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New Mexico Match Fund overcomes final legislative hurdle 

Feb 13, 2024 | Press Releases

SANTA FE – Legislation to secure additional federal funding for infrastructure, research, and economic development is now headed to Gov. Michelle Lujan Grisham’s desk. The governor-backed bill received unanimous support in the Senate on Tuesday, maintaining unanimous approval throughout the session.

“Many federal programs require communities to provide matching funds to the tune of millions of dollars before a grant is awarded, often leaving revenue-strapped, rural communities out in the cold,” said Gov. Lujan Grisham. “The New Mexico Match Fund will level the playing field for all New Mexico communities to leverage vital federal funds for local projects.”

The New Mexico Match Fund, HB 177, will leverage billions of federal dollars in coming years. The timing couldn’t be better, as New Mexico communities are poised to take advantage of unprecedented levels of federal funding for infrastructure and economic development through Bipartisan Infrastructure Law (BIL) and Inflation Reduction Act (IRA) programs including:

  •  Regionally significant road, rail, and transit projects
  • Neighborhood access and equity transportation Watershed protection and restoration
  • Water conservation, treatment, and supply
  • Clean power generation and storage

With an initial cash infusion of $75 million, HB 177 creates a reliable and nimble source of funding for state, tribal, and local entities that require matching funds to be eligible for a federal grant. The Match Fund also provides opportunities for match grant recipients to receive an additional grant award to cover the costs of administering their project, thereby addressing a lack of capacity that too often holds our communities back from making much-needed investments in crucial areas such as infrastructure.

The Department of Finance and Administration (DFA) will administer the Match Fund on a rolling basis, allowing entities to seek the match grant when they need it to meet federal application deadlines.

The idea behind the match fund has already proven successful on a smaller scale. During Fiscal Year 2024, a total of 41 projects received smaller DFA matching grant funds totaling over $10 million. Those 41 projects were able to leverage federal match grants for a total of $86 million.

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The Office of Governor Michelle Lujan Grisham is located on the fourth floor of the New Mexico State Capitol in Room 400.

490 Old Santa Fe Trail Room 400
Santa Fe, NM 87501

Phone: (505) 476-2200
Toll free: (833) 520-0020

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