A consultant representing Bernalillo County briefed the Local Government Coordinated Council on the legislative interim, a revenue outlook and the possibility of a governor-called special session to address federal funding changes.

"We have $485,000,000 in new revenue," the consultant reported, citing the Legislative Finance Committee’s most recent revenue estimate. The presenter said that while state revenues continue to grow, the year-over-year increase is smaller than last year’s and legislators have been urged to prepare for a time when revenue growth slows or reverses.

Federal funding concerns and special session
The presenter briefed members on federal legislation commonly referenced in the meeting as the “big beautiful bill” and related federal changes that could reduce funding for programs such as SNAP and Medicaid. Staff cited an estimated $200 million shortfall in New Mexico over five years tied to those federal changes and said the governor has authority to call a special session; media reports and staff noted a special session had been discussed for the week of Sept. 25 to address the anticipated shortfall.

Why it matters: County programs and local budgets that rely on federal and state funding could face reduced reimbursements beginning in future years, staff said, and the Legislature will need to weigh how to respond.

Timing and next steps
The presenter said the Legislative Finance Committee will produce updated estimates in January before the regular 2026 session. The 2026 regular session will be a 30-day session focused on the budget; the presenter said Governor Michelle Lujan Grisham will set the agenda and that next year’s session coincides with statewide elections, which may affect the policy environment.

Ending: The consultant recommended preparing for potential reductions in federal funding and monitoring the schedule for a possible special session; council members asked clarifying questions about behavioral-health reimbursement rates and the timing of any cuts.