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TUES: Governor pitches tax relief and more classroom time in budget recommendation, + More

New Mexico Gov. Michelle Lujan Grisham announced a plan on Wednesday to provide free tuition in all of the state's 29 public colleges and universities. The proposal still needs the approval of the state legislature.
Susan Montoya Bryan
/
AP
New Mexico Gov. Michelle Lujan Grisham

New Mexico governor pitches tax relief, more classroom time - By Morgan Lee Associated Press

New Mexico would use a surge in oil-related income to underwrite health insurance costs for educators, expand minimum classroom instructional hours at public schools and shore up access to health care and high-speed internet in remote areas, under budget recommendations issued Tuesday by Gov. Michelle Lujan Grisham.

The budget proposal from the newly reelected Democratic governor would increase annual state general fund spending by nearly 12%, to $9.4 billion, for the fiscal year starting July 1 and ending in June 2024.

The Democratic-led Legislature convenes next week to negotiate a state budget during a 60-day session. Leading legislators are scheduled to publish spending priorities later this week.

The state government expects there to be a multibillion-dollar financial windfall in the current and upcoming fiscal years, largely from surging oil production and high energy prices. Voters in November also approved increased annual withdrawals from a multibillion-dollar state trust to pay for early childhood education initiatives and K-12 public schools.

Lujan Grisham is proposing $1 billion in tax rebates that could provide direct payments of as much as $1,500 per household, along with $500 million in tax relief, in part through cuts in some income tax rates and lower statewide gross receipts taxes on sales and services.

Her budget proposal would devote $100 million to pay the individual cost of health insurance for educators throughout the state, though not their dependent family members.

The state already is investing heavily in early childhood education programs and teacher compensation in an effort to improve a public education system that ranks at the bottom of many lists for academic achievement. Results from the latest standardized tests also show just 26% of students in grades three through eight were proficient in math, while only 34% were proficient in reading.

Under the proposed budget, core state spending on public education would be tied to an expansion of minimum annual instructional hours at public schools — marking a new approach. In recent years, many school districts have turned down optional funding to lengthen school hours, the school year or both.

Lujan Grisham is recommending salary increases of 4% for both public school and state employees.

The governor also wants to devote more spending to housing initiatives and solutions to homelessness; police recruitment and retention; at-home visits and counseling to improve early childhood wellbeing; an expansion of rural health care facilities; and to establish public endowments for graduate medical school programs.

The budget recommendation "empowers the state to continue to take on new and innovative strategies that are disrupting the status quo, that help our children, our families, our schools, our small businesses and our entire economy," Lujan Grisham said in a statement.

Economists expect the state government's income for the upcoming fiscal year to be nearly $12 billion. That revenue would exceed current annual general fund spending obligations by $3.6 billion, or 43%.

Lujan Grisham's budget recommendations include $10.2 million set-aside for construction of a reproductive health care clinic in southern New Mexico that would offer abortion services.

Across the nation, many states have built historic cash surpluses with help from federal pandemic aid allocations and increased revenue on recent sales and income tax collections. Those surpluses may soon be tapped to cover tax cuts and greater spending on priorities such as infrastructure and education.

Though most states can afford it, financial experts are nonetheless urging caution because of concerns the U.S. could slip into a recession.

Crews battling fire near northern New Mexico burn scar - Associated Press

Authorities say a fire has broken out near a wildfire burn scar in northern New Mexico, closing traffic on one highway.

The Mora County Sheriff's Office said on its Facebook page that crews have been working to control the blaze since it was reported Tuesday afternoon.

According to the National Weather Service in Albuquerque, satellites detected fire hot spots on the eastern fringe of the Calf Canyon/Hermits Peak Fire burn scar.

The sheriff's office has shut down traffic both ways on Highway 434 near mile marker 2.

The Weather Service estimates the fire is between 5 and 10 acres. It's been fueled by winds that are between 40-50 miles per hour.

The burn scar is a remnant of the largest wildfire in state history. The government-sparked wildfire started as two controlled burns that merged.

It went on to scorch more than 530 square miles of the Rocky Mountain foothills.

Impacted residents are still dealing with how to afford premiums for insurance coverage for homes and possessions lost in the fire.

New Mexico appointee resigns from powerful regulatory panel - By Susan Montoya Bryan Associated Press

One of New Mexico Gov. Michelle Lujan Grisham's recent appointees to a powerful utility regulatory commission has resigned, citing a lack of education qualifications.

The Democratic governor announced Brian Moore's resignation Tuesday, saying she is filling his spot with a principal analyst from Sandia National Laboratories who has worked on grid modernization and energy storage projects.

James Ellison Jr. has nearly three decades of experience in electric utility operations and power markets and has multiple degrees from Clemson University, the Massachusetts Institute of Technology and Stanford University.

The makeup of the Public Regulation Commission recently changed due to a constitutional amendment that turned the elected body into one in which the governor appoints members from a list of finalists chosen by a nominating committee.

Ellison was among the 15 finalists whose names had been forwarded to the governor.

The new commission will have a number of pivotal cases to hear over the next year, including deciding a billion-dollar rate case involving Public Service Co. of New Mexico, the state's largest electric utility.

The commissioners also may have to revisit a contested merger between PNM and Avangrid, a U.S. subsidiary of global energy giant Iberdrola.

Ellison, a registered independent, said in his application letter that he knows what it takes to keep the lights on and vowed to be fair and impartial.

"The transition to renewable energy needs to be handled carefully in order for reliability to be maintained," he wrote. "While ensuring the affordability of rates is a key goal, the commission must also allow utilities to have the resources and tools needed to succeed."

Moore, a former state lawmaker who once served on the Renewable Energy Transmission Authority board, submitted a letter of resignation to the governor less than two weeks after his appointment. The Republican stated he did not meet the statutory educational qualifications for the job.

The governor's other two appointees are Patrick O'Connell and Gabriel Aguilera, both Democrats.

O'Connell, an engineer with more than two decades of experience, previously worked for PNM as the utility's director of planning and resources before becoming the interim clean energy director at Western Resource Advocates.

A graduate of New Mexico State University, Aguilera worked for the Federal Energy Regulatory Commission since 2007. He most recently served as a senior policy advisor for FERC's Office of Energy Market Regulation.

Buu Nygren sworn in as next Navajo Nation president - By Felicia Fonseca Associated Press

Buu Nygren was sworn in Tuesday as the next president of the vast Navajo Nation, a job that will test his ability to make good on promises to deliver water, electricity and broadband to tens of thousands of residents who don't have it.

Nygren beat out incumbent President Jonathan Nez in the tribe's general election by about 3,500 votes. The office heavily intersects with the federal government, as do other tribes that receive federal funding for services like housing, health care, education and public safety. The Navajo Nation also owns property in D.C.

Nygren was joined by his wife and child as he took the oath of office during a ceremony that included an introduction that highlighted the challenges he faced growing up and later academic and business successes that helped him ascend as the youngest person to hold the tribal presidency.

Nygren stood in front of a wall made of woven Navajo blankets as he addressed the crowd in his native language of Diné. He went on to say his administration's mission will be to bring basic services, better roads and improved public safety to the Navajo Nation.

"I will not hesitate. I will do whatever it takes to make sure that our people have a chance, our people have an opportunity to make something of themselves. That's all they want," he said, adding that growing up he had someone believe in him and he wants his fellow Navajos to know that he believes in them.

Nygren, 36, had never held political office before now, though he was a vice presidential candidate in 2018. His vice president, Richelle Montoya, is the first woman in the position.

The inauguration took place at an indoor arena in Fort Defiance, just north of the tribal capital of Window Rock. It will be followed by a public luncheon at the fairgrounds in Window Rock, a gospel celebration, a song and dance, a comedy show, a pow wow and an inaugural ball.

The Navajo Nation is the largest Native American reservation in the U.S. at 27,000 square miles. It stretches into parts of New Mexico, Arizona and Utah. Its population of around 400,000 is second only to the Cherokee Nation of Oklahoma.

Nygren brought an energy to the presidential race that resonated with voters, campaigning with his wife, former Arizona state Rep. Jasmine Blackwater-Nygren. He had a flair for rising and falling speech and created a signature look with his hair tied in a traditional bun, a wide-brimmed black hat, blue trousers and a lighter blue, long-sleeved shirt.

Nygren is half Vietnamese but never knew his father. He was raised on the Utah portion of the reservation by his late mother in a home without electricity or running water, he said. He has a background in construction management and has said he expects tribal citizens to hold him accountable as president.

Nygren pledged to work closely with the 24 members of the Navajo Nation Council who also were sworn in Tuesday along with other elected officials. About one-third of the council will be women — a record number.

Some of the women delegate's priorities include infrastructure, addressing social ills and generational trauma, bolstering law enforcement, managing a budget and ensuring a continued focus on the epidemic of missing and slain Indigenous people.

"I know that most of us as women are going to have that natural indication to love our people, to put our people first, to understand there's a stronger responsibility to protecting our homes, meaning the Navajo Nation," said Shaandiin Parrish, who was elected to the council.

Returning Delegate Amber Kanazbah Crotty said she's looking forward to having difficult conversations where tribal lawmakers can confront problems, learn from shared experiences and examine the challenges that lead to families being victimized and services not delivered to Navajo people.

One thing should not be expected of women leaders, she said.

"Although nurturing is part of our teaching, we cannot hold the emotional baggage of others," Kanazbah Crotty said. "What I mean by that is the expectation shouldn't be that as women leadership, we're here to fix all the issues."

Nez and the previous council laid the groundwork for infrastructure projects using money the tribe received in federal coronavirus relief aid. But Nygren has said those decisions may need to be revisited. Nez worried any changes would jeopardize the tribe not meeting deadlines for spending the money.

In one of his last actions, Nez vetoed legislation Monday to expand oil and gas exploration and development, including for helium, on the reservation. He said the affected communities hadn't reached consensus, and concerns over profit-sharing and health went unresolved.

Endangered Mexican wolf treks further north in New Mexico - By Susan Montoya Bryan Associated Press

An endangered Mexican gray wolf has roamed beyond the species' recovery area into the more northern reaches of New Mexico, reigniting a debate over whether the predators should be confined to a certain stretch of the southwestern U.S. as wildlife managers work to boost the population.

The U.S. Fish and Wildlife Service said Tuesday that members of the recovery team have been tracking the lone female wolf and have notified ranchers in the area, although they say it's not a threat to human health or public safety.

Wolf-livestock conflicts have been a major challenge of the reintroduction program over the past two decades, with ranchers saying the killing of livestock by wolves remains a threat to their livelihood despite efforts by wildlife managers to scare the wolves away and reimburse some of the losses.

With news of the wolf traveling north of Interstate 40 in New Mexico, state and federal wildlife officials have been reminding people that Mexican wolves are protected under the federal Endangered Species Act and that hazing or harassing the predators is not allowed, unless the wolf poses a threat to human safety.

Collared wolves have trekked north of I-40 only a handful of times since 2015, when the Mexican Wolf Experimental Population Area was established, according to the Fish and Wildlife Service.

One of the more well-documented cases involved a wolf that was captured, relocated and later found dead after heading north again. In 2022, there were reports that another female lived for months west of Albuquerque until she moved into Arizona and then back into southwestern New Mexico.

In the latest case, the wolf numbered 2754 dispersed from the Rocky Prairie pack at the end of 2022.

"We are monitoring f2754's movements while working with our partners to evaluate management options," agency spokeswoman Aislinn Maestas said Tuesday.

Environmentalists have been fighting in federal court to overturn a requirement that the Fish and Wildlife Service capture wolves that roam north of I-40.

In court documents, environmental groups have argued that using the interstate as the northern boundary for wolf recovery effectively curbs natural dispersal and cuts off access to the Grand Canyon and Southern Rockies. They pointed to the two regions as essential for establishing another population to meet recovery goals.

The Mexican wolf is the rarest subspecies of gray wolf in North America. According to the most recent survey released in early 2022, there were at least 196 Mexican wolves in the wild in New Mexico and Arizona. It marked the sixth straight year the population had increased.

There is also a small population of wolves in the wild in Mexico.

U.S. officials said they were preparing to begin this year's survey in Arizona and New Mexico in the coming weeks.

Deadline draws near for comments about how FEMA will distribute billions in NM fire recovery aid - Marisa Demarco, Source New Mexico

The Federal Emergency Management Agency is deciding how New Mexicans will go about seeking compensation after being hurt or losing property because of the massive wildfire up north last year.

Billions of dollars are on the line, destined for families that suffered as a result of the Hermit’s Peak-Calf Canyon Fire, which began as two prescribed burns ignited by the United States Forest Service.

The deadline for submitting public comments is Friday, Jan. 13.

FEMA made some mistakes when it rolled out the first round of relief as the fire still burned, so people are wondering about how the agency will manage $3.9 billion allocated by Congress for New Mexico. The sum could have a huge impact in the region — it’s about one-third of the state’s entire projected budget for the next fiscal year (around $11.99 billion as of December, according to economists with the Legislative Finance Committee).

Echoing many community members’ concerns, commenter Joe Summers on Dec. 5 took issue with unclear language on FEMA’s website.

“This is all too confusing and haphazard for victims to navigate with any confidence and certainty they will receive attention required to fully state details of their losses and receive appropriate compensation,” he wrote.

New Mexico’s entire congressional delegation last week also submitted a letter outlining changes they want to see.

Among their concerns: Rural and tribal communities in the area rely on fishing, gaming and timber-cutting. Much of that became impossible after the fire. Compensation should cover subsistence resources, the letter states, so people can continue their traditional ways of life.

FEMA is holding job fairs — including one on Tuesday, Jan. 10 — to hire people who can help others navigate the claims process or who will review claims. They should be members of the local community, the delegation said, and they should be bilingual.

The proposed rules specify that people impacted by the fire will be compensated, but substantial damage came from floods rushing over charred land, spilling out from clogged waterways, unhindered by the vegetation that would normally slow the water down or create a barrier.

“We recommend you specifically reference flooding, mudflow, mold, and debris flow as a cause of injury and as a damage that can be compensated,” New Mexico’s representatives and senators told FEMA in their letter.

It could also be hard for people to show that flooding was a result of the fire, they added, especially if everyone isn’t working off the same map.

Though the feds have high-resolution imaging of fire damage but wouldn’t share it with someone trying to prove damage to his property, Source NM reported in November. Residents even set up their own plane flight over the burn scar to try and map the area themselves.

“FEMA should develop a simple process or map to assess whether flooding in particular areas is the result of the fire and remove the burden” from people filing claims, the delegation’s letter stated.

At public meetings about the rules for distributing the money, people who’ve lost property to the fire raised an issue with the proposal limiting compensation to 25% for lost trees. That cap is a holdover from the Cerro Grande Fire in 2000 that affected people in Los Alamos, many of whom lived on smaller residential lots.

But 22 years later, the largest fire in New Mexico history consumed 530 square miles of forested land, often used through generations for farming and ranching — or even growing Christmas trees.

“Most residents in Mora/San Miguel depend on their trees for firewood, etc.,” Yolanda Cruz wrote in her comment for FEMA about the tree-value cap in the proposed rules. “Knowing that the trees will not return in our lifetime is a huge loss.”

A 25% limit doesn’t square with the effort that will be required to restore the environment; the delegation agreed.

“Capping compensation for reforestation at 25% of the award does not take into account the degree of damage,” the letter stated. Plus, the proposed rules also say someone from FEMA would have to inspect a person’s property to decide whether trees were used for landscaping or business, they said, slowing down the process.

The delegation also said the agency should also be flexible in weighing proof of ownership.

Some papers may have burned in the fire. Since the region is rural, and phone and internet service can still be extra spotty in the fire’s aftermath, access to public records is limited.

In other scenarios, they wrote, land and homes in the region changed hands between family members over generations without the typical documentation.

If FEMA miscalculates and overpays someone, the proposed rules say the agency should try to get that money back.

But this could mean that people harmed by the fire would hesitate to even try and recover damages “due to a fear that if the agency makes a mistake, they could be held liable for repayment,” New Mexico’s representatives and senators said in their letter. “FEMA has already faced significant skepticism from the community over its process and the creation of the Claims Office, and deepening those concerns does not benefit FEMA or the victims of these fires.”

Instead, the delegation said, the agency should not try to claw back possible overpayments — or establish a short timeframe for doing so.

Notably, the D.C. officials didn’t call for FEMA to appoint an independent claims manager who hails from New Mexico, which has been a sticking point for many commenters.

Hector Balderas, former N.M. attorney general, submitted written comments and objections on behalf of the state at the end of December, and that’s the first item listed. Balderas specified that the independent claims manager should be an attorney in the state, or a retired judge.

“An independent claims manager will increase participation in the claims process here,” Balderas wrote. “FEMA has not yet established a strong sense of confidence in New Mexico’s citizens … ”

Angela Gladwell, the FEMA official in charge of the claims office, told Source New Mexico in mid-November that the agency had decided to move forward without bringing in an outside claims manager. She declined to comment on how that decision was made or why.

Suspect emerges in shooting at New Mexico official's home - By Susan Montoya Bryan Associated Press

Authorities in New Mexico's largest city said a suspect believed to be linked to at least one of the shootings at or near the homes or offices of several elected officials was in custody Monday, but they declined to release his name.

Albuquerque Police Chief Harold Medina said the man was being held on unrelated charges and that detectives were still awaiting the results of several outstanding search warrants filed in the investigation.

"We're just waiting to get a return on some of the information to ensure that everything we have, that the case we're building is as strong as possible and to see what other aspects are involved," Medina said.

Authorities declined to say what charges the man was being held on.

They did confirm, however, that officers seized a firearm linked to the suspect that was used in the shooting at a home, but have yet to determine whether it was connected to any of the others, which occurred between early December and early January.

No one has been injured in the shootings, which come amid a rise in threats to members of Congress, school board members, election officials and other government workers around the nation. In Albuquerque, law enforcement has been struggling to address back-to-back years of record homicides and persistent gun violence.

In the latest case to come to light, Albuquerque Democrat Javier Martinez, the incoming speaker of the state House, inspected his home following reports last week of gunshots fired toward the homes of other officials or in the vicinity of their offices.

Police went to Martinez's home after he discovered what he thought was damage from gunfire heard in early December. Detectives said they located evidence of a shooting.

Martinez said in a statement he was grateful he and his family were safe.

"We have been working closely with the Albuquerque Police Department as they investigate this act of gun violence at our home," he said. "I share the anger of my fellow elected officials and all those who have been targeted by such senseless acts of violence."

Martinez, the former majority floor leader, will be in a new leadership role when the Democratic-led Legislature meets for a 60-day session beginning next week.

Public safety and gun control are expected to be among the top issues as the chorus of residents who don't feel safe in Albuquerque and elsewhere has reached a fever pitch.

Albuquerque Mayor Tim Keller said during a news conference there's a difference when elected officials are involved.

"These are individuals who participate in democracy, whether we agree with them or not, and that's why this act of violence I think has been so rattling for so many people," Keller said. "Again, regardless of their background or regardless of their belief ... those elected officials deserve to be able to do their job as part of American democracy without fear."

The shootings began in early December when eight rounds were fired at the home of Bernalillo County Commissioner Adriann Barboa, police said. Days later, someone shot at former Bernalillo County Commissioner Debbie O'Malley's home.

Technology that can detect the sound of gunfire also indicated shots in the vicinity of New Mexico Attorney General Raul Torrez's former campaign office. Police found no damage.

Multiple shots also were fired at the home of state Sen. Linda Lopez — a lead sponsor of a 2021 bill that reversed New Mexico's ban on most abortion procedures — and in a downtown area where state Sen. Moe Maestas' office is located. Maestas, an attorney, co-sponsored a bill last year to set new criminal penalties for threatening state and local judges. It didn't pass.

Both Democrat and Republican state lawmakers have called on the public to provide information that might help law enforcement.

The eruption of gunfire in Albuquerque on any given day is not unusual. The police department began using the ShotSpotter detection system in 2020 in areas where data showed violence was prevalent.

As of last October, police reported having nearly 9,000 ShotSpotter alerts since the beginning of 2022. Of those, the department said more than 1,200 helped lead to the identification of dozens suspects and victims.

Some have criticized reliance on the technology. A 2021 Associated Press investigation, based on a review of thousands of internal documents, confidential contracts and interviews with dozens of public defenders in communities where ShotSpotter has been deployed, identified a number of serious flaws in using the technology as evidentiary support for prosecutors.

Albuquerque police did not respond to a request Monday for updated information on the number of detections for the past year or the number of reports in which gunfire struck homes or businesses in the city.

Nygren to be sworn in as next Navajo Nation president - By Felicia Fonseca Associated Press

Buu Nygren will be sworn in Tuesday as the next president of the vast Navajo Nation, a job that will test his ability to make good on promises to deliver water, electricity and broadband to tens of thousands who don't have it.

Nygren beat out incumbent President Jonathan Nez in the tribe's general election by about 3,500 votes. The office heavily intersects with the federal government, as do other tribes that receive federal funding for services like housing, health care, education and public safety. The Navajo Nation also owns property in D.C.

Nygren has said he'll largely keep his focus local.

"We're not here for notoriety, we're not here to be in the spotlight," he told The Associated Press during election season. "We're here to get to work and make sure out elders can live out the rest of their lives with the necessities they need."

Nygren, 36, will be the youngest to hold the tribal presidency and has never held political office, though he was a vice presidential candidate in 2018. His vice president, Richelle Montoya, will be the first woman in the position.

"I never thought this wasn't my place, that this wasn't something I couldn't do," Montoya said after the election. "This feeling will continue with the generations after me as they make a decision to lead the nation."

The inauguration will take place at an indoor arena in Fort Defiance, just north of the tribal capital of Window Rock. It will be followed by a public luncheon at the fairgrounds in Window Rock, a gospel celebration, a song and dance, a comedy show, a pow wow and an inaugural ball.

The Navajo Nation is the largest Native American reservation in the U.S. at 27,000 square miles. It stretches into parts of New Mexico, Arizona and Utah. Its population of around 400,000 is second only to the Cherokee Nation of Oklahoma.

Nygren brought an energy to the presidential race that resonated with voters, campaigning with his wife, former Arizona state Rep. Jasmine Blackwater-Nygren. He had a flair for rising and falling speech and created a signature look with his hair tied in a traditional bun, a wide-brimmed black hat, blue trousers and a lighter blue, long-sleeved shirt.

Nygren is half Vietnamese but never knew his father. He was raised on the Utah portion of the reservation by his late mother in a home without electricity or running water, he said. He has a background in construction management and has said he expects tribal citizens to hold him accountable as president.

Nygren pledged to work closely with the 24 members of the Navajo Nation Council who also will be sworn in Tuesday along with other elected officials. About one-third of the council will be women — a record number.

Some of the women delegate's priorities include infrastructure, addressing social ills and generational trauma, bolstering law enforcement, managing a budget and ensuring a continued focus on the epidemic of missing and slain Indigenous people.

"I know that most of us as women are going to have that natural indication to love our people, to put our people first, to understand there's a stronger responsibility to protecting our homes, meaning the Navajo Nation," said Shaandiin Parrish, who was elected to the council.

Returning Delegate Amber Kanazbah Crotty said she's looking forward to having difficult conversations where tribal lawmakers can confront problems, learn from shared experiences and examine the challenges that lead to families being victimized and services not delivered to Navajo people.

One thing should not be expected of women leaders, she said.

"Although nurturing is part of our teaching, we cannot hold the emotional baggage of others," Kanazbah Crotty said. "What I mean by that is the expectation shouldn't be that as women leadership, we're here to fix all the issues."

Nez and the previous council laid the groundwork for infrastructure projects using money the tribe received in federal coronavirus relief aid. But Nygren has said those decisions may need to be revisited. Nez is worried any changes would jeopardize the tribe not meeting deadlines for spending the money.

In one of his last actions, Nez vetoed legislation Monday to expand oil and gas exploration and development, including for helium, on the reservation. He said the affected communities hadn't reached consensus, and concerns over profit-sharing and health went unresolved.

Biden, López Obrador open Mexico meetings with brusque talk - By Colleen Long And Maria Verza Associated Press

Mexican President Andres Manuel López Obrador challenged U.S. President Joe Biden to end an attitude of "abandonment" and "disdain" for Latin America and the Caribbean as the two leaders met on Monday, making for a brusque opening to a summit of North American leaders.

The comments were a stark contrast to the public display of affection between López Obrador and Biden shortly before, as they smiled and embraced and shook hands for the cameras. But once the two sat down in an ornate room at the Palacio Nacional, flanked by delegations of top officials, it didn't take long for tensions to bubble to the surface.

Most of the summit's work will be handled on Tuesday, when the two leaders and Canadian Prime Minister Justin Trudeau are to hold hours of talks. Migration, both legal and illegal, and border security will be key topics.

On Monday, López Obrador challenged Biden to improve life across the region, telling him that "you hold the key in your hand."

"This is the moment for us to determine to do away with this abandonment, this disdain, and this forgetfulness for Latin America and the Caribbean," he said.

He also complained that too many imports are coming from Asia instead of being produced in the Americas.

"We ask ourselves, couldn't we produce in America what we consume?" he said. "Of course."

Biden responded by defending the billions of dollars that the United States spends in foreign aid around the world, saying "unfortunately our responsibility just doesn't end in the Western Hemisphere." And he referenced U.S. deaths from fentanyl, a drug that flows over the border from Mexico.

While both men pledged to work together, it was a noticeably sharp exchange, on full display before reporters. They met privately for about an hour before having dinner with Trudeau and their wives.

The meeting is held most years, although there was a hiatus while Donald Trump was U.S. president. It's often called the "three amigos summit," a reference to the deep diplomatic and economic ties between the countries, but new strains have emerged.

All three countries are struggling to handle an influx of people arriving in North America and to crack down on smugglers who profit from persuading migrants to make the dangerous trip to the U.S.

In addition, Canada and the U.S. accuse López Obrador of violating a free trade pact by favoring Mexico's state-owed utility over power plants built by foreign and private investors. Meanwhile, Trudeau and López Obrador are concerned about Biden's efforts to boost domestic manufacturing, creating concerns that U.S. neighbors could be left behind.

Biden and López Obrador haven't been on particularly good terms for the past two years either. The Mexican leader made no secret of his admiration for Trump, and last year he skipped a Los Angeles summit because Biden didn't invite the authoritarian regimes of Cuba, Venezuela and Nicaragua.

However, there have been attempts made at thawing the relationship. Biden made a point of flying into the new Felipe Angeles International Airport, a prized project of the Mexican president even though it's been a source of controversy.

The airport, which is expected to cost $4.1 billion when finished, is more than an hour's drive north of the city center, has few flights and until recently lacked consistent drinking water. However, it's one of the keystone projects that López Obrador is racing to finish before his term ends next year, along with an oil refinery, a tourist train in the Yucatan Peninsula and a train linking Gulf coast and Pacific seaports.

The two leaders rode into Mexico City in Biden's limousine. López Obrador was fascinated by the presidential vehicle known as "the beast," and he said Biden "showed me how the buttons work."

In a notably warm comment, the Mexican president described the two leaders' first encounter of the trip as "very pleasant," and he said "President Biden is a friendly person."

The U.S. and Mexico have also reached an agreement on a major shift in migration policy, which Biden announced last week.

Under the plan, the U.S. will send 30,000 migrants per month from Cuba, Nicaragua, Haiti and Venezuela back across the border from among those who entered the U.S. illegally. Migrants who arrive from those four countries are not easily returned to their home countries for a variety of reasons.

In addition, 30,000 people per month from those four nations who get sponsors, background checks and an airline flight to the U.S. will get the ability to work legally in the country for two years.

On Monday, before the summit began, López Obrador said he would consider accepting more migrants than previously announced.

"We don't want to anticipate things, but this is part of what we are going to talk about at the summit," López Obrador said. "We support this type of measures, to give people options, alternatives," he said, adding that "the numbers may be increased."

Mexico would likely also require an increase in those receiving work authorization in the U.S. in order to take back more migrants who are being expelled.

Jake Sullivan, Biden's national security adviser, cautioned that nothing was decided yet.

"What we need is to see how the program announced last week works in practice, what if any adjustments need to be made to that program and then we can talk about taking the next steps," he said.

On his way to Mexico, Biden stopped in El Paso, Texas, for four hours — his first time at the border as president and the longest he's spent along the U.S-Mexico line. The visit was highly controlled and seemed designed to counter Republican claims of a crisis situation by showcasing a smooth operation to process migrants entering legally, weed out smuggled contraband and humanely treat those who've entered illegally.

But the trip was likely to do little to quell critics from both sides, including immigrant advocates who accuse the Democratic president of establishing cruel policies not unlike those of his hardline predecessor, Republican Donald Trump.

The number of migrants crossing the U.S.-Mexico border has risen dramatically during Biden's first two years in office. There were more than 2.38 million stops during the year that ended Sept. 30, the first time the number topped 2 million.

On Monday afternoon, López Obrador formally welcomed Biden at the Palacio Nacional, the first time since 2014 that Mexico has hosted a U.S. president.

In a display of solidarity, the first ladies of the U.S. and Mexico delivered the same speech, alternating between Jill Biden in English and Beatriz Gutiérrez Müller in Spanish.

"We believe that poverty is not destined by God, but the product of inequality," Jill Biden said. "We know that the poor deserve to live better and are working with compassion, every day, to improve lives for everyone."

Earlier in the day, Jill Biden met with women from the fields of education, art and business, most of them recipients of U.S. cooperation programs or scholarships.

"Do whatever you want but teach others," she said.

Biden is expected to follow up his first trip to Mexico as president with another to Canada, although it has not yet been scheduled.

A senior Canadian official, who spoke on condition of anonymity because not authorized to discuss the matter publicly, said Canada is working with Americans on a visit in the near future.