abortion in our state. We did it because it’s clear that women can’t rely on the federal government to protect their reproductive health.

We’ve done as much as possible to protect health care coverage; now we need to do more to expand health care access.
So, let’s build and endow the new UNM School of Medicine, allowing it to double enrollment and produce more doctors who can serve New Mexicans across every corner of our state. Let’s approve all the medical compacts, making it easier for out-of-state licensed providers to practice here. Let’s eliminate the gross receipts tax on medical services to make health care more accessible and affordable. And let’s enact real, meaningful medical malpractice reform in a way that protects patients, drives down insurance premiums for doctors and keeps them right here in New Mexico.

I want to thank Senate Majority Leader Peter Wirth for recognizing the urgency of three critically important issues that simply can’t wait. He’s leading an effort to fast track our road bonding package, medical licensing compact and our call for a modernized civil commitment law ,with the goal of passing them through the Senate in the first week of the session.

Let me tell you why the civil commitment bill is so important. Earlier this year, my office got a letter from Elizabeth, whose 42-year-old son is struggling with addiction and mental illness. She worries every day that he could critically injure himself or someone else. He’s living on the streets, sometimes beaten and bruised, and in and out of jail. She fears any day could be his last. And just as heartbreaking he could hurt somebody else.

The heartbreaking story of Elizabeth and her son is far too common and, in fact, we’ve heard thousands of these kinds of stories during my time in office. It’s the result of a system that confuses compassion with neglect. When someone is a danger to themselves or others because of mental illness, addiction — or far too often both — we need the legal tools to keep communities safe and get New Mexicans the help they need, and the respect they deserve. We must take action, instead of just watching and waiting for tragedy to strike. I know it’s an effort that requires courage, but now is time to muster that courage and meet the moment.

Before I close — because Stella says we all need to get back to work — I thought it would be fun to include a top 10 list of New Mexico achievements. So, here we go!

#1 in family income growth

#2 in solar energy potential

#6 in job growth

#1 in frito pie consumption per capita and slices of baloney consumed by the legislature

#1 in lowriders per capita

#9 in in GDP growth

#1 in sunsets that don’t need a filter

#1 in Zia tattoos

#1 shortest governor in America – some of you may say the meanest

And last but not least: #1 in child poverty reduction.

So, it’s clear we have a lot to be proud of. We may be a small state but you don’t have to be big to take on big challenges. We can — and should — go big. Really big. Together.

I’ve asked you to do some hard things over the past seven years, and we still have some pressing challenges ahead. So, as I close today, I want to ask you to do something easy:

Talk to each other.

Spend time together.

Go to Tia Sophia’s. Tomasita’s. The Pantry. The Shed. La Choza. Market Steer. Palace Prime. Pink Adobe. Plaza Cafe — wherever you like to share a meal.

Communicate. Listen. Disagree. And keep trying.

As I come to a close, let me be clear: this is not a victory lap and we’re not slowing down; we’re pushing forward. With one year left, there’s still work to do, and progress to make. Let’s double down and do it all.

Thank you, God bless you, and God bless New Mexico.