New Mexico’s absurd federal dependency

05.29.2025

The following is a four part thread from Alex Ross who does a great job with the Roswell Daily Record. He highlights a recent presentation given to the New Mexico Legislature on New Mexico’s dependence on federal spending. I’m summarizing and adding to a few of the points made.

Propst pointed out that for every $1 New Mexico pays in taxes it receives $3.21 back in federal funds on things ranging from direct payments (Medicare, Social Security and SNAP), to grants, payments to state and federal employees and money for the state’s national labs, military installations and other assets.

Today at the Inaugural meeting of the Federal Funds Stabilization Committee, Wayne Propst, secretary of the @NewMexicoDFA cited data from a recent report which ranked New Mexico as number one in terms of states that receive federal funds.

He added that in all the state’s budget for FY 26 totals about $33.16 billion with dollars coming from various sources, with $14.44 billion or about 44% of it, coming from federal dollars.

Of course, New Mexico has long been both poor and extremely dependent on federal dollars, but the Rio Grande Foundation has been concerned for many years about this dependency (and the poverty driving it). Sadly, while the State sits on $61 billion and numerous other pots of money to enact bold economic changes, the State’s so-called “leadership” would rather whine about a loss of funds from a federal government that is $36 trillion in debt.