2024 – HB 177 NM Match Fund
HB 177 creates a New Mexico Match Fund of $100 million. Managed by the state treasury, the funds will be annual and non-reverting, and used to support grantmaking efforts. A host of state and local entities can apply for these grants. For a complete list of eligible entities, click here.
There is an enormous, once-in-a-lifetime amount of federal funding currently available. It comes from several sources, including the Inflation Reduction Act (IRA). States, local governments and other public entities can apply for this funding. The funding is for infrastructure build-out, clean energy development, workforce training, pollution cleanup, and other essential functions.
Over the past year, New Mexico has had difficulty accessing this funding. This is because there is a requisite “local match” or “state match” that many of these federal funding opportunities require. NM Match Fund seeks to change this requirement by creating a “state match” fund. Without this fund, New Mexico risks leaving billions of dollars on the table. With these funds, we can ensure rural communities are not left behind in our transition away from fossil fuels. HB 177 passed the House 65-0, and passed the Senate 37-0. It now awaits the Governor’s signature. The NM Match Fund received a $75 million appropriation in House Bill 2.
2024 – SB 9 Conservation Legacy Fund
Consistency is one of the key outcomes of SB 9 Conservation Legacy Fund. For years, New Mexico has lacked consistent funding for our state conservation agencies. SB 9 changes this by appropriating $300 million from the general fund to the Conservation Legacy Permanent Fund.
The importance of this fund is in the math. When the Land of Enchantment Legacy Fund was passed last year, it was created as two separate funds: the Land of Enchantment Legacy Fund (LELF) and the Conservation Legacy Permanent Fund (CLPF). Each fund received an initial investment of $50 million. The LELF is to start funding state agencies and conservation projects by 2025. It would do so by paying out 25% percent of its budget to the following entities:
- 22.5% to the Energy, Minerals and Natural Resources Department
- 50% allocated to the forestry division
- 50% allocated for the Natural Heritage Conservation Act
- 22.5% to the New Mexico State University Department of Agriculture
- 10% to the Department of Environment
- 15% to the Economic Development Department
- 25% allocated for the Outdoor Equity Grant Program
- 75% allocated to the Outdoor Recreation Division
- 8% to the Cultural Affairs Department
- 22% to the Department of Game and Fish
The CLPF, on the other hand, was placed under the management of the State Investment Council, and its funds were invested to begin accruing interest to eventually be paid out into the LELF.
Unfortunately, as it stood, the CLPF would not have been able to replenish the LELF until 2040. This is because the CLPF can only distribute investment income to the LELF if its balance remains above $150 million. SB 9 Conservation Legacy Fund eliminates this roadblock by growing the CLPF overnight. With a CLPF at $350 million, it is estimated that the fund could start making distributions to the LELF by 2026.
This advance in timeline translates to consistency for not only our agencies and programs but for all New Mexicans. It means predictable funding for expanding conservation, building climate resilience, and supporting healthy communities for generations to come. While technically not passed, SB 9 lived on in HB 2, the state budget bill, which successfully appropriated the same $300 million from the general fund to the Conservation Legacy Permanent Fund. SB 9 died in the Senate Finance Committee.
