New Mexico lawmakers to consider $300M virus aid plan Tuesday
SANTA FE, New Mexico — New Mexico lawmakers are drafting legislation aimed at providing about $300 million in direct economic aid for the unemployed, small businesses and emergency housing subsidies.
The proposal is aimed at providing a jolt of relief to a state economy reeling from a surge in pandemic infections and deaths. A renewed stay-at-home order has halted in-person activity at nonessential businesses through at least Nov. 30 and limits capacity at grocery stores, drug stores and hardware stores.
Democratic Gov. Michelle Lujan Grisham scheduled a one-day special session for Tuesday in hopes of delivering weekly supplemental unemployment checks of $300 shortly after Thanksgiving.
The statewide unemployment rate was 8.1% in October, well above the 6.9% national rate. New Mexico depleted its unemployment insurance fund in September and has begun borrowing money from the federal government to fulfill claims to residents who have lost their jobs.
Lawmakers say the proposed spending will be made possible by federal relief previously assigned to New Mexico. But ambitious relief efforts could have implications for state financial reserves, which may be needed later to prop up spending on basic services from public education to prisons during the economic downturn.
The Statehouse will be closed to the public as a precaution against virus transmission, with some lawmakers participating remotely. Webcasts are scheduled for floor debates and possible committee hearings in the Democratic-led Legislature.
“There is no way to have members of the public safely in the Capitol building,” Democratic House Speaker Brian Egolf said. “It is impossible at this point.”
Lawmakers are considering approving spending on vaccine storage and distribution infrastructure. Republicans in the House minority also are interested in approving spending to shore up testing capacity and speed up test results.
New Mexico is among four states selected by drugmaker Pfizer for a pilot program to refine its plans for deploying a Covid-19 vaccine before it receives authorization from federal regulators.
More than $1 billion in federal relief funds have shored up New Mexico's finances, with $750 million assigned to the state general fund during a June special session.
Lujan Grisham's administration allocated $178 million to city, county and tribal governments and related small-business grants. Local governments are racing against a Dec. 30 deadline to get the money into their communities.
“Unless local governments are more effective in using these funds before the deadline, the state will have to revert the unused money back to the federal government,” said Henry Valdez, a spokesman for the Finance and Administration Department. “The federal government can then redistribute New Mexico’s funds to other states, and many New Mexico communities, businesses and individuals will miss out on much-needed aid during this pandemic.”
