Once again the debate over whether undocumented immigrants should have access to a driver’s license is dominating the legislative session in New Mexico. In the following analysis we find that repealing access to driver’s licenses for unauthorized immigrants will cost the New Mexico economy $38.5 million annually due to decreased labor force productivity among those impacted by the policy change. The economic impacts of this policy, which are not well-represented in the current debate, will accrue to all New Mexico residents, not just the immigrant families for whom the impact will be most immediate and acute. Given the difficulties facing the state’s economy, the economic consequences of this potential policy shift should be considered.