14 Apr, 2026 Press Releases Auriella Ortiz
SANTA FE – Gov. Michelle Lujan Grisham has signed a record $1.5 billion higher education budget for fiscal year 2027, a 15.4% budget increase over last year and the largest investment in higher education in state history.
The budget sustains and expands the state’s nation-leading tuition-free college programs, accelerates workforce development and training initiatives, supports basic student needs and makes major investments in campus infrastructure.
"Higher education has become an engine for growth in New Mexico," said Higher Education Secretary Stephanie M. Rodriguez. This budget represents a historic investment in the state’s public colleges and universities, supporting employment in essential fields like education and health care while helping the next generation of New Mexicans from every corner of the state reach their career goals, and provide a better quality of life for students pursuing their degrees."
Free college and student support
Governor Lujan Grisham’s budget ensures that cost is never a barrier to a New Mexico student’s success, sustaining the nation-leading free college programs and providing critical support to students facing challenges in pursuing higher education.
The governor approved $186 million for the Opportunity Scholarship, $146 million from the general fund and $40 million from the Higher Education Program Fund, alongside a $37 million increase to the Lottery Tuition Fund, sustaining 100% tuition coverage for eligible students. Together, these investments enable continued 100% tuition coverage for New Mexico students and strengthen long-term support for New Mexico’s free college programs. More than 118,000 New Mexicans have benefited from the Opportunity Scholarship since its 2022 launch, driving higher enrollment and graduation rates statewide.
An additional $2.5 million will support food and housing-insecure students on campuses throughout the state, through a partnership between the Higher Education Department and the New Mexico Health Care Authority. This investment will help students struggling with housing access and food security to remain enrolled and continue working toward their academic goals.
UNM School of Medicine and campus infrastructure
Recognizing that a strong higher education system requires world-class facilities, the governor is making the largest infrastructure investment in the state’s public university system in recent memory, including a transformational commitment to New Mexico’s only public medical school. The University of New Mexico School of Medicine is slated to receive $546 million for a new facility funded through a combination of Supplemental Severance Tax Bonds, General Fund dollars and General Obligation Bonds, subject to voter approval in November. Construction will advance in phases, with Phase I already submitted for consideration at the April hearing.
The budget also includes $185 million for campus infrastructure statewide, with $20 million going to building renewal and replacement to support infrastructure and demolition and $3 million for equipment renewal and replacement to support the purchase and replacement of equipment at eligible institutions.
Workforce development
Governor Lujan Grisham is investing in the programs that recruit and retain talented New Mexicans where they are needed most, in classrooms and clinics across the state.
The budget includes $5 million to sustain the successful Teacher Loan Repayment Program, which last year supported 916 educators who committed to working in New Mexico communities in exchange for student debt relief. The Tribal College Dual Credit Teacher Preparation Program receives $5 million, double its prior funding to help more Native American students earn high school and college credits simultaneously on a path to become educators
The $25 million Health Professional Loan Repayment Program and a new $1.5 million Veterinary Medicine Loan Repayment Program will support recruitment and retention of doctors, nurses and food animal veterinarians in rural and underserved communities.
New Mexico's adult education programs receive $7.82 million, following the state's rise to 20th nationally in adult education outcomes per the U.S. Department of Education. This investment strengthens literacy, workforce readiness and access to adult education across New Mexico.
Additional budget measures signed by the governor are outlined below:
- $25 million for the Health Professional Loan Repayment Program
- $1.5 million for the Veterinary Medicine Loan Repayment Program
- $5 million to support athletics programs across all higher education institutions
- $3.25 million for a pilot program to support adult students in Integrated Education and Training Programs
- $500 million for RISE NM, the state’s education and workforce longitudinal data system
- $3 million for the state’s six centers of excellence for social work, agriculture, early childhood education, cybersecurity, renewable energy and biosciences
- $600,000 for the Dual Credit Program at tribal colleges and universities
- $7.82 million for Adult Education to support a variety of adult education programs across the state
- $1 million for literacy coordinators within colleges of education statewide
- $1.25 million for high school equivalency exams and materials
- $2.5 million for the Teacher Preparation Affordability Scholarship
- $5 million for the Teacher Loan Repayment Program
Link: Gov. Lujan Grisham approves record $1.5B for higher education | NM Higher Education Department