Sandia National Laboratories reported a record $5.2 billion in economic impact for 2025, according to its annual economic impact report released this week. This marks the 17th consecutive year that Sandia has set a new high in its economic contributions. The figure is $40.5 million higher than the previous year and more than double the amount from 12 years ago.
The laboratories, which employ about 16,000 people, spent nearly $2.95 billion on labor costs in 2025, an increase of $46 million over 2024. The average salary at Sandia is $145,000, with jobs focused on national security missions.
“Sandia has been a strong part of New Mexico’s economy for more than 75 years,” said Labs Director Laura McGill. “We are extremely proud of our contributions, which extend beyond the economy and include giving back to our community through financial donations and volunteer time. We are neighbors that are invested in making this an even greater place to live.”
McGill also highlighted how employees’ involvement goes beyond their work: “Our employees live here. They raise their families here. They volunteer in our schools, support local organizations and spend their paychecks at local businesses,” she said. “When we talk about economic impact, that’s what we’re really talking about.”
In addition to workforce investment, Sandia spent $1.7 billion on subcontract-related payments with businesses nationwide in 2025; more than half went to small businesses—a key focus area for the labs’ procurement strategy.
“Sandia National Laboratories has a rich tradition of collaborating with a wide range of skilled small business suppliers who play a vital role in supporting our national security initiatives,” said Krista Smith, Sandia’s supply chain director.
Of the total spent with small businesses—$1.03 billion—the labs directed $463 million to companies based in New Mexico and worked with 335 new small businesses during the year.
“I want to highlight the importance of working with new small businesses,” said Zach Mikelson, Sandia’s small business program manager. “They bring fresh, innovative ideas to the table, which can help develop better solutions for the nation, all while contributing to the local economy by creating jobs and supporting economic growth.”
Sandia increased spending with veteran-owned firms as well as those located in HUBZones—areas identified as historically underutilized business zones.
Tax contributions also grew: Sandia paid approximately $144 million in gross receipts taxes to New Mexico (up by $11.3 million from last year) and overall corporate tax payments reached $148 million (an increase of $12.3 million).
Education remained a significant area of focus for Sandia’s community outreach efforts; STEM programs reached 14,000 students (an increase of about 4,000 compared to last year), while engagement with teachers and community members nearly doubled compared to 2024 figures.
The laboratories partnered with Albuquerque Public Schools and the National Museum of Nuclear Science on Mission Fission—a program introducing nuclear science concepts to eighth graders—which aims to reach thousands annually.
“These are students who may one day become engineers, scientists, technicians or small business owners in New Mexico,” McGill said. “Behind every statistic is a student discovering a love for science.”
Community giving included donations totaling $1.6 million from National Technology and Engineering Solutions of Sandia LLC toward education and other initiatives; employees contributed over $4 million through United Way campaigns and supported additional charitable drives throughout the year.
“As the nation’s premier engineering laboratory, Sandia’s mission is to address complex national security challenges,” McGill said. “But we don’t do that in isolation. We pull from our community — one that includes local businesses, schools, nonprofits and tens of thousands of families across New Mexico and beyond.”
