Lujan Grisham proposes $250 gas rebates for New Mexico taxpayers

Gov. Michelle Lujan Grisham proposed $250 rebate checks for all New Mexico taxpayers and said the state should use part of a projected $825 million windfall from higher oil prices. At AAA’s June 27 average of $3.872 a gallon, that payment would cover about 65 gallons of gasoline.

Lujan Grisham tied the revenue surge to higher oil prices after the Iran war and said that when state gains come at a direct cost to residents, New Mexico should share the proceeds. The New Mexico Legislative Finance Committee put the windfall at about $850 million through June 30.

The governor is in the final six months of her term, and any rebate plan would need a special session if lawmakers want to put checks in taxpayers’ hands before year-end.

New Mexico has done this before. In 2023, lawmakers approved $500 rebates for taxpayers. Two years earlier, after Lujan Grisham called lawmakers back to Santa Fe for a special session, the Legislature passed a $698 million relief package that sent $500 to single filers and $1,000 to joint filers in two installments. That measure also set aside $20 million for economic relief payments for non-filers, including seniors on fixed incomes and lower-income families.

Senate Finance Committee Chairman George Muñoz favors lasting tax-code changes, including lower personal income taxes or expanded tax credits, over another round of rebates. Other lawmakers are also considering whether the state should keep writing checks, or use the oil windfall for trust-fund investments tied to childhood, health care and behavioral health.