New Mexico would set aside $17 million to backfill the federal credits if they are not renewed, under legislation signed by the governor.
The Democratic-led Legislature met on Wednesday and Thursday to approved $162 million in state spending on rural health care, food assistance, restocking food banks, public broadcast and more.
Starting this year, New Mexico expects to lose about $200 million annually because of new federal tax cuts. But the state still has a large budget surplus thanks to booming oil production.
“When federal support falls short, New Mexico steps up,” Lujan Grisham said in a statement.
Many federal health care changes under Trump's big bill don’t kick in until 2027 or later, and Democratic legislators in New Mexico acknowledged that their bills are only a temporary bandage.