New Mexico’s transportation officials are urging lawmakers to provide more funding for deteriorating roads amid the expiration of major federal infrastructure funding and rising construction costs.
A 2026 report from TRIP found that 56 percent of major roads maintained by the state and local governments in New Mexico are in poor or mediocre condition.
The national transportation research nonprofit estimates that rough roads add about $1,043 a year in vehicle operating costs for the average New Mexico driver. Statewide, the costs are roughly $1.6 billion.
At the same time, the New Mexico Department of Transportation has identified approximately $7.5 billion in projects related to safety, reliability, and preservation, a significant increase from the about $1.3 billion shortfall identified in 2017. These projects, however, are unfunded.
Expiring federal funding
The expiring federal infrastructure money puts extra pressure on the state’s funding challenge.
The 2021 Infrastructure Investment and Jobs Act provided New Mexico with about $2.5 billion over five years for road and bridge projects. That funding was set to expire around September 30, 2026.
Transportation officials and industry representatives have told lawmakers that projects have already been identified and planned, but funding remains a limiting factor.
They have also pointed to rising construction costs as another challenge.
The Federal Highway Administration’s highway construction cost index increased by about 45 percent from 2022 to 2025, reducing the amount of work that can be completed with a given amount of funding.
Pressure on traditional revenue sources
New Mexico’s traditional funding sources, including gasoline taxes, are under pressure as vehicles become more fuel-efficient and electric vehicles become increasingly common.
NMDOT generally does not rely on ongoing general-fund appropriations for its core operations, making transportation funding especially important to the department’s long-term planning.
The state has already approved a $1.5 billion bonding package for transportation projects, supporting priority work. But it is only part of the estimated $7.5 billion in unfunded needs.
The issue is how lawmakers will close that gap while maintaining roads and bridges that are already deteriorating.
