U.S. Sen. Ben Ray Luján introduced legislation last week that could bring billions in infrastructure improvements to New Mexico’s two national laboratories, which employ more than 33,000 workers and contribute over $8 billion annually to the state’s economy.
The Restore and Modernize Our National Labs Act of 2025 would authorize $30 billion in federal funding for long-overdue maintenance projects and infrastructure improvements across the Department of Energy’s National Laboratory system. Los Alamos and Sandia National Laboratories in New Mexico would be among the primary beneficiaries of the proposed investment.
The timing is critical for New Mexico. The Trump administration’s proposed fiscal year 2026 budget includes $2.75 billion in cuts to national laboratories, according to recent congressional testimony. Energy Secretary Chris Wright told senators in June he was “very open” to expanding lab budgets despite the proposed reductions.
“Across the country, our National Labs – including Sandia and Los Alamos in New Mexico – have positioned the U.S. as a global leader in cutting-edge research and scientific innovation,” Luján said in a press release announcing the legislation. “To meet the challenges of the 21st century – from driving innovation in emerging technologies like quantum and AI to strengthening national security – our Labs need strong, reliable infrastructure.”
Los Alamos National Laboratory employed 16,547 workers in 2024 who earned $1.96 billion in salaries, according to the lab’s 2024 Economic Impact Report released in February. The facility spent $1.05 billion with New Mexico businesses and paid $138 million in gross receipts taxes to the state.
Sandia National Laboratories reached a record economic impact of nearly $4.8 billion in 2023, with 16,736 employees and $114 million paid in gross receipts taxes to New Mexico. Combined, the two facilities supported an estimated 21,000 jobs statewide as of 2022, according to University of New Mexico research.
The legislation targets what lawmakers describe as a severe maintenance backlog after decades of underfunding. The average age of DOE facilities is 37 years, with support systems including water, electrical and roads averaging 40 years old.
“The labs’ success depends on critical infrastructure that is often decades beyond its usefulness,” Luján said in the press release.
The bill specifically addresses repairs and updates to laboratory buildings, administrative facilities and critical infrastructure including roads and power plants. Beyond maintenance, the legislation aims to create construction jobs and support equipment suppliers in communities where the labs are located.
Sen. Dick Durbin of Illinois and Sen. Alex Padilla of California co-sponsor the Senate bill. In the House, Rep. Bill Foster of Illinois leads companion legislation.
“It’s critical that the U.S. maintains its position as a global leader in scientific discovery by properly investing in our labs and building critical infrastructure to meet the demands of the 21st century,” Durbin said in a press release from his office.
The legislation comes as the United States faces increasing competition in scientific research and technological development from countries like China. Supporters argue modernizing the National Labs is essential for maintaining America’s technological edge in areas including artificial intelligence, quantum computing and advanced manufacturing.
Luján, who co-chairs the Senate National Labs Caucus, previously secured inclusion of similar legislation in the House-passed Moving Forward Act during the 116th Congress. The current bill’s sponsors have not yet released details about total funding authorization or implementation timeline.
The legislation will need to navigate the appropriations process, where it could face scrutiny from budget-conscious lawmakers despite the historically bipartisan support for National Labs funding.
For New Mexico, the economic stakes are significant. Los Alamos contributed $3.8 billion to the state’s economy in fiscal year 2022, with lab employees and indirect workers paying $53.4 million in personal income taxes, according to 2024 analysis by University of New Mexico and New Mexico State University researchers.
Infrastructure improvements at the labs could particularly benefit northern New Mexico communities, where more than 65% of Los Alamos employees live outside Los Alamos County. The labs also support small business development through programs that created or retained 371 non-laboratory jobs with $4.8 million in salaries in fiscal year 2024.
The National Labs system employs nearly 80,000 people across 17 facilities nationwide, conducting research ranging from nuclear weapons maintenance to clean energy development and cutting-edge physics experiments.
