Advocates say PNM parent company's $400M stock sale to equity firm Blackstone disregards state law
—Santa Fe New Mexican
An environmental and economic advocacy group has filed a complaint with the State of New Mexico regarding the private equity firm looking to acquire the Public Service Company of New Mexico.
The Santa Fe New Mexican reports that the Albuquerque-based nonprofit Prosperity Works has submitted a brief to the New Mexico Public Regulation Commission. The complaint alleges that PNM’s parent company violated state law last summer when it issued $400 million in stock to a holding company owned by Blackstone Infrastructure. Blackstone is the private equity group looking to acquire PNM, which is the state’s largest utility provider. The complaint says the stock sale should have needed approval from state utility regulators.
In August of 2025, PNM’s parent company, TXNM Energy, and Blackstone jointly filed a request for the commission to approve Blackstone’s acquisition of PNM and a smaller company, Texas-New Mexico Power. The price tag of the deal is estimated at about $11.5 billion.
Prosperity Works and others have said the issues around the stock sale ought to throw regulatory approval of the deal into question. They say that the incident illustrates a willingness from Blackstone and its affiliates to flout state law.
Medical malpractice bill advances to House floor
—Olivier Uyttebrouck, Albuquerque Journal
A measure to rein in high-dollar medical malpractice awards in New Mexico is due to hit the state House floor for a vote, which could give the Senate a tight deadline for considering the complex issue.
Proponents portray the bill that emerged from the House Judiciary Committee on Wednesday as a key way to keep New Mexico from losing physicians but the controversy so far has focused on which hospitals in the state should benefit from reform.
The committee voted 10-0 Wednesday to advance a version of House Bill 99, filed by Rep. Christine Chandler, D-Los Alamos, who described the substitute bill as a compromise that emerged after talks broke down between hospitals, physician groups, trial attorneys and other stakeholders.
A key issue, which still is evolving, is how to limit punitive damages that are sometimes awarded in cases of reckless or willful misconduct for the state's largest corporate hospitals.
"There was a lot of discussion about what the cap should be for the larger systems and the like, and there were conversations between the hospitals and the lawyers as to what that should be," Chandler told the committee. "This bill sort of splits the difference."
Chandler said her bill would create a multitiered cap on punitive damages that varies according to the type and size of a medical clinic or hospital. She estimated the bill would cap punitive damages at about $1 million for independent physicians and clinics, $6 million for locally owned hospitals and $15 million for larger corporate-owned hospitals. All the caps would increase in tandem with the consumer price index.
Chandler said she drafted the substitute bill in consultation with Gov. Michelle Lujan Grisham, who supports House Bill 99 and has suggested calling lawmakers into special session if they fail to pass medical malpractice reform during the regular session, which ends Feb. 19.
Troy Clark, CEO of the New Mexico Hospital Association, said the lower $6 million cap on punitive damages likely will apply to five New Mexico hospitals, including Cibola General Hospital in Grants, Holy Cross Medical Center in Taos, Rehoboth McKinley Christian Hospital in Gallup and San Juan Regional Medical Center in Farmington.
The higher $15 million caps would apply to more than 30 hospitals statewide, including five Presbyterian Healthcare System hospitals and five Lovelace hospitals, Clark said. The higher cap also would apply to 11 post-acute hospitals, which are rehabilitation or behavioral health facilities, he said.
Clark said the Hospital Association supports the new substitute version of HB 99.
"We've been pushing for lower caps, obviously," Clark said. The $15 million cap is "kind of at the threshold of what the hospitals felt still made a meaningful difference in our ability to recruit and retain physicians. We still feel this is a meaningful bill to address the situation of our access-to-care crisis."
House Speaker Javier Martínez, D-Albuquerque, who voted for the substitute bill, said he is skeptical that limiting punitive damages will solve New Mexico's physician shortage.
"I am a little disappointed that (in) 2026 here we are looking for another solution to a problem that I think goes a lot deeper than medical malpractice," Martínez said. "I think that so much of that horror story goes well beyond this issue. I really hope that in 2029 we're not in the same situation trying to fix something again."
Trial lawyers also expressed disappointment with the substitute bill.
"We went into the session being told this was about protecting doctors, and then they pivoted and the big corporations said 'no deal unless we get the same protections,'" Albuquerque attorney Cid Lopez told the Journal.
Lopez, who has represented victims and families in medical malpractice cases, said the bill as written "really takes away the power of juries to hold those big corporations fully accountable."
Dr. Darren Shafer, president of Presbyterian Medical Group, said system officials appreciate Chandler's leadership and the bipartisan engagement that shaped the bill.
"Medical malpractice reform is complex, but this legislation reflects serious, good-faith work to address long-standing challenges that affect patients, clinicians, and access to care across New Mexico," Shafer said.
The committee's unanimous approval of the substitute bill also killed an amendment introduced last month by Rep. Liz Thomson, D-Albuquerque, that would have left unlimited punitive damages on larger corporate-owned hospitals while limiting damages for five smaller hospitals in the state. That amendment drew opposition from hospital and physician groups.
New Mexico currently has no limits on punitive damages, which has resulted in sizable damage awards against hospitals in recent years. Supporters of the caps say fear of punitive damages has driven up medical malpractice insurance premiums and discouraged physicians from practicing in New Mexico.
Unclear is whether limits on punitive damages will result in lower medical malpractice insurance premiums.
Chandler told members of the Judiciary Committee on Feb. 6 she was "very skeptical" that insurance costs for physicians and hospitals would decrease if the bill becomes law.
But the bill would allow hospitals, doctors and insurance companies to plan for risk because they would know what the maximum awards would be, except for uncapped medical expenses, she said.
"Does your car insurance ever go down? No," Chandler said. "Does your health insurance go down? Does house insurance ever go down, even if you have no incidents? No. But I think it will stabilize."
New Mexico state, teachers’ unions criticize state Senate axing 1% pay raise in budget
—Danielle Prokop, Source New Mexico
Four unions representing New Mexico teachers and state workers on Friday denounced pending cuts of raises for both groups from the state Senate budget.
While lawmakers on the New Mexico Senate Finance Committee have not yet released their version of the budget to the public, a draft presented Thursday evening to the committee discussed the cut.
“We recognize the challenges of balancing the state budget, but those challenges should not be resolved on the backs of the workforce that delivers essential services to the public every day,” the joint statement issued by American Federation of State, County and Municipal Employees Council 18; National Education Association; American Federation of Teachers and Communications Workers local 7076 stated.
The House’s version of House Bill 2, the state budget, earmarked $26 million for a 1% raise for all state workers, including public school and higher education staff. On Tuesday, members from the state workers’ union rallied for select public safety and fire personnel to receive a 6% additional pay raise to reduce turnover.
Those raises, however, won’t happen, Senate Finance Chair George Muñoz (D-Gallup) told Source NM on Friday, because the funds are needed to cover teachers’ insurance premiums.
In 2025, the state passed legislation requiring the state to pay 80% of state workers’ health insurance premiums. This year, lawmakers aimed to give teachers the same deal.
Muñoz noted that last year’s budget included a 4% raise across state, public school and university positions, and said that raises should be cut in the current budget to guarantee teacher’s health care costs are lowered.
“The unions are upset, but you get more out of an 80-20 split than a 1% raise,” Muñoz said.
Carter Bundy, a lobbyist for the state’s public sector unions, told Source NM Friday unions are in “full solidarity” for teachers to get a bigger share of health costs covered, but said lawmakers shouldn’t “pit” state workers against teachers and include both in this year’s budget.
“The house, governor and the LFC all found room for 1% increase across the board, including for K12 and state workers, and we would like to see that restored before the end of the session,” Bundy said.
Muñoz told Source NM there are tradeoffs in any budgeting process.
“At the end of the day I have to make the hardest decisions of them all. We made almost 300 changes from the budget sent over from the house,” Muñoz said. “If the unions are upset about the 1% raise, it would cut from the 80-20 for teachers — that’s the place we’d have to make the cut.”
Muñoz said the Senate Finance Committee’s version of the budget could be released on Saturday morning, but said some negotiations are still ongoing.
Luján, Heinrich vote against DHS funding - Cathy Cook, Albuquerque Journal
New Mexico’s U.S. senators voted against yearlong funding for the Department of Homeland Security on Thursday, alongside all but one Senate Democrat, pushing the federal agency closer to a shutdown.
Congress has passed annual funding for the majority of the federal government since the shutdown in November, but money for Homeland Security has become a point of conflict after videos of DHS agents killing protesters in Minnesota made international headlines and sparked more demonstrations.
Before funding DHS, Democrats have called for an end to "roving patrols" of immigration enforcement agents, tightened rules for warrants, a ban on agents wearing masks and a requirement for body cameras. They are also seeking a uniform code of conduct for ICE and all federal agents and for independent investigations of any misconduct.
“We now know that these agents were going into people's homes without securing warrants, arguably violating the United States Constitution and our rights as Americans as well,” said Sen. Ben Ray Luján, D-N.M. “What was being proposed, including body cameras, IDing yourself, is no different than what we see with local law enforcement. Local law enforcement across the country abide by these rules, and I don't understand why there's so much opposition from Republican colleagues to be able to do this.”
Along with Customs and Border Protection and Immigration and Customs Enforcement, DHS also oversees the Transportation Security Administration, the Federal Emergency Management Agency and the Coast Guard. If no funding bill passes, those agencies could see a lapse in funds by Saturday.
Homeland Security Secretary Kristi Noem said not funding DHS is "the wrong message to send to the world at this point in time" and jeopardizes airport security and the nation's cybersecurity.
"That’s telling the rest of the world the Democrat party doesn’t think that protecting America is safe," she said.
DHS did get an influx of money from the “One Big Beautiful Bill,” particularly when it came to money for ICE and CBP. Congress appropriated $75 billion for ICE last year on top of a more typical $10 billion annual appropriation.
The White House sent lawmakers a proposal for funding DHS this week, an offer Senate Majority Leader John Thune called “extremely serious.”
“On top of that, the White House has continued to show it’s committed to taking actions on its own, with (White House Border czar) Tom Homan this morning announcing the withdrawal of almost all agents from Minnesota,” Thune said in a Senate floor speech.
Luján said the White House proposal lacked details and commitment.
“The White House, in their responses to all of this, simply were not providing any information or details, and — as they always do — refused to commit to any changes whatsoever,” Luján said. “We did not see any of our Republican colleagues change their opposition to any reforms being included.”
Republicans also tried to pass a two-week continuing resolution to keep DHS temporarily funded, which Democrats blocked.
Democrats have advocated for a continuing resolution that funds every DHS agency except ICE, an idea Republicans did not get on board with.
"I will vote to fund TSA. I will vote to fund FEMA. I will vote to fund the Coast Guard. But I will not vote to give another dollar to ICE until they are committed to the rule of law,” Sen. Martin Heinrich, D-N.M., said in a statement.
Amid worries over data grabs, Senate approves bill curbing sharing info from license plate readers - Dan Boyd and Nakayla McClelland, Albuquerque Journal
Data from automatic traffic cameras used by New Mexico law enforcement agencies would be kept under tighter wraps under a bill that passed the state Senate on a 32-8 vote on Thursday.
The bill, Senate Bill 40, seeks to add New Mexico to a growing list of states, including Idaho, Montana and Georgia, that have passed laws seeking to protect personal data collected by license plate readers.
Some cities have also severed their contracts with companies that provide license plate cameras, but Senate Majority Leader Peter Wirth, D-Santa Fe, the bill's sponsor, said he's not in favor of such drastic action.
"This bill is an important step that allows law enforcement to continue using this technology ... but adds limitations," Wirth said during Thursday's debate.
The bill now moves on to the House, which would have to approve it before the 30-day legislative session ends Feb. 19 in order for the measure to land on Gov. Michelle Lujan Grisham's desk.
This year's bill was prompted by the American Civil Liberties Union of New Mexico learning that outside agencies used data from automatic license plate cameras to track people seeking reproductive and gender-affirming health care or for immigration enforcement, Wirth said.
In 2025, the Legislature passed a similar bill that prevented the Motor Vehicle Division from sharing information with private data brokers that would then be turned over to U.S. Immigration and Customs Enforcement.
Sen. Cindy Nava, D-Bernalillo, said in Thursday's debate that in an era of "unprecedented surveillance," a person's data is an extension of themselves and the bill would establish confidentiality while regulating the sharing of information.
While senators had several questions about language in the bill, most showed support for its basic premise. Some lawmakers even suggested expanding the bill further to create restrictions on the length of time that a driver's information is stored.
"Why are we selling people's personal information to a company in the first place?" Sen. Craig Brandt, R-Rio Rancho, asked fellow lawmakers. "We need to throw out this bill right now. We need to replace it with a bill that says none of this information will be sold and is private information of the private citizens of the state of New Mexico."
Brandt added that he would not support a "bill that goes halfway" and added that he believed it was an attack on the federal government.
Wirth responded by saying that in the future he hopes to dive deeper into the specifics of the issue, but described this year's measure as a good start.
He also said he believes the automatic license plate technology, which is used by the Albuquerque Police Department and other agencies, is useful to law enforcement. The bill does not stop the automatic license plate readers from being used and federal and out-of-state law enforcement agencies will still be able to access the information as needed, Wirth said.
Several law enforcement agencies have actively backed this year's legislation, with New Mexico State Police spokeswoman Amanda Richards saying the bill balances public safety needs with privacy protections.
"The department worked with the bill sponsor and stakeholders to ensure the legislation preserves law enforcement’s ability to use automatic license plate readers while addressing privacy concerns," Richards said in a Thursday email.
Meanwhile, several immigrant rights groups also celebrated the bill making it through the Senate, saying it addresses an essential gap that needed to be filled.
"We are so integral to this community and New Mexico has really sought to integrate immigrants fully into our public safety efforts and into our communities," said Marcela Díaz, executive director of Somos Un Pueblo Unido.
Díaz also said she felt as though the state was recognizing the importance of mixed-status families.
"I think that this is another step in the right direction and we are so very proud that the Senate took this step to ensure that our license plate information is also not going to be used," she said.
NM wildfire claims office director on ‘administrative leave’ following six-figure payout - Patrick Lohmann, Source New Mexico
Jay Mitchell, director of a multi-billion-dollar federal claims office for northern New Mexico wildfire victims, has been placed on “administrative leave” following revelations of a six-figure payout he received for smoke damage at his Angel Fire home, according to an email Source New Mexico obtained Thursday.
Mitchell and his wife Lisa received payments totaling more than $500,000 for smoke damage and business losses from the 2022 Hermits Peak-Calf Canyon fire through a $5.45 billion fund administered by the Federal Emergency Management Agency, according to documents obtained by Source New Mexico and New Mexico PBS.
Since Source first reported on those payments two weeks ago, calls have increased for Mitchell’s resignation, including from members of New Mexico’s congressional delegation and Gov. Michelle Lujan Grisham. A group of several dozen protesters gathered outside the Las Vegas branch of the claims office earlier this week, also calling on him to step down.
In a joint statement Thursday, U.S. Sens. Martin Heinrich and Ben Ray Luján, along with U.S. Rep. Teresa Leger Fernández, called the development a “step in the right direction to rebuild trust and provide relief for impacted families.” The New Mexico Democrats were the architects of the FEMA compensation program bill in Congress.
The statement notes “still outstanding questions” regarding the claims office and its operations and says the delegation “will continue pressing for accountability and stable, trusted leadership.”
In a separate statement, Leger Fernández, who represents the 3rd Congressional District in which the Hermits Peak-Calf Canyon occurred, said the delegations needs “accurate and timely information” about how many claims have been made, how much funding remains available and the timeline for paying outstanding claims.
“And of course, we need the office to comply with their legal duty to report to Congress so we can share that information with the public,” her statement said.“
Paul Judson, a Washington, D.C.-based FEMA deputy assistant administrator, wrote an email to claims office employees around 9:20 a.m. Thursday informing them that FEMA had placed the office’s program manager and deputy program manager, referring to Mitchell and his deputy Jennifer Carbajal on “administrative leave.”
Judson’s email does not provide reasons for or length of the administrative leave, but does note that,“This step does not reflect a finding of wrongdoing.”
According to the email, Juan Ayala, a “senior FEMA official,” is on-site effective immediately to oversee operations. According to Ayala’s LinkedIn profile, he currently works as public affairs director for FEMA’s Region Six headquarters in Dallas. Region Six includes New Mexico.
The office’s work of processing claims will continue “uninterrupted,” Judson wrote, and other “staff roles, responsibilities, and workflows remain unchanged.”
Source’s Jan. 28 story revealed that Mitchell, who has run the office since April 2024, and his wife received payments last July for their home and her business far from the wildfire perimeter in an area that his neighbors said was largely untouched in the wildfire.
Meanwhile, some wildfire victims are still awaiting payment nearly four years after the fire began, including those who lost their homes and whose businesses suffered.
Carbajal, the office’s deputy director, has held that role since the wildfire began. Source also obtained documents showing she accepted payments last August of about $27,000 in business losses for a company called Maia Consulting, Inc.
The documents show Carbajal dissolved the corporation at the end of 2022, shortly before she began work at the claims office. An archived version of Maia Consulting’s website described the company as a veteran-owned small business helping rural businesses embrace digital marketing and other technologies.
A claims office spokesperson, in a statement provided to Source on Thursday afternoon, said that, “at this time, there is no finding of wrongdoing” regarding improper payments at the office, and the office’s work continues.
“FEMA is fully committed to supporting the citizens of New Mexico impacted by the Hermit’s Peak-Calf Canyon fires. This is yet another mess we inherited from the broken Biden administration and are focused on delivering assistance with integrity and accountability,” the unsigned statement reads.
“FEMA has ZERO tolerance for wrongdoing or misappropriation of funds—every allegation is thoroughly investigated and taken seriously. Our priority and focus remain on supporting eligible claimants and ensuring all claims are handled fairly and transparently. We will not be distracted from our mission to support recovery and uphold the highest standards at all levels of the Claims Office.”
Judson’s email urges current claims office employees to avoid “speculation or distraction” and to focus their efforts on paying out claimants. The office has paid out roughly $3.4 billion of the $5.45 billion Congress awarded it, according to the latest figures from the office.
“We expect all employees to remain focused on serving claimants, to safeguard claimant privacy, and to conduct themselves professionally at all times,” Judson wrote. “Internal personnel matters should not be discussed externally and internal information should not be disseminated externally.”
Judson also promised that FEMA will communicate with employees as “next steps are finalized.”
1:25 pm
- This story has been updated to include statements from the congressional delegation and the FEMA claims office.
NM Senate passes bill to pay for universal child care - Joshua Bowling, Source New Mexico
The New Mexico Senate on Thursday voted 25-15 to pass a child care bill that would only require co-pays from higher-earning families under certain economic conditions like inflation and decreasing oil prices.
Sen. George Muñoz (D-Gallup) co-sponsored the bill after the House’s proposed budget included plans to require co-pays of families with household incomes at 400% of the poverty level. Gov. Michelle Lujan Grisham has previously criticized the House proposal and said that a mandatory co-pay for a limited number of New Mexicans is, by definition, not universal.
Senate Bill 241 would only require co-pays under specific signs of economic decline and would begin with families who make more than 600% of the federal poverty level.
For a family of three, 600% of the federal poverty level is $163,920, according to the U.S. Department of Health and Human Services.
In a Senate Finance Committee hearing Tuesday, Muñoz said the state could pull up to $1 billion from the Early Childhood Education and Care Trust Fund, which in September was worth nearly $11 billion, to address various costs. Elizabeth Groginsky, the Early Childhood Education and Care Department secretary, praised the bill at the Tuesday hearing and said it “advances the childcare system in the ways that we want to see to continue to get the excellent outcomes we’re already seeing.”
From the Senate floor Thursday, Muñoz said he believed the bill was necessary to help New Mexico’s families because “we live in a different era” in which both parents often need to work outside the home.
“The world spins at a much faster rate than it ever has,” he said. “As that happens, people need help. Do we want to be last in child safety among the 50 states?”
Republican senators took aim at the costs associated with universal child care, though.
“I’m concerned about what years four and five look like,” Sen. Nicole Tobiassen (R-Albuquerque) said. “It’s volatile and I don’t know that it’s responsible.”
Senate Republicans in a statement after the vote called the bill a “deceptive and wildly expensive program.” Republican senators unanimously voted against the measure Thursday afternoon.