SANTA FE – Gov. Michelle Lujan Grisham on Tuesday delivered her seventh State of the State address, laying out 2025 legislative priorities for 2025 that include public safety, affordable housing, child welfare, health care, economic development and more.

“Working with the legislature over the past six years, we’ve achieved so much in New Mexico from reducing child poverty, to ensuring free college for every New Mexican to adding a record number of jobs and strengthening health care and environmental protections,” Lujan Grisham said. “Of course, there is still more to do. That’s why I’m proposing new initiatives to tackle our crime problem, expand affordable housing, protect at-risk children, improve our health care system and more. I look forward to working with lawmakers over the next 60 days to create an even better New Mexico.”

Some of the governor’s specific proposals for the New Mexico Legislature’s 60-day session include:

Public safety:

• Updates to criminal competency laws to ensure individuals repeatedly cycling through New Mexico’s courts receive treatment instead of being released.
• Stronger penalties for convicted felons in possession of a firearm in the commission of a crime.

Housing and homelessness:

• Establishing a state Office of Housing supported with funding and expertise.

• $50 million in development subsidies to build houses for people who are priced out—making homebuying more affordable in New Mexico.
• $50 million to fight homelessness with dedicated services that lift individuals up and help them become stable, productive members of society.

Climate and energy:

• Updates to the Oil and Gas Act.

• Establishing a state-sponsored fire insurance program outside the private market to protect families and their homes – and to help make people whole when tragedy strikes.
• A strategic water supply for clean energy projects, advanced manufacturing, and even putting out wildfires.

Economic development:

• Providing $20 million to assist in expanding or relocating qualified business entities that are stimulating economic development and producing public benefit.

Health care, behavioral health & child well-being:

• Establishing an independent Child Protection Authority, jointly appointed by the legislature and the executive, that ensures CYFD adequately resolves all complaints from families and foster parents.

• Moving the responsibility for CARA—the Comprehensive Addiction and Recovery Act that helps pregnant mothers and newborns affected by substance abuse—to the Department of Health.

• Investing an additional $50 million in the Rural Health Care Delivery Fund and $100 million in behavioral health expansion.
• Establishing a state-sponsored medical malpractice program.

Education:

• Making the new Office of Special Education permanent in law—establishing consistent statewide standards for all K-12 special education students.

• Establishing a $50 million annual investment in the Indian Education Fund.

• Creating a comprehensive math and STEM program to match our strides in literacy.
• Providing a substantial increase for programs and services at the Early Childhood Education and Care Department.

 

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Gov. Michelle Lujan Grisham’s 2025 State of the State Address

Santa Fe, New Mexico

Tuesday, January 21, 2025

Good afternoon. Thank you, Mr. Lieutenant Governor, Mr. Speaker, Madam Pro Tem, distinguished senators, representatives, tribal leaders, and Secretary Deb Haaland. I also want to recognize my husband, the First Manny, my daughter Taylor, my brother Gregory, and my niece Chantelle. I also want to thank my daughter Erin, son-in-law Ian and grandkids Avery, Mason and Kaden who couldn’t join us today.

Today, I am here to speak to you about six years of success.

So, settle in and get comfortable, everybody. We’ll have someone order dinner. I’m joking––we’ll get you out of here well before dark.

But seriously, I do want to highlight many of our shared achievements today––in education, jobs, the environment, healthcare, and so much more. We’re making smart choices with record oil and gas revenues––including fortifying our general fund reserves and strengthening our pension funds––prompting Moody’s to upgrade New Mexico’s credit outlook from stable to positive. Now, we’re poised for a bond rating upgrade––a reward for investing today and saving for tomorrow.

But I also want to focus on the places where we can do more: Public safety and child well-being, for example, need our action now. And we need to talk about how we can and must continue improving the quality of life for every New Mexican––so the promise of this state reaches everyone who calls it home.

That begins with a world-class cradle-to-career education system. We all know that a comprehensive, high-quality education can set the trajectory for success – today, and more importantly for decades to come. That’s why we established a first in the nation constitutional right to childcare, universal pre-K, and then free college for any resident who wants it. It’s an unprecedented commitment to New Mexico’s young people that will pay dividends for generations to come.

This profound promise is why we’re still working to deliver truly universal free childcare for all. In New Mexico, the cost of childcare is out of reach for most families, with many spending $3,000 per month––or more–– to enroll just two children. That’s more than rent or a house payment for many, and it’s shattering household budgets. But because of our investment in free childcare, more than 30,000 New Mexico children are now getting the support that they and their parents need to succeed in their education and careers.

We’re close to realizing truly universal child care in New Mexico. But we’re not there yet. And that’s why I’m calling on this legislature to finish the job. For $205 million more, we can make that promise real for every New Mexico family. Let’s become the first state in America to give every child the start they deserve, with universal access to high quality childcare today and for the future.

We know that a world-class education meets students where they are at every stage of their development. Together, we’ve launched a Structured Literacy program that teaches the science of reading, resulting in higher scores.

Our Summer Literacy Programs enrolled nearly 10,000 students across the state, and the kids who participated showed an amazing 11 percent increase in reading proficiency. And that’s just one program in one summer. Don’t tell me we can’t do even more. We can, and with support from the legislature, we’ll keep doing it for every child, in every school in New Mexico, every year from now on.

I’m also calling for a comprehensive math and STEM program to match our strides in literacy. New Mexico has an unrivaled history of scientific discovery and advancement. Our children deserve the tools to create a future as groundbreaking as our past.

We understand that students must be in the classroom to reach their full academic potential. That’s why last year, I challenged districts across New Mexico to extend their school year to 180 days––and some rose to the challenge. School districts in Albuquerque, Farmington, and Hobbs, are among many that have embraced the 180-day challenge. But to truly succeed, we need to fully-fund the 180-day school year to guarantee that young people in every school get the attention and instruction they need.

We also need to expand instructional opportunities through the summer and make the most of the time we have with kids in the classroom. That’s why I’m proposing incentives for schools that ban cellphone use during school hours, along with funding for enhanced safety measures so that parents don’t have to worry about getting ahold of their kids in an emergency.

This is meaningful progress – but, again, there is much more to do. We need the legislature to pass a bill this session making our new Office of Special Education permanent, establishing consistent statewide standards for all K-12 students––and giving New Mexico’s special ed students the attention they deserve.

We’ve exponentially increased funding to schools for tribal students, but too often it does not reach them. So now, I’m asking for a $50 million annual investment in the Indian Education Fund to deliver resources directly to tribes and pueblos––instead of schools––to assist students directly––especially those in special education––with out-of-school tutoring, behavioral health services, speech therapy and other support that helps them succeed and honors indigenous language, culture and traditions.

The work we’re doing in education is shaping New Mexico’s tomorrow, and preparing our young people to one day establish stable and thriving families of their own. Free childcare. Free PreK. Free school meals. Free college. Child Tax Credits. Working Families Tax Credits. We’re delivering on fundamental financial security, and helping working families make ends meet right now.

These investments are, in fact, paying off––and changing lives. Just consider the deeply inspiring story of Mackenzie Sydow, whose mother was murdered in rural New Mexico in 2016. Her father died of a heart attack two years later, just after her 18th birthday. Facing an uncertain future, Mackenzie stepped up and assumed responsibility for her autistic and non-verbal younger brother.

Full of determination, she also plotted a course for her own future. Mackenzie took advantage of New Mexico’s Opportunity Scholarship, and just last month graduated with a degree in psychology. She also managed to become our reigning Miss New Mexico.

Stories like Mackenzie’s validate our collective work on behalf of New Mexicans and inspire us to do even more to educate our children, lift up our workforce and combat the scourge of poverty. Consider this: When you take into account the investments we’ve made in working families over the past several years, our poverty rate drops to 17th in the nation––better than the national average. I know there are skeptics; I encourage them to check the latest U.S. Census Bureau data. These numbers don’t lie.

Moving the needle this far, this fast, on child poverty is a monumental and historic achievement––for this legislature, for New Mexico, and for thousands of families now breaking free from centuries-old cycles of generational poverty.

But while fewer New Mexico children are living in poverty, those in the care of our Children, Youth and Families Department deserve more from all of us. The status quo, in which any family in crisis is cut off from the help they need, or where we lack the authority to save a child’s life––is simply unacceptable.

So, let’s start by committing to fully funding CYFD, so it has the resources and personnel it needs to do this important work. We can no longer ask our social workers and others to manage such large workloads that families and kids don’t get the attention they deserve.

Let’s get them the help they need. To do that, I’m proposing a partnership with an independent, outside expert in child welfare and foster care––such as those at the Urban Institute––to evaluate CYFD’s performance in conjunction with our state auditor and report their findings to the executive and legislative branches of this state every six months. These regular reviews will allow us to highlight our successes, identify where we’re not making the grade––and make needed adjustments in real time.

I’m also calling for a new, independent Child Protection Authority, jointly appointed by the Legislature and the executive, that will ensure CYFD adequately resolves all complaints from families and parents. The truth is that some are afraid to report complaints directly to CYFD, but the Authority will provide another way to inform us about threats to a child’s well-being.

We are moving the responsibility for CARA––the Comprehensive Addiction and Recovery Act that helps pregnant mothers and newborns affected by substance abuse––into the Department of Health, where public health experts are best equipped to support families with drug-addicted babies. But too many families do not adhere to the spirit of the program. That’s why it’s time to make these interventions on behalf of children mandatory.

To be clear, we’ve gained ground at CYFD particularly over the past year, including clearing a backlog of cases, reducing office stays, doubling the agency’s outreach to families in need of supportive services, and expanding access to behavioral health assistance. But there is more left to do––and we, together, are not willing to wait.

I want to increase the availability of safe and stable homes for the kids most at-risk in New Mexico. So,  in addition,  I’m introducing two new proposals to support families that foster children, and grandparents raising grandchildren.

Too many of these families are struggling to afford basic, everyday needs. So today, I’m proposing to exempt them from personal income tax––and double their stipend support up to $900 extra dollars per month per child. These families are the bedrock of our foster care system. I say, if you are stepping up for kids in need, we’re going to make it easier for you to support them.***

While managing foster care is uniquely challenging, the health and wellbeing of all New Mexico children and families has always been among my highest priorities. And over the last six years, you and I have worked together in every single session to improve the overall health and care of everyone in our communities.

That includes creating access to good-paying, homegrown New Mexico jobs that enable families to climb higher on the economic ladder.

Today, New Mexico has the largest number of jobs in its history. We’ve added more than 134,000 jobs in the past four and half years. In the last two years, we cut the employment gap in half. Our wages are rising faster than any other state. And new jobs are growing fastest in future-focused industries on the cutting edge of our economy. Advanced manufacturing; air and water purification; solar and wind farms that are powering our state.

And as new industries like quantum technology emerge on the horizon, we’re making sure they call New Mexico home. Today, I am proud to announce that Quantinuum, the world’s largest integrated quantum computing company, is establishing a major research and development presence here in New Mexico, anchoring our state as a leader in this projected $3.5 trillion industry. Two of their corporate leaders, Susan and Kaniah, are here with us today.

Achievements like these are a reminder that here in New Mexico, we don’t just embrace the future; we build it. We’ve always been at the forefront of national challenges, showing up with our trademark innovation and ingenuity.

That spirit of creativity and resilience is as vital today as it’s ever been – especially as we confront the growing threat of climate change.

We’ve all seen the devastating coverage of wildfires ravaging Los Angeles. Of course, fires spurred by climate change have also ravaged communities in our state, testing our patience and resilience as we struggle under the weight of natural disasters in our backyards. As if the fires themselves aren’t difficult enough, getting insurance protection is becoming impossible, either because it’s simply no longer available or exorbitantly expensive.

Today, I’m proposing a state-sponsored fire insurance program outside the private market, a risk-based model to protect families and their homes – and to help make people whole when tragedy strikes. No New Mexican should be priced out of a fire insurance policy.

I think we have an opportunity, and a responsibility, to look ahead and do more. That’s why I’m proposing––again––a Strategic Water Supply. Our state, like so many others, is facing a severe water shortage, and climate change is only making the problem worse. Yet we have enormous reserves of brackish water lying beneath our feet. And we have massive amounts of industrial water that is being injected right back into the ground. Let’s build the technology to clean up that industrial water rather than pollute our aquifers. This recycled resource can be used for clean energy projects, advanced manufacturing, data centers and even putting out wildfires.

And let me be clear––and I suggest state lawmakers spell it out in statute––recycled industrial water will not be used for human or animal consumption, or to irrigate our crops. Period.

We can spur innovation, create good jobs, eliminate pollution from forever chemicals and uranium and protect our communities from natural disaster – all while preserving our essential freshwater supplies for growing our crops and servicing the taps in our homes. In New Mexico, we’ve shown how we can combine sustainability with innovation and economic growth.

Right now, we’re helping to lead a national energy transition. We’re cleaning up our communities, reducing our carbon footprint, and making good on our commitment to reduce emissions. In fact, let’s make this the session in which the goal of net zero emissions by 2050 becomes the law of the land.

These kinds of clean energy initiatives are creating jobs and helping to grow our economy. With us here in the chamber today are Kailey Brunetto, Paul Tocora, Gustavo Morena, and Amanda Sandoval––they’re working in New Mexico’s oil patch to capture and contain climate warming methane gases. Joanna Chavez and Jake Sarno are with us, as well, taking a break from their jobs helping to harness New Mexico’s clean wind and solar power. This is the workforce that gets us to net zero and builds our clean energy future. Let’s give them a big round of applause.

As our economy and workforce grow, we need to build new homes and apartments to drive down the cost of living. We’ve kicked off redevelopment of the New Mexico State Fairgrounds. That’s more than 200 acres of land right in the center of the largest city in the state, ready to become a world-class live, work and play neighborhood that will transform the quality of life for our friends and families in Albuquerque.

Right now, there are 20,000 planned housing units across the state. Tierra Contenta in Sante Fe. Amador Crossing in Las Cruces. Aldea del Rio in the South Valley. But far too often, housing developments like these are stalled or frankly never finished. We must remove the barriers – with regulatory and zoning changes to make homebuilding easier.

We also propose $50 million in development subsidies to build houses for people who are priced out—making home buying more affordable in New Mexico––as well as capital investments in roads and water systems to accelerate development of affordable housing. Finally, we need a state Office of Housing to make sure the best laid housing plans are not stranded, but supported with funding and expertise until we see scores of families unloading U-Haul boxes into new homes and apartments across the state.***

Now, building more housing is critical. But it’s not always enough – especially for folks who find themselves unhoused. If we are really committed to getting our unhoused populations off the streets and back on their feet, we also need high-fidelity services that are available 24/7 – from medication-assisted treatment to temporary housing to job training. So today, I’m asking the legislature for $50 million to fight homelessness with dedicated services that lift individuals up and help them become stable, productive members of society. Addressing homelessness strengthens our communities, and it matters to every single one of us in this state.

Everyone in this room knows that crime is out of control in New Mexico. Even our public safety professionals agree, we’re in a state of crisis. Too many of us simply don’t feel safe in our communities, and that is, frankly, unacceptable. Right now, more than one third of New Mexicans say that they or their loved ones have been the victim of a serious crime. The violent crime rate in New Mexico is twice the national average. Addiction is rampant. And we’re clearly struggling to protect New Mexicans from this madness.

My administration has already invested $1.5 billion in personnel and equipment for police departments, and we’ll gladly ask for more – but money alone is not enough. We need changes to our laws right now to hold repeat violent offenders accountable. ***

So I am calling on this legislature to take action now: to toughen penalties for felons who illegally possess firearms that often end up in the hands of kids and teens. To tighten sentencing for criminals who traffic deadly drugs like fentanyl. To compel humane civil commitment for those who need treatment the most. And to reform criminal competency laws that let too many dangerous people remain on our streets. These are common-sense solutions that will keep families safer and reduce violent crime, as they have in the many states that have already adopted them.

I know, too, that businesses are bearing the brunt of these flawed policies as burglaries, shoplifting and property damage force businesses of all sizes to hire private security firms. It’s crushing their bottom lines, and it’s constricting economic growth in our communities as pharmacies, restaurants and mom and pop stores struggle to keep their doors open and their customers and workers safe.

So I’m proposing a new tax rebate to help businesses foot the cost of security personnel and equipment until we can get our crime epidemic under control. Business owners investing in their properties to repel burglars and keep their employees safe should know we all have their backs.***

Why do so many members of our communities feel as if they’re under siege? It’s in part because more than 3,500 dangerous, repeat offenders with rap sheets totaling nearly 6,000 felonies have been released back into our communities. It’s also because we’re not compelling those in the clutches of addiction, with the most serious behavioral health issues, to get the help they need. Saving lives and supporting families is clearly warranted in these extreme circumstances where the least restrictive interventions simply don’t work.

And we must make sure we don’t exclude people from life saving treatment while investing boldly in a system for those who need it. The state has a duty to provide a fully supported behavioral health system that meets New Mexicans where they are.

We need long-term addiction support services and comprehensive efforts to reduce homelessness. We must do better at keeping drugs like fentanyl off our streets, and reduce recidivism. But we shouldn’t let these long-term needs prevent us from taking action today.

With the time we have left, let’s turn quickly to health care…

With our new Health Care Authority leading the charge, we’ve increased Medicaid provider rates to among the nation’s highest, resulting in more than 2,700 new providers joining the Medicaid program since July. We created a Health Care Affordability Fund that today covers about 65,000 New Mexicans. We expanded the Health Care Professional Loan Repayment Program, which now supports more than 1,200 health care providers living and practicing in New Mexico; six years ago, that number was just 22.

Our Rural Health Care Delivery Fund delivered more than $80 million dollars for new and expanded primary care, behavioral health, maternal-child health, and specialty care services in our rural communities. And this month, we launched Certified Community Behavioral Health Clinics serving seven counties across New Mexico. In March, we’ll begin sending more than $1 billion in new funding to our hospitals through the Medicaid provider tax, supporting our at-risk rural hospitals.

These investments are a lifeline for our health care system and we can’t let up now. That’s why I’m calling for an additional $50 million for the Rural Health Care Delivery Fund and $100 million for behavioral health expansion initiatives – and I want to thank the legislature for your commitment to this cause.

We’re making a better health care system in New Mexico. But talk to any New Mexican in a doctor’s office, or frankly, anyone in this room, and they’ll tell you it’s not enough. There’s still a long wait for appointments. Patients are still driving long distances to see a specialist. And health care leaders are clear that the high cost of medical malpractice insurance is the barrier to recruiting and retaining the providers we need.

That’s why I’m proposing a state-sponsored medical malpractice insurance program. Insurance rates for doctors and health care providers shouldn’t be any higher in New Mexico than in neighboring states, and they most certainly shouldn’t be twice the national average. Let’s create a health care landscape that’s attractive to the best providers in the country.

There’s a lot of work left to do. But we’ve all been sent here to make life better for New Mexicans, and to stand up for the people in our communities. And we have shown, over and over again, that New Mexico’s past need not predict its future. We’ve made incredible progress with big, bold initiatives that have laid the foundation for enduring, generational change. We may not always agree – but we can agree to work together for the people we serve. What we do in this session can cement our collective and enduring legacy of lifting up New Mexicans.

Let me also say that I’ve been blessed to work with the best lieutenant governor in the country. Let us all recognize the incredible work of our Lieutenant Governor Howie Morales, a powerful voice for New Mexicans on every issue we’ve faced. Thank you, Howie, for your service to this state and this administration.

And if you also join with me – and contribute your energy, ideas and action to this bold partnership – I have no doubt we will continue to improve the quality of life for everyone in this state.

As I close today, I do want to return to the pressing issue of making New Mexico safe for every citizen. I recognize that the issues that plague us are rooted in poverty, inequality and generational challenges long neglected. This speech––and, in fact, my entire tenure––has been committed to fighting these scourges. And we have come so far––together. But our crime problem destabilizes the very communities we seek to empower; it threatens the very prosperity of our state, in which we have invested so much.

As you know, it is a small, but significant group of repeat offenders and criminals who wreak a large percentage of the havoc on our people and our businesses. We cannot and we must not let this continue. We need the tools to overcome this challenge. We can respect civil rights and protect the right of every  family to live safely, the right of small businesses to conduct commerce securely and the right of our children to grow up in communities free from danger.

So, let’s double down on our achievements, and expand their reach. Let’s protect our achievements and ensure their effectiveness. Let’s extend the promise of New Mexico to every corner of our state. And let’s guarantee that collective and enduring legacy for which we’ve fought so hard.

Thank you. God bless you. And God bless the great state of New Mexico.