Lawsuits Free $12 Billion in Federal Funds for New Mexico Schools and Services

The New Mexico Department of Justice has reclaimed roughly $12 billion in federal funding for schools, health care programs and infrastructure projects after judges in several multistate lawsuits granted temporary relief from a freeze imposed by the U.S. Office of Management and Budget, Source NM reports.

Deputy Counsel Anjana Samant told the Legislature’s Federal Funding Stabilization Subcommittee that the restored funds include more than $50 million for the Public Education Department, $59 million in pandemic-era public health grants and $18 million for electric vehicle infrastructure projects. She said the rulings allowed schools to move forward with the 2025-26 academic year, after many districts had prepared for hiring freezes, program cuts and delayed services.

The department’s Impact Litigation Division, which has fought since January to keep federal dollars flowing to New Mexico, operates with just five attorneys. Samant urged lawmakers to approve $3.2 million in additional funding during the 2026 legislative session to expand the team’s capacity. “To say we are at capacity is an understatement,” she said, Source NM reported.

Lawmakers from both parties appeared receptive. Sen. William Soules, D-Las Cruces, co-chair of the subcommittee, said that for a few million dollars, an office of four or five people had saved the state several billion. New Mexico has joined more than 20 multistate lawsuits aimed at blocking measures that could limit federal grants or change how states administer them.

Editor’s note: Updated Oct. 31, 2026. This story is now part of Daily Reports, our New Mexico news roundup, and was revised to credit Source NM’s original reporting. Learn how Daily Reports works in our editorial standards.