American Rescue Plan Act Appropriations Pass House with Bipartisan Support

Bill appropriates funds for broadband, transportation, housing, conservation, tourism, outdoor recreation, higher education & more. 

Santa Fe, N.M. – House Bill 2, appropriating a portion of federal American Rescue Plan Act (ARPA) funds, passed the House of Representatives today with a nearly unanimous 65-1 vote. 

Sponsored by Reps. Patty Lundstrom(D-Gallup), Nathan Small (D-Las Cruces), Candie Sweetser (D-Deming), Harry Garcia (D-Grants) and Dayan Hochman-Vigil (D-Albuquerque), the bill appropriates a total of $504 million in ARPA state relief funds and capital projects funds, and transfers the remainder of the $1.069 billion in ARPA funds to the appropriation contingency fund (ACF). Under the bill, these critical federal stimulus dollars will begin working for the people of New Mexico. 

“The appropriations in House Bill 2 will start getting these federal dollars working for New Mexicans right away on one-time projects - addressing everything from infrastructure to conservation to education - to aid a strong pandemic recovery,” said House Appropriations & Finance Chair Rep. Lundstrom. “In the coming weeks, we’ll be carefully evaluating how the remaining funds can be best leveraged to the benefit of all New Mexicans and developing effective legislation to do so in the 30-day session.” 

“One key area of need highlighted by the pandemic, especially in rural areas, is for high-speed broadband statewide, that will increase access to everything from education to work to telemedicine,” said Rep. Sweetser. “House Bill 2 effectively utilizes these use-it-or-lose-it federal funds to set the groundwork for delivering this utility, essential to life today, to households across New Mexico.”  

Rep. Small added: “New Mexico is the Land of Enchantment. That’s why House Bill 2 dedicates $40 million in unprecedented natural resources and rural jobs investments. These investments will safeguard our rivers, support our outdoor recreation in communities across New Mexico, and cap abandoned oil and gas wells while supporting our energy industry.” 

HB2 appropriates and transfers roughly $370 million of ARPA state relief funds to various agencies and funds for expenditure starting in the current fiscal year through the end of FY25. 

These include:

$172.5 million to the Dept. of Transportation for major statewide road projects, clean up New Mexico roadway beautification program, planning and upgrades to airports statewide, and electric vehicle charging stations statewide

$75.9 million to the Dept. of Finance & Admin to construct and equip an acute care hospital in a county with less than 100,000 residents, to provide housing assistance for homeless persons and affordable housing contingent on 100 percent local match, for energy-efficient affordable housing through the housing trust fund, for temporary assistance to local governments in advancing capital outlay and projects funded through ARPA, and for grants administration.

$26 million to the Dept. of Information Technology for broadband infrastructure statewide

$23.5 million to the Dept. of Energy, Minerals, and Natural Resources for upgrades at state parks statewide and orphan well planning and implementation

$17 million to the Higher Education Dept. for higher education program development enhancement fund to expand nursing programs and to the Teacher Preparation Affordability Scholarship Fund in response to the teacher shortage

$15 million to the General Services Dept. for COVID-related costs for the group health benefits program

$15 million to the Tourism Dept. for tourism marketing advertising

$10 million to the Economic Development Dept. for the outdoor equity grant program fund and for outdoor recreation grants

$10 million to the Environment Dept. for surface water quality and river habitats statewide

$5 million to the Human Services Dept. for assistance for food banks

$1 million to Legislative Council Services for a legislative processing system

$500,000 to the Admin Office of the Courts for pretrial services monitoring

HB2 also appropriates over $133 million of federal ARPA capital projects funds for statewide broadband infrastructure and broadband alternatives, including satellite, as well as building and upgrading tribal libraries to increase access to these services. These federal funds, separate from the ARPA state relief funds, are provided for critical capital projects that directly enable work, education, and health monitoring, including remote options.

House Bill 2 will now move to the Senate. The legislature will also look to put forward effective legislation in the upcoming 30-day session that invests the remaining funds in a variety of ways to best benefit New Mexicans. 

The Roundhouse is open to the public for this special session, and proof of full COVID-19 vaccination will be required to enter the building. Virtual public participation will also be available. Members of the public can view floor sessions and committee meetings on the New Mexico legislature’s Webcasts tab, and provide comment via phone or Zoom as directed on the daily schedule.

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