SANTA FE, NM – As the 2026 legislative session entered its final days, lawmakers moved quickly to finalize a mitigation package tied to HB 9’s expected impacts on detention-dependent communities – including Cibola County, the Village of Milan and the City of Grants – while repeatedly acknowledging uncertainty about what exactly will happen at facilities affected by the new law.
The mitigation effort centered on Senate Bill 273, originally drafted as a twoyear “hold harmless” plan for communities facing potential losses in gross receipts tax, property tax, utility revenue and other costs if HB 9 leads to reduced ICE-related detention activity. After a fast-moving series of committee hearings, bill splits, and late House amendments, the Legislature ultimately approved a revised approach that reduced the mitigation window to one year.
A shifting mitigation package: SB 273 and SB 274
During a Senate Finance Committee hearing earlier this month, lawmakers began debating SB 273 as a direct response to concerns raised by local officials in Cibola, Torrance and Otero counties. As initially discussed publicly, the SB 273 draft included funding for the Cibola County area and neighboring communities, including appropriations for Cibola County, Milan and Grants, along with money for Estancia and Otero County.
In Senate Finance, lawmakers also emphasized that SB 273 included requirements and triggers – including proof/notification provisions tied to impacts – and a clawback mechanism to prevent payments if a local government is still receiving the same revenue it is being “held harmless” for.
As the bill moved, officials and lawmakers also referenced changes being discussed outside the publicly posted version. In later House committee discussion, lawmakers described a split in the governor’s requested items, with additional appropriations moved into a separate vehicle, SB 274, described during hearings as a package containing the governor’s other funding requests.
House Appropriations takes up SB 273 and Reshapes the Bill
On the evening of Feb. 18, the House Appropriations and Finance Committee heard SB 273.
During that hearing, committee members reviewed both the “hold harmless” concept and the mechanics of how the appropriations would work if detention activity changes force communities to absorb financial hits.
House leaders discussed concerns that a twoyear appropriation could leave money “stranded” because of uncertainty about outcomes, and moved toward a one-year approach. A proposed amendment reduced SB 273’s mitigation timeline from two fiscal years to one and adjusted multiple dollar amounts accordingly. Committee discussion also included questions about the “transportation” language for Cibola County, and lawmakers acknowledged they did not have full information on inmate counts during the hearing.
House members questioned whether it would make more sense to replace lost revenue directly rather than fund transportation costs, but the explanation given in the hearing framed the transportation piece as an emergency measure if facility changes require Cibola to house prisoners elsewhere.
House members also raised questions about tribal detention arrangements and reimbursement dynamics, and staff indicated followup would be provided.
“Not a Bailout,” “Stopgap,” and a Split within Cibola’s Delegation
On Feb. 18, the Senate debated SB 274 on the floor as part of the broader mitigation discussion. During debate, Sen. George Muñoz emphasized, “This is not a bailout,” and described the plan as temporary spending meant to address immediate risk.
Sen. Angel Charley, who represents Cibola’s East and voted YES on House Bill 9, spoke in support of funding for affected communities, describing the situation as a moment for a “reset” and emphasizing long-term needs such as infrastructure, broadband and workforce development.
Sen. Craig Townsend described the package as a “stopgap” and “barely a fix,” arguing the Legislature created the situation and that the mitigation did not fully address bond obligations and other liabilities.
Debate also included questions about whether facilities hold only ICE detainees and how prison populations have changed. Muñoz and other senators described detention operations as involving multiple categories of detainees and contracts, and acknowledged that impacts and timelines vary by location.
Senator William Soules repeatedly asked Munoz if there were staffing changes at the Cibola County Correctional Center as a result of increased ICE population. Munoz told him there have not been, but Soules continued to insutate the employees of CCCC are ICE agents, that is not accurate the 184 members of staff are Cibola residents or live just across the county line in the most rural reaches of McKinley County.
House Passes Sweeping Changes, Senate Concurs Before Adjournment
As the final day of session approached and action accelerated, the House advanced SB 273 with changes and passed the bill 56–8, according to floor updates from the Roundhouse.
Both of Cibola’s representatives voted YES for SB 273. Rep Martha Garcia, who represents Cibola’s West in House District 6, has consistently held strong for Cibola, voting NO on HB 9 and YES for SB 273.
Representative Michelle Pauline Abeyta, who represents Cibola’s East in House District 69, voted YES for SB 273 and YES on HB 9.
The bill then returned to the Senate for concurrence.
During the Senate discussion, Sen. Townsend questioned whether the bill treated Republican-leaning counties differently than Democratic-leaning counties. Muñoz responded that it did not and said, “we all got cuts.”
Sen. Bill Sharer criticized the framing of the bill title, arguing the problem is not simply lost revenue but lost jobs, calling the title “offensive.”
In the final vote, the Senate concurred with the House amendments 22–18, approving the House version that limits mitigation funding to one year instead of two. The Cibola County delegation again split: Sen. Angel Charley voted YES and Sen. George Muñoz voted NO due to the limits put in the bill.
The Senate concurrence occurred in the final hours before the Legislature adjourned.
What this Means for Cibola County, Milan and Grants
For Cibola County residents, SB 273 represents the first major attempt by the Legislature to attach state dollars to local warnings that HB 9 could trigger a financial shock if it forces CCCC to close.
However, the final version approved by lawmakers narrows the time horizon for mitigation funding to only one year, increasing pressure on state agencies and local governments to act quickly if detention- related activity changes begin affecting budgets.
Local officials have repeatedly warned that job losses and revenue changes could ripple through the county’s economy and municipal services – especially in Milan and Grants – while supporters of HB 9 have argued that New Mexico should not participate in civil immigration detention contracting through public bodies and that federal enforcement will continue regardless of state contracting policy.
Governor Michelle Lujan Grisham now has until March 11 to sign the legislation or let it be pocket vetoed, meaning it will die. HB 9 was already signed into law, in the first package of bills passed by both the House and the Seante.
All of Cibola’s Legislative seats are up for re-election this year, filing day is March 10 at the Cibola County Clerk’s Office, the only requirement is age and actually living in the district you intend to represent.