From The President's Desk—February 2025

House Bill 11:
​Unintended Consequences for New Mexico

The Santa Fe Chamber of Commerce is committed to policies that strengthen our economy and support workers. However, House Bill 11, the proposed Paid Family & Medical Leave (PFML) initiative, presents serious financial risks for businesses and employees alike.
 
This bill introduces a $450 million tax on working New Mexicans, projected to rise to $545 million by 2031. For many small and medium-sized businesses operating on tight margins, this additional cost could mean cutting jobs, reducing wages, or shutting down. These businesses drive job creation and innovation—policies that weaken them ultimately harm the very workers they aim to help.
 
Consumers will also feel the impact. Higher costs for businesses often translate into price increases, worsening inflation and reducing household purchasing power. At a time when many families are already struggling with rising living expenses, adding another financial burden is counterproductive.
 
House Bill 11 also imposes a one-size-fits-all mandate, ignoring the diverse needs of businesses and workers. A locally owned shop does not have the same resources as a large corporation, yet both would face the same obligations. This lack of flexibility creates unintended consequences, disproportionately hurting smaller employers.
 
Providing paid family and medical leave is a valuable goal, but there are better ways to achieve it. Encouraging voluntary participation, offering tax incentives for businesses that provide leave benefits, and leveraging public-private partnerships could support workers without disrupting economic stability.
 
Moreover, the bill’s reliance on increased taxation raises concerns about its long-term sustainability. With pressing economic challenges like infrastructure improvements and workforce development, our state must be strategic about funding priorities. Burdening businesses with additional taxes will only stifle growth and discourage new investments.
 
New Mexico should pursue policies that uplift both businesses and employees. By exploring alternative solutions, we can ensure workers receive necessary support without undermining the foundations of our economy. I urge policymakers to seek balanced, sustainable approaches that foster prosperity for all.
 
For more information visit: www.workingfamiliesnm.com

Bridget Dixson, IOM
President and CEO
Santa Fe Chamber of Commerce