Top New Mexico lawmakers say they'll take deliberate approach to federal budget bill - Dan Boyd, Albuquerque Journal
As top New Mexico lawmakers digest the implications of a federal budget bill signed this month by President Donald Trump, they’re urging rural hospitals and public schools not to make rash decisions.
Many provisions in the Big Beautiful Bill dealing with Medicaid don’t take effect until 2027 or later, giving legislators and state officials time to prepare.
But that “proceed with caution” approach should not be confused with procrastination, said Rep. Nathan Small, D-Las Cruces, who said key legislative committees will likely spend the rest of this year studying the federal bill and planning a response.
“When we begin to fill gaps and holes that have been created by Republicans in Washington, D.C., cutting federal funding, we need to be very confident,” Small said during a break of the Legislative Finance Committee’s meeting on Tuesday in Albuquerque.
“The big picture with the federal budget and spending bill is it’s bad for New Mexico, and it gets much worse with time,” added Small, who is the LFC’s chairman.
Gov. Michelle Lujan Grisham’s administration has warned that six to eight rural hospitals could close over the next several years due to the federal bill’s Medicaid changes. State health officials have also predicted nearly 90,000 state residents could lose health care coverage, while more than 250,000 state residents could face new co-pays and increased administrative hurdles to remain enrolled. New Mexico has the highest percentage of Medicaid enrollees in the country, with nearly 40% of the population getting their healthcare from the program, a federal/state partnership.
LFC Director Charles Sallee told legislators Tuesday that staffers are still reviewing which spending reductions in the federal bill could be “backfilled” with state dollars.
A $10.8 billion state budget bill that took effect July 1 leaves about $3.5 billion in unspent cash reserves, which could be used to help soften the impact of the federal budget bill.
However, New Mexico could benefit from some provisions in the bill that were approved without a single Democrat in the U.S. Congress voting in support, Sallee said.
That includes additional funding for rural health care providers that could represent a “windfall” for the state, even though legislative officials are not yet sure exactly how much money New Mexico might receive, he said.
Sallee also pointed out some of the bill’s provisions could ultimately be nullified, saying, “Congress can undo what it just did.”
Lujan Grisham has raised the possibility of calling legislators back to Santa Fe this year for a special session focused on the federal budget bill and possibly other issues.
The governor’s spokeswoman, Jodi McGinnis Porter, said Tuesday a special session was “still on the table” but said an exact date has not been set.
House Speaker Javier Martínez, D-Albuquerque, said in a recent interview a special session might not be urgently needed, saying, “A lot of these cuts are phased in over several years, so we have time to prepare.”
Meanwhile, some Republican lawmakers have disputed Democrats’ claims about the federal bill’s impact in New Mexico.
In a recent letter, Reps. Mark Duncan, R-Kirtland, and Cathrynn Brown, R-Carlsbad, said the bill will provide tax relief to many New Mexicans by providing a tax exemption for Social Security benefits and expanding an existing child tax credit — from $2,000 to $2,200.
New Mexico also provides its own child tax credit and a tax exemption for Social Security income, though that exemption is only available to taxpayers who make under a certain annual amount.
The GOP representatives also took issue with the description of Medicaid funding changes as “cuts,” saying they would instead target waste, fraud and mismanagement in the joint federal-state health care program.
New Mexico has the nation’s highest rate of residents enrolled in Medicaid, with roughly 810,000 individuals signed up as of this month — or about 38.3% of the state’s population. Increased administrative hurdles and work requirements — at least 80 hours per month — for certain adult Medicaid recipients will likely prompt that figure to drop in the coming years, according to state officials.
While urging hospitals and schools not to make hasty decisions, Small said federal funding freezes targeting certain programs pose a more immediate threat to the state.
At least some of that funding — including for after-school and adult education programs — can be backfilled by state agencies without legislative approval using already appropriated state funds, Small said.
First measles case reported in Santa Fe; possible exposures at amusement park - Danielle Prokop, Source New Mexico
New Mexico health officials Tuesday confirmed Santa Fe’s first case of measles: an unvaccinated child who contracted the virus during travel. The latest case brings the state’s total number of cases to 96, since the outbreak began in mid-February.
Health officials also warned that people may have been exposed at an Albuquerque Amusement park last week during the following times and date:
- 11 a.m. – 8 p.m. on Thursday, July 17 at Cliff’s Amusement Park at 4800 Osuna Road NW.
Santa Fe makes the ninth county with identified measles cases, joining Chaves, Curry, Doña Ana, Eddy, Lea, Luna, San Juan and Sandoval counties.
New Mexico Department of Health officials urged any people recently at the location to check their vaccination statuses and report any symptoms that develop in the next three weeks to health care providers.
“Every new case, including those that are a result of travel elsewhere, is a reminder that measles is a highly contagious virus,” NMDOH Chief Medical Officer Dr. Miranda Durham said in a statement. “Thankfully New Mexicans are responding to the call to get a measles, mumps and rubella (MMR) vaccine, the best defense against measles.”
Health care providers say the vaccine is the only effective prevention against the spread of the highly contagious respiratory virus. Measles symptoms can develop between one to three weeks from exposure and include fever, cough, red eyes and a spotted red rash usually spreading across the face and across the body.
People can spread measles in the days before and after symptoms appear. Severe complications from measles, including pneumonia, occur in about one in five cases.
Intel to cut 227 jobs at Rio Rancho plant, ending weeks of speculation - Hannah Garcia, Albuquerque Journal
Intel Corp. will eliminate 227 positions at its Rio Rancho facility by September, according to a newly issued Worker Adjustment and Retraining Notification, bringing clarity to weeks of speculation over whether the New Mexico plant would be swept up in the company’s broader layoffs.
The news comes following the appointment of CEO Lip-Bu Tan, who announced nationwide cuts in April. It also follows a report from The Oregonian in June, citing a company memo, that Intel planned to lay off up to 20% of its factory workforce.
“I can’t say that it’s surprising that they’re having some moderate cuts here at the Sandoval County plant,” Sandoval County Manager Wayne Johnson said. “Obviously, we don’t want to see any cuts, but at the end of the day, Intel’s trying to work within its business model and be profitable as a corporation nationwide.”
Intel declined to share details on which positions are being affected. But, according to documents obtained by the Journal through an Inspection of Public Records Act request, the chipmaker began local layoffs on July 15.
Among the hardest-hit positions are manufacturing operations managers, module engineers and module equipment technicians, each facing double-digit cuts, according to the documents. Other roles, like process integration development engineers and facilities engineering managers, are also among the roles listed in the cuts.
“As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company,” an Intel spokesperson wrote in an email Tuesday. “Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution.
“We are making these decisions based on careful consideration of what’s needed to position our business for the future, and we will treat people with care and respect as we complete this important work.”
The company employs roughly 3,100 New Mexico employees, according to its website, with the latest round of layoffs reflecting around 7% of its local workforce. Estimated compensation for the first quarter of 2025, including salaries, bonuses, taxes and benefits, totaled more than $101 million, according to a jobs report.
Intel’s decision to make cuts comes as pressure mounts within the competitive semiconductor industry, where rivals like Nvidia Corp. have climbed the competitive ladder and Intel has fallen behind.
Last year, Intel eliminated 15,000 jobs, though no Worker Adjustment and Retraining Notification (WARN) notice was filed with the state at the time.
Johnson, who previously told the Journal that Intel had not been in contact about Rio Rancho plant layoffs, said his department found out about cuts around the same time the WARN notice was issued.
“We’re hoping that the reorganization at Intel nationwide doesn’t overly impact the job picture here (in) Sandoval County,” Johnson said. “We don’t expect it to, but you never know. This is business. Hopefully this will be the last of the cuts that we see in New Mexico.”
Rio Rancho houses one of Intel’s 10 manufacturing sites worldwide. The local plant was recently expanded through a multi-billion-dollar investment for its Fab 9 factory, a facility used for 3D packaging technology.
Rio Rancho Mayor Gregg Hull said while it’s disappointing to see layoffs, he believes that Intel remains “firmly committed” to the New Mexico facility.
“The investment they just made with over $3.5 billion in this particular plant — they’re not walking away from that,” Hull said. “Their commitment is still very strong here in New Mexico, and we’ve gone through these bumps before.”
This marks New Mexico’s second WARN notice this year. In May, owners of the Lea County Correctional Facility near Hobbs shut down, laying off 203 employees.
The Rio Rancho layoffs are part of a broader reduction in the company’s workforce. Since January, the company has issued WARN notices for roughly 4,500 positions at facilities in California, Arizona, Oregon, Texas and New Mexico, according to WARNTracker.com.
Shares of Intel closed at $23.24 on Tuesday, down 20 cents but nearly $10 off their 52-week high.
Disappointed by the news, officials from the Rio Rancho Regional Chamber of Commerce and the Sandoval Economic Alliance said Tuesday they stand ready to support affected employees by offering assistance through their offices.
“We are confident that the skills and trades these employees possess are in high demand and will be valuable to other local employers,” said Fred Shepherd, president and CEO of the Sandoval Economic Alliance. “We will continue working closely with Intel and our other local manufacturers to support their evolving needs and help ensure a strong economic future for our community.”
The Rio Grande runs dry in Albuquerque - Cathy Cook, Albuquerque Journal
In Albuquerque, much of the Rio Grande was a cracked riverbed Monday, a result of a record dry winter and legal restrictions on storing Rio Grande water.
The Rio Grande is fed primarily by snowfall in Colorado and northern New Mexico. When the snow melts in the spring, it runs into the river. As weather patterns change with less snow predicted in winters and the possibility of more extreme monsoon events in the summers, a dry river in the Albuquerque metro area might become a more common sight.
“When there’s no water in the river, and there’s not enough water to give water to all of these uses, life’s a lot harder,” said Jason Casuga, Middle Rio Grande Conservancy District CEO.
While the Rio Grande is dry for long stretches of the year south of Albuquerque, the river has rarely run dry in the Albuquerque metro area in recent decades. In 2022, the river ran dry for a 5-mile stretch in Albuquerque for the first time in 40 years, thanks to a winter of underwhelming snowfall and a lack of stored river water. The story this year is similar: not enough snow and little stored water to supplement the river’s flows.
“In general, we are seeing more dry years,” said National Weather Service meteorologist Matt DeMaria. “We’re seeing more variable years. So we’re kind of swinging back and forth between these very wet years and very dry years. And that is what’s unusual. With climate change, we’re not seeing as many near-normal years as we used to.”
Because of rising temperatures and climate change, New Mexico is expected to become more arid with more variation in weather over the coming decades, according to a 2022 report from New Mexico Tech. Rio Grande flows north of the Elephant Butte Reservoir are predicted to decrease 25% by 2072, according to the report.
In December through April, southern Colorado and northern New Mexico had record dry weather or snowfall in the bottom 10th percentile, according to DeMaria.
“We did have that mid-May snowstorm, which brought up to 3 feet or so in the northern mountains, which helped a little bit. But unfortunately, did not do a lot to help out from the extremely dry winter,” DeMaria said.
South of Socorro, river drying began in mid-April, according to the Bureau of Reclamation, and there were 20 miles dry south of Socorro and north of Elephant Butte as of early July.
Casuga believes that how often the river runs dry in the Albuquerque area will depend in part on choices the state makes about storing and conserving water.
“The river’s life. That’s why communities developed around here, and I think that’s something that we have to wrestle with,” Casuga said. “We need water to sustain our communities. But a lot of why people live here and enjoy living in this area is because of what the Rio Grande is, the habitat it creates, and the history on it of both agriculture and an ecology.”
As snow melts in the mountains, New Mexico’s water infrastructure is designed to capture and distribute spring run-off to communities and farmers along the Rio Grande. To keep water flowing regularly, several government agencies work together to store water in dams. When there is excess spring run-off, it can be stored and released later in the summer to keep the river flowing and water moving to New Mexico farms. When there isn’t much snow melt, there’s less water in the river to store or send downstream.
New Mexico is also bound by a legal agreement: the Rio Grande Compact, which determines how the river’s water is divided between Colorado, New Mexico and Texas. The amount of water each state gets varies depending on how much water is in the system in a given year. In wetter years, New Mexico is obligated to send a higher percentage of water down river. In drier years, New Mexico is obligated to send a lower percentage of water down river.
At present, New Mexico owes water under the Compact to Texas, to the tune of 125,000 acre feet, a debt that accumulated over several previous years. The water debt means New Mexico is not allowed to store any Rio Grande water.
“The drought is a big deal. But when you couple the drought with not having access to your greatest water management tool, which is being able to store water, that just makes the problem even worse. And most New Mexicans are just not used to that,” Casuga said.
New Mexico also gets some water from a different river system through the San Juan-Chama project. Water managers already released the San Juan-Chama water to keep the river flowing in June and early July. Now, there is no more stored water the state is allowed to send down.
Casuga would like to see the state reimagine how it manages water, with a new focus on capturing rainwater and preparing for floods.
“How do they help communities invest in infrastructure to route water that we get from rain and arroyos running back to the rivers and prevent those waters from damaging communities?” Casuga said.
In the near-term, New Mexico can expect more rainfall in the coming week. The end of July through the middle of August is peak monsoon season, DeMaria said, which means it’s also peak flash flood season. He encourages hikers, bikers or people enjoying a lake visit to check the weather before they go.
“We can get a lot of flash flooding this time of year, but there’s also concerns such as strong winds and hail and lightning too, which can be kind of a sneaky hazard as well,” DeMaria said.
NM U.S. Sen. Heinrich introduces bill to increase tribal access to clean water - Source New Mexico
According to federal data, compared with white households, Native American households are 19 times more likely to lack indoor plumbing. That figure jumps significantly for Navajo residents, who are 67 times more likely than other Americans to live without access to running water.
Citing this data, U.S. Sen. Martin Heinrich (D-N.M.) on Tuesday announced he and colleagues from Colorado, Democratic U.S. Senators Michael Bennet and John Hickenlooper, had introduced the Tribal Access to Clean Water Act.
“Nearly half of Native American households lack access to clean and reliable water supplies. That is completely unacceptable,” Heinrich said in a statement. “By addressing a significant backlog of infrastructure projects and removing barriers to federal programs that provide technical and financial assistance to Tribes, this legislation is an important step toward delivering clean drinking water to all families in Indian Country.”
The bill’s components include authorizing the United States Department of Agriculture to make grants and loans for technical and financial assistance, as well as for construction, and lays specific amounts over the next five years, including:
- increased funding authorizations for USDA’s Rural Development Community Facilities Grant and Loan Program by $100 million per year for five years;
- Increasing funding authorizations for existing programs of the Indian Health Service for water and sanitation facilities construction;
- and authorizing $90 million over five years for the Bureau of Reclamation’s existing Native American Affairs Technical Assistance Program.
Heinrich previously introduced the bill in 2021 with Bennet. Heinrich, Bennet and Hickenlooper also backed billions for tribal water projects in that year’s infrastructure package.
In a statement of support for the legislation, Anne Castle, co-founder of the initiative on Universal Access to Clean Water for Tribal Communities noted that “some of the starkest examples of the public health impacts from not having clean, running water in the home are right in our backyards,” such as “higher incidence of respiratory disease, gastrointestinal infections, diabetes, and cancer.”
“Water is a sacred resource given to us to protect,” Santa Ana Pueblo Gob. Myron Armijo said in a statement. “It is of the utmost importance that Tribes have access to clean water not only for personal consumption and economic development but also for cultural purposes. Many tribes in the Southwest rely on access to clean water to carry on our culture and traditions.”