When the 2018 Yazzie/Martinez decision declared New Mexico in violation of its constitutional obligation to provide a “sufficient” education, one of the court’s clearest conclusions was this: the state hadn’t been investing enough in its most vulnerable students.
In the years since, lawmakers and education officials have taken steps to change that. Now, with the 2025 Yazzie/Martinez Action Plan underway, it’s worth asking—how much money is actually going into public education in New Mexico?
FY2025 State Budget: A Historic $4.76 Billion for K–12
The state’s Fiscal Year 2025 (FY25) budget allocates $4.76 billion to K– 12 public education. That’s 47 percent of the entire $10.22 billion state budget, marking the largest dollar amount for education in state history.
That allocation includes:
• $4.2 billion in State Equalization Guarantee (SEG) funds— money distributed directly to school districts based on a funding formula. This represents the core funding mechanism for public schools.
• $299 million in “middle of the line” funding— used for specific purposes such as transportation, assessments, and categorical programs.
• $320 million in “below the line” discretionary funding— controlled by PED and used for initiatives like summer reading programs, career and technical education (CTE), educator fellows, and attendance interventions.
• $41 million in recurring funds to support universal school meals for all students.
The budget also includes a three percent salary increase for public school employees, building on past raises aimed at addressing teacher shortages and improving employment retention statewide.
A Five-Year Climb
To understand how far the state has come, consider this: in Fiscal Year 2021, New Mexico’s total education spending was $3.46 billion out of a $7.6 billion state budget. In FY25, $4.76 billion foes to education, with a state budget of $10.2 billion.
In just five years, the state has increased education funding by more than $1.3 billion, a 37 percent increase.
Back in 2021, the state’s total budget was about $7.6 billion, and $3.46 billion of that was spent on education. That means about 45 percent of all state spending went to schools.
In 2022, the state budget dropped slightly to $7.45 billion, but education funding stayed nearly the same at $3.44 billion— or 46 percent of the budget.
By 2023, both numbers went up. The state had an $8.48 billion budget, and $3.8 billion of that went to education. That’s about 44.8 percent of the budget, a decrease to spending. During this time, the state of New Mexico was struggling to gauge education as the COVID-19 pandemic impacted education and statewide testing to determine student proficiency in math and reading had stopped.
Then in 2024, the budget rose again to $9.4 billion, and schools received $4.17 billion, which was about 44.3 percent of the total.
This year, in 2025, the state passed its largest budget ever: $10.22 billion. Of that, a record $4.76 billion is going to public education.
That means nearly 47 percent of all state spending goes to education.
In just five years, New Mexico has increased education spending by over $1.3 billion. It’s the biggest commitment to public schools in state history— and it’s happening in direct response to the needs identified in the Yazzie/Martinez lawsuit.
In per-student terms, the state is now spending approximately $4,100 more per child than it did five years ago.
Targeted and Discretionary Investments
Since FY20, appropriations to below-the-line programs have increased by 734 percent, and categorical program spending has grown by 70 percent, according to Public Education Department analysis.
This shift reflects the legislature’s growing focus on targeted, flexible, and innovative funding, often tied to goals named in the Yazzie/Martinez ruling—such as structured literacy programs, culturally relevant education, and community school models.
In FY25 alone, discretionary funds have been used to support:
• $30 million for summer reading interventions
• $40 million for CTE and workforce pathways
• $20 million for educator fellowships and mentorship programs
• $5million for attendance success initiatives In addition, $50.7 million in universal meal funding was included in FY25, and was later supplemented with $7.8 million more in the current fiscal year to address cost overruns.
The Public Education Reform Fund (PERF)
In 2025, the state also began tapping the Public Education Reform Fund (PERF)—a multi-year investment stream designed to sustain long-term improvement efforts. Among the projects funded through PERF:
• $29 million for the Summer Literacy Institute
• $28.5 million for expanded CTE and career pathways
• $20 million for educator fellows
• $15 million for out-of-school learning and high-dosage tutoring
• $13.5 million for math achievement
• $6.3 million to support unhoused students These programs are aimed directly at the five pillars of the Martinez/Yazzie ruling: access to instruction, culturally relevant educators, support services, fair funding, and accountability.