New Mexico Department of Transportation: $7.5 billion needed projects to address deteriorating roads

New Mexico’s deteriorating roads is a big problem. This is true despite fact that New Mexico is awash in money AND the fact that the Legislature passed and MLG signed legislation last session with the intent of increasing transportation spending. The Legislature and Gov. are relying on debt and fee (tax) increases to fund the $1.5 billion in increased spending.

Unfortunately, according to Source NM, New Mexico Department of Transportation identified $7.5 billion in needed projects to address the problem. Furthermore,

According to a 2026 report by TRIP, a national transportation research nonprofit, 56% of all major locally and state-maintained roads in New Mexico are in “poor or mediocre condition.” Driving on rough roads costs the average New Mexico driver $1,043 annually in additional vehicle operating costs — a total of $1.6 billion statewide, according to the report.

The current funding gap remains nearly six times higher than in 2017, when NMDOT identified $1.3 billion in needed but unfunded projects.

What is to be done? There is (of course) always an interest in raising the gas tax. Rio Grande Foundation has advocated using general fund or even permanent fund revenues to address New Mexico’s road issues as well. But there MAY be an even simpler solution:

According to a separate Source NM report New Mexico ironically has just about enough unspent capital outlay money to address the issue. According to a new Legislative Finance Committee analysis. “About $7.6 billion intended for more than 6,400 big-budget projects across New Mexico remained unspent at the end of last fiscal year.”

While shifting ALL of the $7.6 billion in unspent capital outlay money may not be possible, it is hard to believe that perhaps half of those dollars couldn’t be shifted to actual road projects. $3.8 billion or so would go a long way to improving NM’s roads.