SANTA FE, N.M. – Gov. Michelle Lujan Grisham signed a roughly $10.8 billion spending plan into law, but not before making some tweaks.

Lujan Grisham is flexing her line-item veto powers in 2025. Those allow her to remove certain parts of bills while still signing the rest into law.

It’s a big part of the state budget and capital outlay approval process, and the governor says her line item vetoes in 2025 reflect her concerns about long-term fiscal sustainability, timelines, or her administration’s priorities. 

She uses this phrase a lot: “The vetoed language inappropriately interferes with the executive managerial functions.” Basically, she thinks the Legislature is crossing the line into her territory when it comes to enforcing or administering laws. 

Although, when she vetoed funding for the newly-established Office of the Child Advocate, the governor said it not only interfered with her duties, but also the duties of the New Mexico Department of Justice where that new office is housed.

The governor also line item-vetoed provisions that conflict with the New Mexico Constitution, specifically Article 9, Section 14 which prevents the state from making donations to private corporations, or enterprises.

That’s why the governor vetoed funding for a Sundance Film Festival satellite and a super computing challenge.

But the governor also vetoed items she says are too restrictive, including one in the capital outlay bill directing money specifically toward improvements for compliance with the Americans with Disabilities Act.

The governor kept a 4% pay raise for most state workers and teacher, along with funding for water projects, behavioral health expansion and affordable housing.

This new state budget will do into effect this summer.