We have previously written about HB 14 “A Mediocre Bill Goes Bad” which discussed the “earned income tax credit” bill having a tax hike on oil and gas piled onto it. That was BEFORE the bill passed the House. We also have discussed the seeming “death” of taxes on alcohol taxes and the lack of a “tax bill” for the 2025 session.

Now, HB 14 has become the legislative vehicle for the “tax bill” and in addition to the tax credit and oil/gas tax hike the bill has become a smorgasbord of policies and handouts for specific industries and areas of the state. You can find the entire list here with the exception of two components of HB 14. The bill remains rated -6 in RGF’s Freedom Index because it is absurd to raise ANY taxes at a time of multi-billion dollar surpluses (thanks largely to oil and gas revenues).

Oil tax increase;

A refundable (meaning you can get a check even if you pay no taxes) tax credit for low income people;

Tax hike on alcoholic beverages;

A volunteer emergency medical services, firefighter, and search and rescue income tax credit (fine);

Local journalist employment income tax credit/corporate income tax credit and printer income/corporate tax credits;

Foster parent/guardian tax credit;

Quantum facility income/corporate tax credit;

Extends for two years (from 2028 to 2030) a tax credit on health care providers;

Creates UNM School of Medicine fund and allocates gross receipts tax revenue to it.

With the defeat of HB 11 and its tax hikes and other numerous bad policies over the weekend New Mexico businesses let out a collective sigh of relief. But, one set of businesses (gun stores) are squarely in the “crosshairs” of New Mexico’s “progressive” legislators. What am I talking about? SB318 just passed 21 to 18. The bill is rated “-8” (the worst rating possible) on the Foundation’s Freedom Index.

The bill is a blatant attempt to use litigation to attack gun stores. If passed, this bill could put every gun store in New Mexico out of business while providing a treasure trove for New Mexico’s rapacious trial attorneys. The bill accomplishes this by amending New Mexico’s Unfair Trade Practices Act to make it easier to sue a gun store than any other type of business and imposing harsher penalties on gun stores than any other type of business.

Further, the bill states: “proof of monetary damage, loss of profits or intent to deceive or take unfair advantage of any person is not required” to sue a gun store or manufacturer. Activist groups who hate the Second-Amendment would be given free rein to sue New Mexico gun stores until the stores are forced to close. No other state in the country targets gun stores in this extreme manner.

If other businesses, especially those that are unpopular with the political left, think that they can’t or won’t be attacked in a similar way. This legislation is a dangerous to everyone.

• SB318 expands the definition of unconscionable trade practice to include “goods or services offered for sale by an online marketplace whether directly or by a third-party seller”
• Monetary awards jumped from $300 to $30,000 per incident (holy inflation, batman!)
• Makes the filing of a class action suit easier by removing language requiring mediation
• At many points, firearms are tied explicitly to “An online marketplace, seller or third-party seller”, but at others, the “firearms” caveat is left out. This ambiguity could be exploited – at $30,000 per incident + attorneys fees – to target online sales of items that the attorney general dislikes or deems unconscionable.

The bill now heads to the House Side. We expect it will stop in the House Judiciary Committee first, followed by a floor vote if it passes that committee. Here are the House Judiciary Committee’s contacts:

House Judiciary Committee

Christine Chandler – (D) christine.chandler@nmlegis.gov 505-986-4411
Andrea Romero – (D) andrea@andrearomero.com 505-986-4243
Javier Martínez – (D) javier.martinez@nmlegis.gov 505-986-4782
Matthew McQueen – (D) matthew.mcqueen@nmlegis.gov 505-986-4423
Andrea Reeb – (R) Andrea.Reeb@nmlegis.gov 505-986-4215
Reena Szczepanski – (D) reena.szczepanski@nmlegis.gov 505-986-4777
Michelle Paulene Abeyta – (D) michelle.abeyta@nmlegis.gov 505-986-4254
Nicole Chavez – (R) nicole.chavez@nmlegis.gov 505-986-4214
William A. Hall II – (R) bill.hall@nmlegis.gov 505-986-4336
Dayan Hochman-Vigil – (D) dayan.hochman-vigil@nmlegis.gov 505-986-4777
Alan T. Martinez – (R) Alan.Martinez@nmlegis.gov 505-986-4758

HB 215 is yet another in a long line of bad bills relating to housing policy in New Mexico’s 2025 legislative session. The bill demands property owners not use AI in collecting, analyzing, and training an algorithm/AI on historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of dwelling units from two or more rental property owners in order to recommend rent prices or lease renewal terms.

In other words, no using the best technology available to set rent prices and terms. So, instead this bill requires the use of hunches, dartboards, informal surveys, and less scientific approaches. Why? Who knows? It’s just another ridiculous way for politicians to intervene in the housing market without actually doing anything to increase the housing supply in New Mexico.

It would seem that explicitly prohibiting the use of the latest technology (AI) for something as basic as helping determine the price of rental tool for price discovery int the rental market might make entrepreneurs and businesses even less likely to move their AI-oriented businesses to New Mexico. Does New Mexico REALLY need to double down on anti-technology approaches to policymaking especially in the area of housing, which the state needs to build more of?

The bill is currently awaiting action on the House floor. It is rated “-4” in our Freedom Index.

Let’s be honest: the Democrats who control Santa Fe have Zero interest in growing New Mexico’s economy. They DO wish to penalize the oil and gas industry by raising taxes on them, however. Enter HB 14 which recently passed the New Mexico House.

In it’s original form HB 14 was questionable. It was an increase in the generosity of New Mexico’s version of the Earned Income Tax Credit. In its original (and final) forms, while the bill would have reduced tax for many low-income New Mexicans, it would also be “refundable” meaning it is now additional spending. The bill would create (even bigger) payments to those with incomes too low to pay taxes under New Mexico law. As originally designed it was a “-2” in our Freedom Index. RGF strongly supports tax cuts for ALL New Mexicans that pay taxes, but we are NOT fans of creating additional spending programs tied to federal welfare programs.

As if that were not bad enough, Democrats added new taxes on oil and gas (originally contained in HB 548) to the bill. Now, the proposal is a “double whammy” with tax hikes on oil and gas AND the new, “refundable” credit in the bill. RGF has made its score even more negative with a “-6” rating.

Raising taxes on New Mexico’s most important industry is inexcusable at a time of record surpluses and when the state is sitting on massive piles of cash. Creating additional spending program swamps the benefit from limited tax relief contained in the bill. The bill will soon be heard in the Senate Tax, Business, and Transportation Committee.

If you were to summarize the work of the Rio Grande Foundation in one basic concept, that concept would be “Economic Freedom.” Economic Freedom is simply the ability to engage in voluntary economic transactions without government intervening in the form of taxes, subsidies, regulations, minimum wages, and other unnecessary interventions.

For decades the Fraser Institute has published “Economic Freedom of the World” and “Economic Freedom of North America” reports which show that nations, states, and provinces that embrace economic freedom are faster growing economically and population-wise. They also have cleaner environments, less poverty, greater gender equality, and numerous other positive outcomes.

As a new (first of its kind) joint Rio Grande Foundation/Fraser Institute report finds, New Mexico, unique among US states, has seen a decline in overall economic freedom since 1981. As the following charts from the report highlight New Mexico’s lack of economic freedom has had additional, negative impacts on the State in terms of economic/population growth.

The City of Albuquerque has become the latest to adopt some variation of UBI (universal basic income).

The City’s plan is Guaranteed Income Initiative, provide $750 monthly for three years to 80 households in the International District and West Side, targeting low-income families in areas with low academic outcomes and high absenteeism.

Here’s a more detailed breakdown:

The initiative will cost $4.02 million, with just over $2 million from City of Albuquerque Marijuana Tax Revenue, following the approval of the Marijuana Equity and Community Reinvestment resolution.

• The program will focus on the International District and West Side, specifically targeting families from Whittier and Carlos Rey Elementary Schools, which have low academic performance and high chronic absenteeism. 

• The first cohort will consist of 80 households receiving $750 monthly for three years. 

• The program aims to address historic inequity and help create economic stability for struggling families, closing the wealth gap. 

• The program is being run by the City’s Office of Equity and Inclusion, in partnership with Albuquerque Public Schools. 

• Participants are required to work with the Office of Equity and Inclusion in their financial empowerment program to get financial literacy education. 

• The city will track students’ school attendance, if participants are completing their financial counseling, and have participants do regular surveys to measure the program’s effectiveness.

It will of course be interesting to see what comes of this program. Will recipients lose the money if their kids don’t attend school or if they don’t complete their financial counseling or surveys? After all, it is supposed to be “guaranteed.” Studies of these pseudo-UBI programs have found them to be harmful. 

Of course, as the Brookings Institute has noted, the BEST anti-poverty measure is the Brookings Institute’s “Success Sequence.”:

With just over a week left in the 2025 legislative session the revised version of HB 11 (formerly Paid Family Leave) had an unusual vetting from the Senate Finance Committee. You can find the Santa Fe New Mexican’s report (including a quote from RGF) and the ABQ Journal version here.

The Finance Committee should be applauded for taking a closer look at the plan’s solvency. This is an issue we have highlighted as well. As the analyst noted, “the “biggest issue” with the welcome child benefit is “the bill doesn’t specify a source of funding.”

There are also real questions about the numbers in the proposed bill and whether they add up. In other words, it was a worthwhile discussion that shined some light on this ill conceived proposal.

What will the Finance Committee do? The bill awaits a hearing. If it passes Finance “as-is” it will likely fly through the Senate to final passage and on to the Gov.’s desk. Her signature is NOT guaranteed. Or, the Finance Committee will kill it for the session or revise it (it will be hard to pass a revised bill with so little time left).

Hopefully the Finance Committee does their job and rejects this deeply flawed plan.

Paul and Wally discuss the latest on HB 11, formerly known as Paid Family & Medical Leave.

A bill to raise alcohol taxes died in committee (HB 417). Are alcohol taxes dead for the session? Speaking of which, the tax bill is/could be the biggest bill yet to drop this session. It could STILL include this and other tax policies and be rammed through by session end.

Democrats in the House Energy Committee rejected another opportunity to reform EV rules by overturning MLG’s mandate.

Bipartisan support for a Medicaid Trust Fund? What does it mean?

Paul attempted to testify (virtually) against HB 6. Why and what happened?

Today is the 5th anniversary of MLG’s first COVID public health emergency. Paul and Wally look at that legacy and the recent NM supreme court decision to ratify it and other emergencies like her anti-gun emergency.

Paul will be in Alamogordo on the day of March 26 and we have an exciting event on New Mexico’s medical shortage that evening in ABQ as well:

Darren White is the latest addition to the Albuquerque Mayoral race. Can anyone knock off Tim Keller?

The following article ran in Santa Fe New Mexican.

Five years ago on March 11, 2020, New Mexicans’ lives changed dramatically. Gov. MLG issued the first of what would wind up being dozens of emergency health orders relating to COVID 19. It is hard to believe it has been five years now. It is also hard to believe that New Mexico’s Legislature (even with Democrats in charge) has done NOTHING to reform New Mexico’s excessively broad public health emergency laws. But MLG liked the power of an “emergency” and subsequently used New Mexico’s broad “emergency” powers to further consolidate power (by essentially banning guns in Bernalillo County, for example). This power grab was recently ratified by New Mexico’s Supreme Court.

MLG’s lockdowns failed (as we believed they would at the time).

• Despite some of the strictest lockdowns in the nation New Mexico’s COVID death rate was 3rd highest in the nation.
• Masks, social distancing, “outdoor” dining, forcing New Mexicans to wait outside to buy groceries, vaccine mandates, and numerous other schemes were simply made up on the spot with no scientific data to back them up.
• Numerous businesses closed for good and crime and homelessness skyrocketed especially in our cities.
• Perhaps the biggest negative impact of MLG’s lockdowns was their impact on New Mexico school children who have now compiled the worst scores in the nation on the National Assessment of Educational Progress (NAEP) in both 2022 and 2024.

We are pleased to report that HB 417 which would have raised alcohol taxes dramatically, is dead for the session. The bill was itself a compromise between two “progressive” factions in the House  and it got caught up with further disagreement over various provisions that seemed to “ruin” the compromise and resulted in the bill being killed on a 6-6 basis in the House Taxation Committee on Monday, March 10.

We certainly hope and expect that the concept of raising taxes on alcohol is dead for the session, BUT there is always the possibility that something relating to alcohol tax hikes could be included in the final tax package that is (unfortunately) negotiated behind closed doors. This was done just last year. This is one of MANY aspects of the process in Santa Fe that is anti-democratic and anti-good government. We’ll be keeping an eye out when that tax package becomes public in a few days.

Of course, it is worth noting that if Democrats WANTED to dedicate alcohol taxes to treatment to address our State’s alcohol problems they’d likely have nearly unanimous bipartisan support for THAT. Instead they want to pair allocation of the funds with a major tax hike.

The name of HB 11 has changed. It is now the: “Welcome Child and Family Wellness Leave Act” (formerly Paid Family and Medical Leave). But, the bill is up for a hearing on Saturday in the Senate Tax, Business & Transportation committee. You can find details on the hearing including a link to testify online here. 

The bill remains seriously problematic, especially in terms of future solvency and tax increases and possible budget implications. It  now provides 6 weeks per year, except for welcome child leave, which allows for up to 12 weeks.

The revised bill ADDS a $3,000 welcome child refund, to be paid to one of the child’s parents each month for the three months immediately following the birth or adoption of the child for a total of $9,000.

This bill remains an expensive and dangerous tax hike on New Mexicans and New Mexico businesses. Here are the members of the committee along with their office numbers and emails and priority for contacting them. This is a committee that COULD kill this harmful bill. The main Roundhouse switchboard number is 505-986-4300 the extension is listed under office number:

As thoroughly documented and explained by Albuquerque Journal reporter Dan Boyd New Mexico’s Supreme Court affirmed the legality of Gov. Lujan Grisham’s public emergency orders which involved her overturning the 2nd Amendment to the US Constitution (without so much as a legislative vote). The emergency ALSO targeted drug use, but the Gov.’s declaration primarily eliminated the ability to conceal OR open carry a gun in Bernalillo County. Thus, MLG (and the Supreme Court by ratifying her actions) are directly attempting to overturn the US Constitution by executive fiat.

Sadly, despite repeated efforts since the start of the COVID 19 pandemic and the Gov.’s first public emergency declaration on March 11, 2020, efforts by GOP legislators (and assisted by RGF) to reform New Mexico’s public emergency laws by giving the Legislature a “seat at the table” have been fruitless. A bill that would reform New Mexico’s public emergency laws has been introduced in the past by Republican House member Greg Nibert (now a PRC commissioner) and has been introduced (HB 535 as well as  an amendment HJR 21) by Republican House members Stephanie Lord and John Block only to be left unheard as the session is now two weeks from its conclusion.

Sadly, whether the issue is EV mandates imposed (without legislative input) by MLG or her abuse of emergency orders, New Mexico’s Democrats utterly refuse to stand up to this Gov. and assert their rightful powers. Even anti-gun activist David Hogg stated clearly that the Gov. was acting illegally. Does this mean New Mexico’s Democrat Supreme Court is to the left of Hogg on guns?

This morning in the House Energy Committee HB 270 was heard. The bill would have overturned the Gov.’s 43% EV mandate (set to take effect later this year) and would remove the authority of the Environment Department (NMED), the Environmental Improvement Board, local boards and entities, and counties and municipalities from adopting or enforcing similar rules.

A robust and informative debate took place, but sadly NO Democrat was willing to buck the hard-left of their party and support the freedom of New Mexicans to purchase the vehicle of their choice (of course they’d also be standing up for the Legislature to enact such sweeping laws as opposed to the Gov.).

But, Democrat Reps. McQueen, Sariñana, Abeyta, Meredith Dixon, Yanira Gurrola, and Miguel Garcia all refused to support the legislation.

RGF has been a leading voice in support of both federal and state efforts to restrain and reform Medicaid spending. Of course, with New Mexico’s massive budget surpluses driven by oil and gas we have ALSO supported all manner of efforts to reform New Mexico’s unnecessarily high tax burden and return money to New Mexicans.

Sadly, New Mexico’s Senate just passed SB 88 (unanimously) which sets up a $2 billion “permanent fund” (in part) to keep New Mexico’s Medicaid program afloat if the Trump Administration cuts Medicaid funding. This is DEEPLY unfortunate.

Medicaid is in desperate need of reform. Ideally, the federal government would block grant Medicaid to the states. Whatever happens to Medicaid in the near future, the LAST thing that anyone, let alone Republicans in New Mexico, need to do is to create a fund that sucks up money and helps New Mexico maintain its bloated Medicaid rolls.

RGF had a chance to testify in the Legislature on Tuesday, March 4, before the Energy Committee in the House.

We spoke against SB 23 which, if adopted, will raise “royalty rates” on oil extracted from certain state managed tracts of oil and gas rich land in Southeast New Mexico. The bill barely made it through the committee on a 5-4 vote (a few Democrats were absent). The RGF sees tax hikes as unnecessary (and told the Committee as much) because New Mexico already gets the highest percentage of revenue from oil and gas extraction of any state.  This is thanks to other taxes besides royalties such as the gross receipts tax.

Also, New Mexico is sitting on $61 billion and massive annual budget surpluses thanks to oil and gas. Little of this money is being returned to taxpayers. Instead it is either funding future or current government spending.

A second bill, HB 273 was introduced by Rep. Randall Pettigrew (R-Hobbs). Pettigrew’s bill would add “combined cycle natural gas plants” to the stable of “renewable” energy sources under the 2019 Energy Transition Act. Testimony, was, but a vote was not taken. That will presumably happen on Thursday. The ETA never made sense in the absence of the use of natural gas which is MUCH cleaner and a 50-60% lower source of CO2 relative to coal. Of course, natural gas is cheap and expected to be so for a long time and it is produced right here in New Mexico.

Needless to say, so-called “environmentalists”: HATE the bill.

Another bill was scheduled but not heard. HB 270 would have repealed the Gov.’s EV mandate and prohibited unelected boards like the unelected Environmental Improvement Board from passing such mandates.

On this week’s conversation Paul and Wally discuss the latest on the newly renamed paid leave bill and other issues in the Legislature.

How are things looking in terms of the Freedom Index?

Paul recently wrote a blog post that was picked up by the Santa Fe New Mexican that the process in Santa Fe stinks.

MLG plans a special session to deal with Trump cuts, but Medicaid is in dire need of reform. What does it all mean?

Paul will be discussing tax reform at an event this weekend w/ AFP. If you have a chance to come out on Saturday Paul will talk state taxes and there will be a separate presentation on the Trump tax cuts.

President Trump and his Administration are taking a hatchet to unnecessary government spending in Washington. This effort was clearly going to have an impact on New Mexico which (according to USA Facts) is the 2nd-most federally dependent state in the nation. To that end, Gov. Lujan Grisham has ALREADY stated that she plans to call a special session to address federal cuts, particularly to the Medicaid program.

The President is 100% correct to target Medicaid for cuts. For example, New Mexico plans to increase Medicaid spending in the FY 2026 budget alone by “$3.3 billion to $15.5 billion, a 27% jump” according to this recent AP article. The federal government picks up approximately 72% of New Mexico’s Medicaid budget while the State’s share is about 28%.

This federal subsidy has led to New Mexico politicians to “scam” Medicaid for many years. For example, in 2024 New Mexico adopted the “Health Care Delivery and Access Act.” Under the law, “The state law will assess a tax on hospitals — a larger tax on big hospitals — pool it, leverage those funds for a federal Medicaid match, then bring about $1.5 billion in total funding back to New Mexico to provide sustainable reimbursement to our state’s hospitals.” In other words, by manipulating the Medicaid formula the State of New Mexico will fleece taxpayers in the other 49 states out of $1.5 billion.

It is no surprise given New Mexico’s political inclinations that the State would have a positively huge Medicaid population. Indeed, according to the Legislative Finance Committee 47% of the State’s population is on Medicaid. Other analyses place New Mexico as the highest Medicaid receiving state in the nation. But some in the Legislature would like to expand Medicaid eligibility in New Mexico even more. The health care benefits of massive Medicaid spending are

It is time for the Trump Administration to prevent states like New Mexico from misusing the Medicaid system to take advantage of taxpayers in other states. If that means New Mexico using a portion of its massive oil and gas budget surpluses to pay for Medicaid at least New Mexico won’t be fleecing taxpayers in other states (as badly).

Data for the following chart can be found here and here and in the AP article mentioned above (here). The $15.5 billion figure for FY 2026 is an estimate taken from the AP article. 

After being the stumbling block for Paid Family and Medical Leave in 2024 the New Mexico House passed a somewhat scaled back but potentially insolvent plan (HB 11) on Friday afternoon. While a thorough financial analysis is still lacking the LFC’s analysts found that the “high” and “moderate” update scenarios would result in deficits (see page 6). In other words, the tax hikes contained in the bill are only the start under the most likely scenarios and that is barring some kind of negative stock market shock since the funds collected will be invested in the stock market.

The vote board is below and this bill will be scored “-8” in the Foundation’s Freedom Index.

On this week’s interview Paul sits down with attorney, activist, and author Ilya Shapiro. Shapiro worked at the libertarian Cato Institute for more than a decade and attempted a career change to Georgetown Law School. Sadly, a factually accurate but “controversial” post on social media got him into hot water and caused nationwide controversy including at Georgetown Law. The dustup caused Ilya to look elsewhere for employment and also resulted in his new book “Lawless: The Miseducation of America’s Elites.” You don’t want to miss this informative conversation!