NMDOT presents $1.3 billion FY 2026 budget 

SANTA FE – The New Mexico Department of Transportation (NMDOT) is presenting their final FY26 budget request to the Legislative Finance Committee (LFC) on Dec. 11, 2024. NMDOT receives funding from two main funding sources, the Federal Government and the State Road Fund. The total budget covers recurring operational costs, traffic safety, Transit funds and Federal Highway funds. NMDOT does not receive recurring General Fund appropriations. 

“This Legislative session, NMDOT’s focus will be on leveraging non-recurring funding, while deploying a strategy to increase recurring revenues that support the agency’s long-range infrastructure needs,” said Ricky Serna, NMDOT Cabinet Secretary. “Increased and predictable revenues will support the agency’s ability to build on its internal capacity and also encourage investments by New Mexico road contractors to ensure we can collectively achieve our mission.” 

Special Appropriations Requests ($350 million)  

• $175 million – Maintenance  

• $150 million – Construction 

• ​$15 million – Rural Air Service Enhancement 

• $10 million – Statewide Beautification 

Capital Outlay Requests ($61 million) 

• $31.2 million – Facility and Infrastructure Improvements 

• $20 million – Electric Vehicle Charging Infrastructure  

• $10 million – Heavy Equipment and Light Duty Vehicles​ 

Highlights of NMDOT $1.25 Billion FY 2026 Operating Budget   

• $526.6 million Federal Highway Administration for road infrastructure investments which includes acquisition of rights-of-way, planning, design, and construction to match other state or federal funds for projects. Appropriations made in this section may be used for identified, prioritized projects statewide. 

• $52.8 million from the Federal Transit and Administration (FTA) and National Highway Traffic Safety Administration (NHTSA) 

• $477 million from the State Road Fund, which supports all operational costs including salary, benefits, and other important initiatives, such as remodeling district offices to become more energy efficient.  

• $91.1 million for road maintenance and improvement projects that are necessary to preserve roadway integrity and maintain open highway access throughout the state system. 

• $53 million from the Transportation Project Fund to support projects on state roads. 

• $10 million for equipment to replace or upgrade faulty or deteriorating equipment. 

• $28 million from the Local Government Road Fund to support project priorities of local governments and tribes.  

• $11.5 million from the State Aviation Fund to improve the physical condition of the airport facilities.  

• $1.3 million for traffic safety programs to support core safety programs like occupant protection, motorcycle safety, anti-drunk, drugged, and distracted driving. 

    Program Budget (State Road Funds and Federal Funds): 

• Project, Design & Construction, request of $793.7 million – construction activities, Federal Highway Program, debt service, engineering services, local government fund and the transportation project fund.  

• Highway Operations, request of $300 million – district operating budget, maintenance activities, field supplies and rest area maintenance and improvements.  

• Business Support, request of $51.3 million – Office of the Secretary, Legal, Finance, Human Resources, Building and Grounds and Information Technology.  

• Modal Program, request of $106.3 million – Transit and Rail, Aviation, Ports of Entry, Traffic Safety and Transportation Regulation Division.