Governor taking on higher-visibility role as federal budget fight deepens

SANTA FE — Since returning to the United States last week from a trade mission to Asia, Gov. Michelle Lujan Grisham has been making the rounds to sound the alarm about possible federal budget cuts.

The governor on Tuesday described GOP proposals to reduce federal Medicaid spending as a “despicable effort” during a virtual press event with three other Democratic governors.

Before that, she made appearances on CNN and Bloomberg TV to push back against President Donald Trump’s trade and health care policies.

During Tuesday’s event with the governors of Kansas, Kentucky and Hawaii, Lujan Grisham said up to half of the more than 820,000 New Mexico residents covered by Medicaid — nearly 40% of the state’s population — could lose health care coverage if Congress approves a budget bill scaling back federal funding.

In addition, she said 46% of the nation’s rural hospitals are already struggling to stay open and could be shuttered if federal Medicaid spending is reduced.

“It is in fact an all-out assault on America’s health care system,” said the governor, who also warned of the harmful impact of Trump’s promised tariffs on imported prescription drugs.

State lawmakers in 2020 approved a bill allowing New Mexico to import prescription medications from Canada for resale to state residents. A state Department of Health spokesman said Tuesday no medications have been imported under the law yet, but the state is pursuing an importation program.

Lujan Grisham, who is scheduled to return to New Mexico on Wednesday after attending a Clinton Global Initiative event on reproductive health in New York City, has also previously voiced concern about possible federal budget cuts.

She said in February that proposed federal budget cuts to Medicaid and other programs could prompt her to call legislators back to Santa Fe for a special session before the end of this year.

But her recent media circuit indicates Lujan Grisham could be taking on a larger national role as a prominent Democrat speaking out about congressional Republicans’ health care votes.

The governor was among the candidates who were vetted last year by Kamala Harris’ campaign team as a possible running mate before Harris lost to Trump in the general election.

Her second term as governor ends in 2026, and Lujan Grisham has clashed with fellow New Mexico Democrats on the issues of crime and child welfare over the past year.

On the national level, Lujan Grisham said during the Bloomberg TV interview on Monday that she’s had recent conversations with Trump administration officials, including about veteran-related issues.

“My job is to create stability in every single relationship in the federal government,” she said, specifically citing her connections to U.S. Homeland Security Secretary Kristi Noem and Interior Secretary Doug Burgum, who are both former governors.

But she also said she is prepared to “punch above her weight class” when the Trump administration pursues policies that negatively impact New Mexicans.