Today, the New Mexico House of Representatives approved HB 11, known as the Welcome Child and Family Wellness Leave Act. This substitute bill for the Paid Family and Medical Leave (PFML) was previously passed on a straight party-line vote by the House Commerce and Economic Development Committee on February 20, 2025.

HB 11 proposes six weeks of paid leave for various medical reasons and extends to 12 weeks for childbirth or adoption. The bill passed with a vote of 38 to 31, facing bipartisan opposition. Despite a lower tax rate than initially proposed, it introduces a new employment tax affecting both employees and employers. Additionally, it includes a $9,000 payment per child to one parent upon birth or adoption. Public records estimate this benefit will cost $183 million annually based on New Mexico's birth trends.

The tax implementation is scheduled for January 1, 2027, for employers and July 1, 2027, for employees. Benefits are set to begin on January 1, 2028. Projections suggest that New Mexico could become a high-use state similar to others with comparable programs. The state's Fiscal Impact Report indicates that the program's fund might face insolvency in its first year of operation by $106,563,232 and could reach a deficit of $870,362,605 by 2031.

Carla Sonntag, president and CEO of New Mexico Business Coalition expressed concern: “It’s a sad day in New Mexico when a legislative body would be so irresponsible as to pass a bill that taxes employees and employers and is known to have such huge solvency issues before it goes into effect,” she said. “Employees and employers should not be taxed on a program that will fail financially and lead to higher taxes.”

During three hours of debate over the bill's merits, Representative Rebecca Dow proposed an alternative focusing solely on benefits related to childbirth or adoption without imposing taxes on employers or employees; however, this proposal was tabled.

Sonntag further commented: “I hope the Senate has enough sense not to jeopardize the state, employees, and employers with this poorly written legislation. While the state is flush with excess cash this year, that will likely not continue.”