The New Mexico Senate convened on March 5, 2025, to discuss several legislative matters including healthcare, education, and state investment procedures. A significant development was the passage of a bill aimed at stabilizing Medicaid funding.

Senate Bill 88/a, sponsored by Senator George Muñoz and passed unanimously with a 37-0 vote, establishes the Medicaid Trust Fund (MTF) and the State Supported Fund. This initiative allows the state to utilize these funds if federal Medicaid contributions decrease significantly. Starting in fiscal year 2030, the MTF will distribute annually 5% of its average year-end balance from the previous three years to a newly created State-Supported Medicaid Fund. This is contingent upon the MTF maintaining a minimum balance of $500 million.

These distributions will be managed by the New Mexico Health Care Authority and can be appropriated by the legislature to support and match federal funds for the state's Medicaid program. Senate Majority Leader Peter Wirth highlighted that approximately 768,000 New Mexicans currently rely on Medicaid.

"Medicaid is our biggest cost to the budget besides education and as state revenues grow, it’s wise for New Mexico to set up contingency options for whatever scenarios might be on the horizon," said Senator Muñoz. He added that as the trust fund grows, it will help stabilize costs and fulfill commitments to children, elders, and families in New Mexico.

Information from this article can be found here.