New Mexico ramps up investments in higher education. Gov. Michelle Lujan Grisham signed a record $1.5 billion higher education budget for fiscal year 2027. The measure represents a 15.4% increase over last year. This marks the largest investment in higher education in state history.
The budget sustains and expands the state’s nation-leading tuition-free college programs while accelerating workforce development and training initiatives. It also supports students’ basic needs and provides major funding for campus infrastructure.
“Higher education has become an engine for growth in New Mexico,” said Higher Education Secretary Stephanie M. Rodriguez.
Rodriguez said the budget represents a historic investment in the state’s public colleges and universities. It supports employment in essential fields like education and health care and helps the next generation of New Mexicans reach their career goals. She added that it will improve the quality of life for students pursuing their degrees.
Budget boosts student support and access
Governor Lujan Grisham’s budget ensures that cost is never a barrier to student success. It sustains the nation-leading free college programs and provides 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. This comes alongside a $37 million increase to the Lottery Tuition Fund, maintaining 100% tuition coverage for eligible students.
These investments preserve 100% tuition coverage for students and strengthen long-term support for free college programs. Since 2022, the Opportunity Scholarship has helped over 118,000 New Mexicans, boosting enrollment and graduation rates statewide.
An additional $2.5 million will support students facing food and housing insecurity on campuses across the state. The Higher Education Department and the New Mexico Health Care Authority will partner on the program. This investment helps students struggling with housing access and food security to stay enrolled and continue reaching their academic goals.
State invests heavily in UNM medical school and campus infrastructure
The governor is making the largest infrastructure investment in the state’s public university system to date. This includes a transformational commitment to New Mexico’s only public medical school, reflecting the need for world-class facilities in higher education.
The University of New Mexico School of Medicine is slated to receive $546 million for a new facility. Funding will come from Supplemental Severance Tax Bonds, General Fund dollars, and General Obligation Bonds, subject to voter approval in November. Construction will proceed in phases, with Phase I already submitted for consideration at the April hearing.
The budget also includes $185 million for campus infrastructure statewide. It allocates $20 million for building renewal and replacement to support infrastructure and demolition. It also sets aside $3 million for equipment renewal and replacement to support the purchase and replacement of equipment at eligible institutions.
Funding strengthens New Mexico’s workforce pipeline
Governor Lujan Grisham is investing in the programs that recruit and retain talented New Mexicans. These programs place workers where they are needed most, in classrooms and clinics across the state.
The budget includes $5 million to sustain the Teacher Loan Repayment Program. Last year, the initiative supported 916 educators who committed to working in communities in exchange for student debt relief. The Tribal College Dual Credit Teacher Preparation Program receives $5 million, double its prior funding. The program aims to help more Native American students earn high school and college credits simultaneously on a path to becoming 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 efforts. These programs will help doctors, nurses, and food animal veterinarians in rural and underserved communities.
New Mexico’s adult education programs receive $7.82 million. The state ranks 20th nationally in adult education outcomes, according to the U.S. Department of Education. This investment strengthens literacy, workforce readiness and access to adult education across New Mexico.