The New Mexico Higher Education Department announced Tuesday the largest investment in the state’s history, with Gov. Michelle Lujan Grisham signing a $1.5 billion higher education budget for fiscal year 2027.
According to the NMHED, the budget represents a 15.4% increase from last year and will sustain and expand programs that make New Mexico a national leader in tuition-free college.
Workforce development and training initiatives, basic student needs and campus infrastructure will also be supported under the plan.
“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.”
Grisham 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 for the Lottery Tuition Fund.
“Together, these investments enable continued 100% tuition coverage for New Mexico students and strengthen long-term support for New Mexico’s free college programs,” the NMHED said in a news release. “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 through a partnership between the department and the New Mexico Health Care Authority, according to the NMHED.
Grisham also approved funding for higher education infrastructure, with the University of New Mexico School of Medicine 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, including $20 million for building renewal and replacement to support infrastructure and demolition, and $3 million for equipment renewal and replacement to help eligible institutions purchase and replace equipment.
Programs aimed at recruiting and retaining New Mexicans in high-demand careers in classrooms and clinics were also included.
The Teacher Loan Repayment Program was sustained with $5 million. Last year, the program 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 will receive $5 million, double its prior funding, according to the NMHED. The funding will help Native American students earn high school and college credits simultaneously while preparing for careers as 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.
Adult education programs will receive $7.82 million, following the state’s rise to 20th nationally in adult education outcomes, according to the U.S. Department of Education.
The NMHED said the investment will strengthen literacy, workforce readiness and access to adult education statewide.
Additional budget measures signed by the governor are as follows: