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Pensions, scholarships & projects win big in Mexico’s 2026 Budget, as security loses out

Mexico’s proposed 2026 federal budget, submitted to Congress on September 8 by Finance Minister Édgar Amador Zamora, channels more resources toward social welfare programs, scholarships and infrastructure projects, but leaves significant gaps in security, health and education, some critics say.

Zamora defended the package, saying it “expands social rights with macroeconomic responsibility.”

Security and justice cuts

While total military spending remains constant at around US$17 billion, funding for the National Guard police force would fall nearly 34 percent to about US$1.3 billion, almost US$600 million less than in 2025, and the Secretariat of Security and Citizen Protection faces a 23 percent reduction.

While the Defense Ministry continues to see some growth—mainly for infrastructure rather than security— the Armed Forces will be subject to cutbacks. The revamped judiciary system is also expected to lose roughly US$820 million.

Analysts warn the security spending formula, which calculates funding based on reported rates of serious crimes such as homicide, extortion and violent robbery, fails to account for widespread crimes like disappearances, leaving public safety underfunded.

Health and education

Health spending will rise modestly by 5.9 percent to about US$54.4 billion, yet remains just 2.6 percent of GDP—well below the 6 percent recommended by the World Health Organization. The Mexican Social Security Institute (IMSS) sees a sharp increase, while ISSSTE, the Health Ministry and other agencies face cuts. New programs such as IMSS-Bienestar and the House-to-House health program receive additional funding.

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