In an announcement on Friday, Ms Grisham said that from Monday 16 November, New Mexico residents will be instructed to “stay home except for only the most essential trips” and encouraged to avoid congregating in groups.
Essential businesses, including pharmacies, supermarkets and child care facilities will be allowed to remain open, but will be forced to “minimise operations and in-person staffing to the greatest extent possible”, according to The Hill.
Retail spaces deemed essential will not be allowed to exceed either more than 25 per cent of maximum occupancy or 75 people at one time, depending on the size of the location, and must be shut between 10pm and 4am.
Non-essential businesses will have to close alongside outdoor recreational activities from Monday.
Restaurants will be closed for in-person dining, but will still be permitted to offer delivery services and curbside pickup.
New Mexico residents will be limited to meeting in groups of no more than five people, but houses of worship will be allowed to hold religious services that do not exceed either 25 per cent capacity or 75 people at one time, depending on the size of the location.
The state’s restrictions are scheduled to run until at least 30 November.
In a tweet on Friday, Ms Grisham said: “New Mexico is at the breaking point. We face a life-or-death situation, & we must & will act to preserve the lives of New Mexicans.
“On Monday New Mexico will hit reset, re-enacting the most heightened level of statewide public health restrictions to slow the spread & save lives.”
In a separate press release, the governor said that the state needed to act quickly in order to stop the spread of the virus.
“The rate of spread and the emergency within our state hospitals are clear indicators that we cannot sustain the current situation without significant interventions to modify individual behavior,” Ms Grisham said.
The governor added: “We had hoped targeted crackdowns, limited hours of operation and amplified messaging and enforcement would make the difference and slow the spread and relieve our hospitals.
“The public health data make clear, however, that more aggressive restrictions are not only warranted but essential if we are to prevent mass casualties.”
New Mexico has seen a steady increase in daily Covid-19 cases over the last couple of months. On Thursday, the state reported 1,742 new cases and 18 fatalities.
The governor’s office also revealed on Friday that “the total Covid-19 hospitalizations in the state have risen at least 214 per cent over the most recent four weeks.”
Since the pandemic began, New Mexico has reported more than 60,000 coronavirus cases and at least 1,176 deaths.
According to a tracking project hosted by Johns Hopkins University, there are now more than 10.6 million people who have tested positive for coronavirus in the US. The death toll has reached at least 243,387.