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Department of Health seeks funding for forensic lab completion, toxicology capacity and program support; highlights substance-exposed newborns data

Legislative Finance · December 8, 2025
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Summary

The Department of Health asked appropriators for increased base and supplemental funding: staff and supplies for toxicology labs (linked to HB8), $80M to finish a forensics unit, operational funding for veterans homes and program support for CARA and MOUD; DOH reported 1,326 active substance-exposed newborn care cases.

Madam Secretary of Health presented operational improvements and a series of budget requests designed to stabilize state-operated facilities and expand public-health capacity. "We've increased census as of today ... it's roughly at almost 74% today," the secretary said, citing facility improvements and accreditation milestones.

Why it matters: DOH framed requests as investments to maintain existing services and meet statutory changes that have increased workload (including House Bill 8 changes that expanded toxicology testing responsibilities). The department highlighted measurable operational gains—reduced Medicaid pending cases, improved contract timeliness—and tied budget requests to concrete needs in labs and facilities.

Requests and specifics: DOH requested a modest base increase to cover group health insurance risk and operational shortfalls and specific line items including $960,000 for epidemiology and response, $710,000 for the DOH helpline, and $250,000 for ongoing hosting and maintenance of a virtual vital records vault. For lab capacity, DOH asked for funds to hire four toxicology bureau positions and about $350,000 for increased toxicology testing supplies related to HB8 workload. In capital priorities, DOH said it needs an additional $80 million to complete an already-under-construction forensics unit and sought authorization for a new Las Lunas intermediate care facility (approximately $4.7M).

Service delivery and programs: The secretary reported progress on MOUD expansion and the implementation timeline for the medical psilocybin program, saying DOH expects to implement it one year earlier than previously planned. On CARA and substance-exposed newborns (Senate Bill 42), DOH said it is administering navigators and care coordination and reported current numbers: "Over the last year, 12 months, we've got current active care cases of 1,326," with about 479 categorized as higher priority exposures.

Questions from legislators: Committee members asked how DOH is measuring success for intervention programs and how opioid settlement funds are being used. DOH said it receives approximately $3.5 million of opioid settlement money and uses those funds for staff and tribal contracts for MOUD and overdose prevention; DOH cited contracts and direct service investments.

Next steps: DOH will provide additional budget detail and expects to continue coordinating with legislators on metrics tied to Senate Bill 42 and CARA implementation timelines.

Ending: DOH requested appropriations to sustain operational improvements and support statutory changes; the committee signaled interest in follow-up on metrics and capital project cost overruns.