SANTA FE, N.M. (AP) — A New Mexico state agency overseeing services for the elderly is defending its decision to end its contract with a major coordinator of services such as home-delivered meals and adult daycare.

In a statement Tuesday, the Department of Aging and Long-Term Services said it terminated its contract with the Non-Metro Area Agency on Aging because of concerns about the group's handling of state and federal funds.

U.S. Rep. Michelle Lujan Grisham has criticized the cancellation of the contract as a reckless move that disrupted elderly services to thousands of New Mexico resident...