HB 177/a NM MATCH FUND

Rep Meredith Dixon

Actions: [2] HRDLC/HAFC-HRDLC [3] DP-HAFC [7] DP/a [9] PASSED/H (65-0) [6] SFC-SFC [8] DP [9] PASSED/S (37-0) SGND BY GOV (Feb. 28) Ch. 7.

Scheduled: Not Scheduled

  House Bill 177 (HB 177) creates the New Mexico Match Fund and appropriates one hundred million dollars ($100,000,000) to the NM Match Fund. It declares an emergency.  

 House Bill 177 (HB 177) creates the non-reverting New Mexico Match Fund in a new section of the Department of Finance and Administration Act (DFA Act)(Section 9-6-1 et seq NMSA 1978). Subject to departmental review and approval, the fund will provide grants to eligible entities for state matching funds for federal grants and to offset higher project costs incurred to comply with federal requirements. It provides for grants of a limited amount for an eligible entity’s administrative costs (not more than five percent of the combined total amount of the federal grant and state matching funds awarded) and for the DFA’s administrative costs (limited to three percent of the appropriation amounts received in the fund). HB 177 establishes a few minimal conditions for these grants including a state matching fund grant being contingent on the award of the federal grant.  
HB 177 requires an annual report on the grants to the Legislative Finance Committee (LFC) and any other appropriate interim committee no later than 1 October of each year. It defines department and eligible entity. 

HB 177 appropriates ($100,000,000) from the General Fund (GF) to the NM Match Fund for expenditure for Fiscal Years (FY) 2025 and subsequent FYs to provide grants from this fund.

Any unexpended or unencumbered balance remaining at the end of a FY will not revert to the GF.

HB 177 declares an emergency.
 

 Currently the state has no one source for matching funds or project overruns for federal grants. Having a source of matching funds and funds for administrative use for the grant will make it easier, especially for smaller qualified entities, to obtain and keep federal grant awards. 

 2/2/2024
The House Appropriations and Finance Committee amended HB 177 (HAFC HB 177A) by removing the appropriation from the title and content of the bill creating the NM Match Fund.