At noon on Tuesday, January 20, the New Mexico Legislature convened its 30-day “budget” session — a short, fast-paced period largely focused on the state’s financial priorities. However, many expect the agenda to extend far beyond the budget.
Because this is Governor Michelle Lujan Grisham’s final session, there’s strong anticipation she’ll broaden the call to advance key legacy issues. With new leadership coming in 2027, this year’s session is likely to be an active one — and the outcomes could have long-term implications for restaurants and the hospitality industry across New Mexico.
Key Issues We Are Watching
Budget and Spending: State revenues, fueled by oil and gas, have plateaued. This year’s projection of $13.4 billion means less “new money” for new programs compared to prior years. Competing budget proposals differ in spending growth and in how to fund major programs like universal childcare — initiatives that could impact the labor force and family support structure, important to restaurant workers.
Fiscal Planning: New Mexico’s $67 billion in trust funds is a bright spot, helping stabilize the state’s economy in leaner years. For businesses like restaurants that depend on consumer confidence and predictable tax policies, preserving these reserves—and avoiding the temptation to spend them on short-term projects—supports long-term stability.
Health Care Access: Restaurants rely heavily on a healthy, stable workforce. Yet New Mexico continues to struggle with doctor shortages and rising health care costs. Legislative attention on malpractice reform, rural health care expansion, and student loan support for medical professionals could make a difference for employees and operators alike.
Public Safety: High crime rates continue to affect restaurant operations, particularly in urban areas, where property crime and repeat offenses discourage evening traffic and pose a threat to employee safety. NMRA supports meaningful reforms that make our communities safer for both workers and customers.
Public Education: 2,200 students are enrolled in the ProStart CTE program across 42 NM High Schools. The missing link is connecting them to the restaurant industry. The restaurant and broader tourism sectors are grappling with a persistent labor shortage, a challenge that is expected to persist for multiple years without strategic intervention. To address this pressing issue, we urgently seek financial support to cultivate the next generation of hospitality leaders and build a pipeline to employment in the hospitality industry. With $500,000 appropriated by the legislature, we can encourage these students to work in this growth industry. This targeted investment will enrich the talent pool and contribute to the long-term sustainability and growth of these crucial industries.
The ProStart program teaches students the fundamentals of the restaurant industry. It gives them management skills so they can work in a restaurant in high school and move into management when they graduate.
Business Support: Restaurants are among the small businesses most affected by state regulations, especially labor regulations, since restaurants have so many employees per dollar of income. NMRA will continue to advocate for policies that support small business success, workforce development, and infrastructure investment that supports tourism and local commerce.
What We’re Watching
As of now, we have not yet heard whether legislation will surface on several issues critical to our industry — including Paid Family and Medical Leave, soft drink or alcohol taxes, or minimum wage. NMRA will stay closely engaged and alert members if any such proposals are added to the governor’s call.
The 30-day session moves fast, but its outcomes shape the environment in which every restaurant operates — from labor policies to tax structures to community safety. NMRA will keep you informed and advocate for a healthy business climate that sustains restaurants across the state.
Stay tuned for updates as the session unfolds.