New Mexico Senate approves behavioral health bills, sending proposals to house
Legislation would establish regional behavioral health planning, create a $1 billion trust fund, and expand services statewide

Organ Mountain News report
SANTA FE - Three behavioral health bills passed the New Mexico Senate on Friday, advancing to the House of Representatives with bipartisan support. The legislation aims to address mental health and substance abuse challenges by restructuring regional planning, creating a long-term funding source, and expanding services statewide.
Senate Bill 3, the Behavioral Health Reform and Investment Act, passed 37-5. It would establish a Behavioral Health Executive Committee to coordinate planning across the state by creating regional behavioral health networks based on counties or judicial districts. The committee would oversee funding distribution based on regional assessments of existing services and gaps.
The bill also includes measures to strengthen the behavioral health workforce by tailoring recruitment efforts to the needs of each region.
“As we work to rebuild our behavioral health system from the ground up, we’re partnering closely with our courts to build a framework that includes all three branches of government and brings all the stakeholders to the table,” said Sen. Peter Wirth, D-Santa Fe. “This legislation, which we refer to as the ‘guardrails bill,’ will ensure that the money gets where it’s needed with oversight and accountability.”
Senate Bill 1, which passed 37-5, would establish a $1 billion Behavioral Health Trust Fund. The fund would be managed by the Health Care Authority, with annual disbursements supporting mental health and substance abuse treatment, intervention, prevention, and related infrastructure. The bill’s sponsors say the trust fund could also help secure additional matching funds from federal, local, and private sources. The legislation sets an annual distribution rate of 5% based on a rolling three-year average market value of the fund.
“The creation of this Behavioral Health Trust Fund represents a forward-thinking approach to addressing the state’s growing needs for mental health and substance abuse services,” said Sen. Elizabeth “Liz” Stefanics, D-Cerrillos. “By setting aside this substantial amount of funding, the state ensures a sustainable financial foundation for essential behavioral health services for years to come.”
Senate Bill 2, which passed 37-4, allocates $200 million to expand regional behavioral health services. The funding would be available for planning, crisis response, outpatient and inpatient services, mobile health units, behavioral health education, housing support, and reentry programs for individuals leaving corrections facilities. Eligible funding recipients would include state agencies, local governments, Tribes, and federally qualified health centers.
“SB 2 marks a transformative step forward in addressing the behavioral health needs of our communities,” said Sen. Benny Shendo, D-Jemez. “This funding will empower regions to tailor solutions that meet their unique challenges, ensuring more New Mexicans have access to the care and services they need and deserve.”
The three bills now move to the House for further consideration.