State announces $700 million in higher education improvements

SANTA FE — New Mexico will direct $700 million into college and university infrastructure starting this fall, as the Higher Education Department begins a multiyear rollout of capital outlay funding approved by the state Legislature. 

The investment will fund new labs, training facilities and campus upgrades at institutions statewide.

Gov. Michelle Lujan Grisham signed the funding package this year alongside new state infrastructure mechanisms that give colleges and universities a clearer, faster path to plan large-scale projects.

"When we invest in education, we invest in the long-term success of our state," Governor Lujan Grisham said. "These capital improvements will modernize facilities, expand capacity and create safer, more efficient learning environments that support student success for generations to come."

Since taking office, Gov. Lujan Grisham has supported more than $2 billion in capital outlay funding for New Mexico's public higher education institutions, special schools and Tribal colleges, representing one of the largest sustained investments in higher education infrastructure in the state's history.

"These investments are not just about building and renovating facilities and infrastructure," saidHigher Education Secretary Stephanie M. Rodriguez. 'They are about creating safe, efficient and high-quality learning environments where students can thrive. Coupled with New Mexico's Opportunity Scholarship and Lottery Scholarship programs, these investments ensure the state's colleges and universities can enroll, educate and retain students who will earn degrees and credentials while strengthening New Mexico's workforce now and into the future."

This year's Senate Bill 240, the Statewide Capital Outlay Projects bill, authorized more than $1.25 billion statewide for local infrastructure, public safety improvements and community projects, including $330.5 million dedicated to higher education institutions. Those investments will fund a wide range of projects across New Mexico, from ambulance training simulators at San Juan College to water treatment learning systems at Santa Fe Community College and numerous other facility improvements that support student success.

Lawmakers also approved House Bill 248, the General Obligation Bond package, which will go before New Mexico voters this November. The bond proposal includes $391.8 million for senior center upgrades, academic, tribal and public library resource investments, and facility and infrastructure investments at higher education institutions throughout the state.

Among the most significant investments is the University of New Mexico School of Medicine, the largest single state capital outlay investment in New Mexico history. During the 2026 legislative session, Gov. Lujan Grisham and the Legislature dedicated $546 million toward construction of the new facility, building on the $30 million appropriated in 2024 for planning and design. The project will help expand medical education capacity and strengthen New Mexico's healthcare workforce for decades to come.

House Bill 8 also passed during the 57th Legislature, establishing the Higher Education Major Project Fund, a new funding source that supports large scale capital projects, student housing, student life and athletic projects at New Mexico's public higher education institutions, including tribal colleges, outside the traditional higher education capital outlay process. 

"Gov. Michelle Lujan Grisham's support of more than $2 billion in capital outlay funding demonstrates an unprecedented commitment to New Mexico's higher education system," saidHigher Education Department Chief of Staff Gerald Hoehne. "These investments are not simply about constructing or renovating buildings, they are strategic investments to help students succeed. Years of planning through our statewide capital outlay process have helped identify the projects that will have the greatest impact, creating modern learning environments that attract, educate and retain students while supporting the workforce needs of New Mexico for years to come."

For more information about the New Mexico Higher Education Department and its programs, visit hed.nm.gov.