Mexico’s 2026 Health Budget Rises but Funding Gaps Persist

Mexico’s 2026 health budget will increase to MXN$965 billion (US$53.3 billion), primarily benefiting IMSS and IMSS-Bienestar, while other agencies face cuts. Despite the rise, public health investment remains below WHO recommendations, and high out-of-pocket spending continues to challenge Mexican households.

Mexico’s federal government has approved a 5.9% nominal increase in the health sector budget for 2026. This spending represents 2.5% of the country’s gross domestic product (GDP), well below the 6% recommended by the WHO.

The 2026 economic package includes specific adjustments across health institutions. IMSS will see an 11.7% rise in its budget, while IMSS-Bienestar will receive a 0.8% increase. Conversely, other subsystems face reductions: ISSSTE is slated for a 3.6% cut, PEMEX health services a 3.4% reduction, and the Ministry of National Defense (SEDENA) a 5.2% decrease. The Ministry of Health itself will see its budget fall by 3.2%. 

“There have been claims on social media that the budget is decreasing, which is false; it is increasing. Where does it increase the most? In IMSS-Bienestar. If we add together all health-related spending, the Ministry of Health, IMSS-Bienestar, IMSS, and ISSSTE, the overall budget rises,” claims President Claudia Sheinbaum.

Alongside the budget changes, the government plans a restructuring of health programs. The Ministry of Health will reduce its programs from 27 to 16, ISSSTE from 29 to 17, and IMSS from 20 to 16. 

Despite the overall increase in aggregated health spending across the Ministry of Health, IMSS, IMSS-Bienestar, and ISSSTE, underinvestment remains a challenge. Compared with other Latin American countries and OECD members, Mexico’s public health funding is low, and high out-of-pocket spending continues to burden families, reports FUNSALUD. 

“We are among the countries that invest the least in healthcare, and our life expectancy is not good. While Japan and Spain continue to advance, Mexico faces a much greater challenge,” says Héctor Valle, Executive President, FunSalud. “Next year’s health budget appears likely to remain very challenging,” Valle adds. 

Additionally, the government has proposed an increase in “health taxes,” which involve higher Special Taxes on Production and Services (IEPS) applied to sugary drinks and cigarettes. However, other political parties, such as the PAN, are calling for greater transparency in the management of these taxes. 

“In 2025, MX$81 billion are expected to be collected from tobacco and sugary drink taxes, yet none of these funds are allocated to health. This budget package does not include any initiative to modify the fiscal coordination model. That is why PAN is proposing a measure to ensure that the National Health Fund for Well-Being is managed collectively for all Mexicans, regardless of their social security status,” said Éctor Jaime, Deputy, PAN.