SANTA FE – The New Mexico Higher Education Department agency budget recommendation for Fiscal Year 2026 both sustains the tuition-free college programs that have led to growth in college enrollment statewide and funds new programs like Tribal Education Technical Assistance Centers to boost Native American achievement in the state.
The budget proposal also addresses New Mexico’s status as one of the nation’s worst states for adult literacy by dramatically increasing funding for adult education and adult literacy programs.
“This year’s budget builds upon the success New Mexico is witnessing in both the higher education and adult education sectors,” said Higher Education Secretary Stephanie M. Rodriguez. “We are ensuring that students not only have access to college and career training opportunities, but that they have the support they need to reach graduation day – whether that be a college degree or high school equivalency credential.”
The FY26 budget recommendation, which totals $186.5 million, maintains funding levels for the Opportunity Scholarship, which has contributed to rising enrollment rates statewide since its enactment. Students receiving the scholarship are 8 percent more likely to stay in school or complete their degree; additionally, the number of students in New Mexico earning career training certificates has increased by 39 percent.
Key proposed increases include:
- $3 million for adult education programs
- $1.25 million for high school equivalency credentials
- $2 million for adult literacy programs
- $4 million for the Higher Education Retention Fund to support student success services and address student basic needs
- $2.25 million for Tribal Education Technical Assistance Centers
- $200,000 for WICHE Loan-for-Service Program for New Mexicans seeking professional degrees that are not available in New Mexico, such as veterinary science, optometry and dentistry
- $500,000 for the University of New Mexico Dental Residency Program to allow for more clinical experiences
- $511,000 for the Graduate Scholars Fund
- $230,000 for the Minority Doctoral Loan Repayment Program
One-time funding appropriations include:
- $25 million for the Health Professional Loan Repayment Program
- $25 million for a faculty endowment at the University of New Mexico School of Medicine to supplement current salaries or hire new faculty members
- $25 million for a student endowment at the University of New Mexico School of Medicine to provide scholarships and stipends to New Mexico high school graduates accepted into the program
- $10 million for the Teacher Loan Repayment Program
- $10 million for the state’s Dual Credit Program
- $20 million for the Technology Enhancement Fund
- $10 million for cybersecurity support at public higher education institutions
- $30 million for deferred maintenance at higher education institutions via Building Renewal and Replacement funding
- $5 million for Equipment Renewal and Replacement funding
Tribal Education Technical Assistance Centers, enacted by 2023 legislation, will support Native American education and career pathways as well as develop culturally relevant curricula and materials for local education agencies and educators. The department’s budget provides $2.25 million in new funding for these centers.
The New Mexico Basic Needs Project has reported that a sizable portion of New Mexico college students are struggling to meet basic needs like stable housing and food security; to that end, the agency’s budget would establish a new $4 million fund to support student success and completion by way of new and enhanced programs at colleges and universities to provide for nutrition, shelter, academic advisement and more.
The agency’s budget would increase funding for adult education by 78 percent, or $3 million, to support an expanded portfolio of Integrated Education and Training Programs throughout the state, which help adult learners obtain their high school equivalency and career certifications simultaneously. The budget also includes a significant increase for adult literacy programs and free high school equivalency exam vouchers for New Mexicans which have historically been funded with federal relief funds.
A 10 percent increase for the WICHE “loan-for-service” program is a part of the budget recommendation, which provides financial assistance for students who enroll in select out-of-state professional programs that are not available in New Mexico, like veterinary medicine and optometry. Recipients of the program’s financial assistance are required to make a commitment to work in that field in New Mexico upon their completion of the program.
The agency budget recommendation also includes funding for four new full-time employees to support research, data collection, constituent services and literacy initiatives.
The New Mexico Higher Education Department also submitted a total of $155 million for several one-time appropriation requests ranging from support for health care education and workforce, teachers, the Dual Credit Program and public higher education institutions. To address critical health care needs in New Mexico, the agency is proposing more funding to sustain the nationally recognized Health Professional Loan Repayment Program and two $25 million endowments for the state’s only public medical school at the University of New Mexico.
Additionally, the agency is requesting enhanced cybersecurity support for New Mexico’s public higher education institutions, as well as funding to address deferred physical maintenance, also known as Building Renewal and Replacement funding. Research will also be supported via the Technology Enhancement Fund at $20 million (a state matching fund for critical research projects in medicine, education, agriculture, transportation engineering and other areas that directly benefit the state) and necessary equipment purchases through a $5 million appropriation for Equipment Renewal and Replacement funding.
For more information about the New Mexico Higher Education Department and its programs, visit hed.nm.gov. To learn more about New Mexico’s tuition-free college programs like the Opportunity and Lottery scholarships, visit reachhighernm.com or call the Financial Aid Help Line at (800) 279-9777.