Corner to Corner
Diane Denish is a former lieutenant governor of New Mexico. She is a native of Hobbs and now lives in Albuquerque.
We are now two hundred days into the second Trump administration, and the early outlines of its policies are beginning to take shape in New Mexico. Cuts to the Forest Service. Small business loan programs frozen. Clean energy initiatives shut down. Medicaid and SNAP reductions poised to hit thousands. As the administration’s budget and trade policies take effect, the impacts on rural communities are becoming clear.
Medicaid Cuts
With 38.5% of New Mexicans on Medicaid, the projected loss of coverage for 88,000 residents starting in 2027 will hit rural areas hardest. Small-town hospitals and clinics—often the only local healthcare providers—will be strained, and tribal clinics will face longer waits and shortages. The administration has included a $150 million allocation for rural hospitals, but that won’t offset the damage in communities where even minor funding changes can mean closures. And new Medicaid work requirements will be nearly impossible to meet in places with few job opportunities.
SNAP Reductions
SNAP cuts will be devastating in rural New Mexico, where food costs are already higher and grocery options fewer. Of the state’s 451,000 recipients, at least 12% are seniors. Cuts to USDA reimbursements for school lunch programs will compound the hardship. Small farmers who supply local schools with fresh food—like Moriarty rancher Manny Encinias—will lose steady markets. The Food Depot in Santa Fe has announced it will end its Regional Farm to Food Bank program, reducing access to healthy food in Northern rural counties.
Small Business Setbacks
Cuts to small business loans and development programs threaten rural economies where entrepreneurship is often the only path to growth. WESST (Women’s Economic Self Sufficiency Team) has closed two offices and laid off eight staff members, while the Minority Business Development Agency has shut down entirely. The Small Business Administration is eliminating 43% of its workforce. In rural towns, fewer loans, less training, and sudden grant cancellations will choke off opportunities.
Loss of Public Media
Public radio and television cuts—at the President’s request—pose a unique threat to rural and Native communities. Without private donor networks, many stations rely almost entirely on federal funding. Beyond educational programs and cultural preservation, these outlets provide emergency weather alerts, wildfire updates, and remote learning resources. The loss of programs like Native America Calling will silence vital community voices.
Housing Challenges
HUD’s changes to housing programs will reduce starts, repairs, and upgrades—particularly in Native communities where housing needs are already acute. Housing voucher requirements are changing, and vouchers are being revoked.
Public Lands and Jobs
National Forest and Park Service cuts—25% reductions in staffing have already occurred for the Carson and Gila National Forests, Valles Caldera, and Carlsbad Caverns— and will ripple through rural economies. Many employees live in small towns near these lands, and visitor services are a significant source of seasonal jobs.
Tourism Decline
New tariffs and trade tensions are discouraging European and Canadian visitors, cutting into a key revenue stream for New Mexico and rural communities. While New Mexico’s landscapes and culture remain a draw, fewer tourists mean fewer stops for gas, meals, and local attractions in small towns.$70 billion will be lost nationally and losses will be felt on rural main streets.
The Road Ahead
It’s still early, but the pattern is unmistakable. From healthcare and nutrition to small business and tourism, rural New Mexico is bracing for a wave of challenges. These aren’t distant policy shifts, some are happening right now. And some, like Medicaid cuts and SNAP cuts are future looming threats to hospitals, farms, schools, and local economies.
The truth is simple: none of us are immune to these cuts. New Mexico is resilient but for rural communities already working with thin margins, the impacts will be deeper, harsher, and harder to reverse.
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