Medical malpractice reform and mental health commitment changes clear both chambers; universal child care bill awaits final Senate vote

Organ Mountain News report

SANTA FE - Two of Gov. Michelle Lujan Grisham’s top priorities of the 2026 legislative session have cleared both chambers of the New Mexico Legislature, while a universal child care proposal is one procedural vote away from reaching her desk.

The Senate approved medical malpractice reform Tuesday in House Bill 99, and the House approved Senate Bill 3, which expands the state’s ability to compel mental health treatment for people deemed a danger to themselves or others. Both measures now head to the governor for signature.

Lawmakers also approved Senate Bill 241, which would establish a universal child care system in New Mexico. The bill returns to the Senate for final approval of House changes before it can be sent to the governor.

The governor said the measures represent cornerstone priorities of her final legislative session.

“These weren’t easy lifts,” Lujan Grisham said in a statement. “They required months of negotiation, good faith and a willingness to put New Mexicans first.”

Medical malpractice reform

House Bill 99 won Senate approval on a 40-2 vote after weeks of negotiations among the Governor’s Office, medical providers, attorneys and legislative leaders.

The bill sets new limits on punitive damage awards in malpractice cases, including caps of about $900,000 for independent physicians, $1 million for independent outpatient clinics and $6 million for locally owned hospitals. Larger hospital systems and affiliated outpatient facilities would face higher limits set at two and a half times those amounts.

Supporters say the changes aim to lower malpractice insurance costs and make it easier to recruit and retain doctors in New Mexico, which has long faced provider shortages.

The governor said the legislation will help address those shortages and improve patient access to care.

Universal child care

Lawmakers also advanced Senate Bill 241, which would expand access to child care statewide and move New Mexico toward a universal system available to all families.

The proposal allows annual withdrawals of up to $700 million from the state’s $11 billion early childhood education trust fund to support the program while preserving the fund’s long-term stability.

The legislation also ties participating providers to the state’s wage and career ladder framework for early childhood workers, intended to raise pay and create clearer professional pathways. Families with fewer financial resources would receive priority access to subsidized child care slots.

The bill now awaits final Senate approval of House amendments.

Mental health commitment standards

Senate Bill 3, which cleared the House on Tuesday, revises the state’s standards for involuntary civil commitment for people with mental illness who pose a danger to themselves or others.

The legislation updates definitions used to determine when intervention is warranted and is intended to give authorities clearer guidance when responding to high-risk situations.

The governor said the bill will provide families and communities with additional tools to intervene when someone’s mental illness presents a serious risk.

Once signed, the measures would mark major policy changes in health care, child care and behavioral health during the governor’s final legislative session.