SANTA FE — The New Mexico Legislature gave unanimous approval Tuesday to Senate Bill 101, legislation that would permanently extend a state program supporting hospitals that serve Medicaid patients across New Mexico.
SB 101 passed with unanimous bipartisan support, clearing the Senate 31–0 and the House 57–0.
The bill repeals the sunset clause in the Health Care Delivery and Access Act and ensures continued financial support for eligible hospitals that care for Medicaid members.
“Making this program permanent helps ensure hospitals across New Mexico have the stability they need to continue serving New Mexicans,” said Gov. Lujan Grisham. “This legislation protects access to care, strengthens accountability and keeps health care resources working for patients across our state.”
SB 101 makes one change to the existing law by removing the June 30, 2030 sunset clause, allowing the program to provide ongoing support for participating rural and urban hospitals.
“Removing the sunset allows this program to continue delivering real investments in health care services across New Mexico,” said Kari Armijo, cabinet secretary of the New Mexico Health Care Authority. “Hospitals must continue to meet strong quality improvement and reinvestment requirements, with the aim of improving access to care across New Mexico.”
The Health Care Delivery and Access Act plays an important role in supporting health care infrastructure and access to services for New Mexicans. By repealing the sunset clause, SB101 preserves the framework that allows the state to continue advancing efforts to improve access to care.
Originally approved by lawmakers in 2024, the Health Care Delivery and Access Act was created to support urban and rural hospitals using a funding structure that leverages federal dollars. In its first year, the program expects an estimated $896 million to be reinvested in New Mexico communities.
Federal changes passed July 2025 reduced funding levels for hospital programs like this nationwide. As a result, the program is expected to shrink to about one-third of its current size in the coming years. By passing SB 101, New Mexico has helped to protect the program from future federal changes that put it at risk of termination.
Hospitals will continue to be responsible for paying the tax that funds the program, making clinical quality improvements to receive payments, and investing funds back into New Mexico health care services.
Bill sponsors include Senators Elizabeth “Liz” Stefanics, Linda Lopez and Nicole Tobiassen and House Majority Leader Reena Szczepanski along with Representative Elizabeth “Liz” Thomson.
SB 101 now awaits consideration by the governor.
###
About the New Mexico Health Care Authority
The New Mexico Health Care Authority connects New Mexicans to the care and support they need to live healthy, full lives. The agency administers Medicaid, the Supplemental Nutrition Assistance Program (SNAP), the Low-Income Home Energy Assistance Program (LIHEAP), cash assistance, child support services, and behavioral health care across the state. HCA also oversees the State Health Benefits program for state employees and manages the Health Care Affordability Fund to help make coverage more affordable for working families. The agency licenses health care facilities, investigates complaints, and ensures providers deliver safe, high-quality care. In addition, HCA supports individuals with intellectual and developmental disabilities through a variety of home and community-based programs that protect health, safety, and human rights.