SANTA FE — House Republican leadership is calling on the Legislative Council to consider suing Democratic Gov. Michelle Lujan Grisham over what they describe as unconstitutional use of emergency reserve funds and line-item veto authority.

In a letter dated April 14 to House Speaker Javier Martinez and Senate President Pro Tempore Mimi Stewart, Republican leaders requested that two agenda items be added to the Legislative Council’s April 17 meeting: one addressing potential litigation over the governor’s use of State Operating Reserve funds for emergency executive orders, and a second targeting her line-item veto actions in the 2026 general appropriations bill, House Bill 2.

The letter was signed by House Republican Leader Gail Armstrong, R-Magdalena, House Republican Whip Alan T. Martinez, R-Bernalillo, and Caucus Chair Rebecca Dow, R-Truth or Consequences.

Reserve Funds

Republicans allege the Lujan Grisham administration has drawn more than $350 million from the State Operating Reserve over the past two years to fund emergency executive orders at $750,000 each, bypassing the Appropriations Contingency Fund, which they say is the legally designated account for such expenditures.

The letter states that the Legislative Finance Committee and Legislative Council Service have concluded that the reserve fund transfers were made without explicit statutory authority. The Department of Finance and Administration has disputed that interpretation.

The Republican leadership also noted that the governor vetoed House Bill 180 during the 2026 session, legislation that would have revised the statutory framework governing emergency reserves and disaster spending. They argue that without legislative action or court intervention, the practice will continue in future emergencies.

Line-Item Veto Disputes

The letter also accuses Lujan Grisham of exceeding her constitutional line-item veto authority in HB 2, citing a March 11 Legislative Finance Committee memorandum that identified multiple vetoes the Republicans say contradict New Mexico Supreme Court precedent.

The letter cites two New Mexico Supreme Court precedents to support its veto challenge.

In 1974’s Sego v. Kirkpatrick, the court held that the partial veto is a negative power only — a governor cannot use selective deletions to create new legislation. In 2011’s Stewart v. Martinez, the court voided a partial veto that left behind an incomplete and unworkable statute.

Republicans argue several of Lujan Grisham’s HB 2 vetoes violate both standards.

Among the examples cited in the letter: a $2 million LFC appropriation was reduced to the phrase “for a performance,” a $3 million UNM health sciences appropriation for an actuarial study was trimmed to read only “For healthcare,” and a $500,000 DFA appropriation for a juvenile justice study was pared to “For the implementation of juvenile justice.”

Republicans also flagged the governor’s veto of language governing a $60 million Early Childhood Education and Care Department appropriation, saying the resulting language broadens the fund’s use beyond the Legislature’s stated intent of building a wage and career ladder for childcare workers.

The letter further highlighted a $7.7 million CYFD Protective Services earmark that the governor vetoed, which Republicans said was designated to draw down federal matching funds for programs that protect at-risk children. The veto comes amid ongoing scrutiny of CYFD following a state Department of Justice report on the agency’s child welfare failures.

“The reason this usurpation of the Legislature’s power of the purse continues is because the legislative branch has never fought back,” the letter states.

The Legislative Council, a bipartisan panel of legislative leaders, is scheduled to meet on April 17. It was not immediately clear whether the Democratic majority leadership would agree to add the items to the agenda.