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We ensure that New Mexicans attain their highest level of health by providing whole-person, cost-effective, accessible, and high-quality health care and safety-net services.
Updates about Federal Changes
The New Mexico Health Care Authority (HCA) is actively assessing federal changes and actions to address any impact they may have on New Mexico. HCA will continue supporting New Mexicans attain their highest level of health and well-being.
Current status:
September 29, 2025
A new federal law (H. R. 1) was enacted in July 2025 that will significantly affect key programs that support people in New Mexico, including the Supplemental Nutrition Assistance Program (SNAP) and the state’s Medicaid program. These changes are expected to shift more cost and responsibility to the state, putting additional pressure on already stretched systems.
The new law and other federal changes will also reduce access to affordable health coverage through BeWell, with thousands of New Mexicans projected to lose or forgo Marketplace health insurance.
Key Impacts
SNAP: About 1 in 5 New Mexicans rely on food benefits. Under the new law, New Mexico will need to contribute an estimated $203 million annually to maintain current service levels.
Medicaid: Covers about 1 in 4 New Mexicans, including 294,566 children as of August 2025. Medicaid could see federal funding losses exceeding $8.5 billion over the next decade due to changes in provider payments.
BeWell/Marketplace health insurance: Without state support through the Health Care Affordability Fund (HCAF), between 15,300 and 27,100 New Mexicans could lose their Marketplace coverage due to federal changes. However, HCAF programs and policy adjustments are projected to limit losses to between 6,600 and 12,000 people.
What New Mexicans should know:
- People should continue to apply for and use the benefits and services they qualify for. There is no need to wait.
- The bulk of the federal changes have not yet taken effect. No large-scale cuts to services, no layoffs, and no budget reductions are happening now at the Health Care Authority because of the new federal budget.
- HCA is developing implementation guidance and awaiting additional direction from federal agencies. The bill is complex, and we are committed to fully and clearly communicating future impacts.
- HCA will share information and updates before anything changes with the benefits and services New Mexicans receive.
- At the heart of HCA’s mission is the belief that all New Mexicans deserve the chance to live healthier, more secure lives. We know that health, food, housing, and financial stability are essential to the individuals, families, and communities we serve. These changes present serious challenges, but HCA is committed to supporting people in New Mexico.
Supplemental Nutrition Assistance Program (SNAP)
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Medicaid
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Health Care Affordability Fund
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Special Session 2025
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