Los Alamos Faces Fiscal Uncertainty Amid Progress on Housing, Broadband

Los Alamos County closed its review of 2025 acknowledging a year of disruption rooted largely in shifts at the federal level, but officials also pointed to substantial forward movement on long-standing local priorities. The county’s finances were hit when the Laboratory’s budget flattened after years of growth; gross receipts taxes, which comprise 72 percent of the county budget, are projected to fall 14 percent in fiscal 2025. In response, the Council voted to raise the gross receipts tax rate by five-eighths of a percent effective July 1, 2026, and issued conservative FY27 budget guidance that seeks flat departmental budgets except for essential inflationary adjustments, while directing a 10 percent reduction in non-labor spending categories.

The federal environment also produced operational disruptions last year: the longest government shutdown on record led to furloughs of federal employees and curtailed or closed activities in local parks for more than a month, and an anticipated FEMA funding commitment remains outstanding. Those national developments underscore the county’s exposure to external political dynamics and the importance of local fiscal resiliency.

Against that backdrop, County staff compiled an extensive list of accomplishments tied to the five goals and 22 objectives of the strategic leadership plan. Major infrastructure and economic-development measures moved forward. The Council approved a $40 million bond for a Community Broadband project intended to deliver an open-access fiber network to support residents, businesses, education, and emergency services, and it funded a grant to San Ildefonso Pueblo for a middle mile fiber optic line designed to reduce future communications outages after four disruptions this year.

Housing approvals included an 87-unit deed-restricted affordable studio project on Ninth Street, a mixed-use development on 20th Street expected to bring roughly 285 market-rate units plus 25,000 square feet of retail, a purchase-sale-development agreement with Servitas for about 380 affordable and market-rate homes on the A8-A parcel along DP Road, and the start of leasing at the 149-unit Hill apartments in November. To bolster local commerce, the Council formed a working group with the Local Business Coalition and adopted the East Downtown Los Alamos Metropolitan Redevelopment Area Plan, while implementing a Small Retail Local Economic Development Act process.

Communication and engagement remain priorities. The county continues to solicit feedback through surveys, town halls, and public meetings, and has asked the Parks and Recreation Board to review the Brewer Arena project to expand opportunities for public input. Staff have also documented lessons learned from two major infrastructure efforts and deliberately delayed some decisions to ensure broader community comment.

For residents, the immediate effects will include a modest tax increase and tight fiscal controls intended to preserve core services as the county advances broadband, housing, and business support. The coming year will test whether these measures and new projects can mitigate the risks of federal funding volatility while delivering tangible benefits to local families and institutions.