Gov. Susana Martinez says she has reached an agreement with House and Senate leaders and will call a special session in the coming days.
The governor's office says the agreement includes a $295 million public works project that will increase funding for senior centers and higher education institutions around the state.
The deal also calls for highway projects to be paid for through a combination of state general funds and severance tax bonds.
Lawmakers also agreed to tax incentives supported by the governor, including a measure to restore a medical expense tax deduction claimed by hundreds of thousands of New Mexicans each year.
Business groups and mayors from around New Mexico have been pushing Martinez to call a special session since lawmakers in March failed to reach agreement on the public works bill.
The session will likely begin Monday.
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