EARLY CHILDHOOD ED & CARE FUND TRANSFERS
HB 71 increases the annual mandatory transfer from New Mexico's Early Childhood Education and Care Fund to the Early Childhood Education and Care Program Fund from $250 million to $500 million, effective July 1, 2025. This change directly affects early childhood education and care programs serving young children and families across the state by providing a significant, guaranteed funding boost. The bill mandates that on July 1 each year, the state must transfer the greater of 5% of the fund’s average three-year market value or $500 million to the program fund. The legislation ensures stable, predictable funding for childcare and early learning services without altering other fund management rules or reporting requirements.
Bill status
signed
all 5 stages cleared
Introduction
Jan 2025
Committee Review
Mar 2025
House Passage
Mar 2025
Senate Passage
Mar 2025
Signed into Law
Apr 2025
Introduced Jan 13, 2025
Signed Apr 8, 2025
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What changed between versions
introduced version
→
Final Version
·
5 edits
MODERATE
This bill fundamentally restructures how excess oil and gas tax revenues are distributed in New Mexico. It creates a new 'excess extraction taxes suspense fund' and changes the allocation rules, directing 50% of excess funds to the Early Childhood Education and Care Fund and 50% to the Behavioral Health Trust Fund for fiscal years 2026-2028, with 100% going to Early Childhood Education in 2029 and beyond. The bill also increases the mandatory annual transfer from the Early Childhood Education and Care Fund to the Early Childhood Education and Care Program Fund from 5% of average market values or $250 million to a guaranteed $500 million minimum.
Scope change
The bill expands the scope of fund management by introducing a new suspense fund for excess extraction taxes and modifies which funds receive priority allocations from excess revenues.
FISCAL
Created a new 'excess extraction taxes suspense fund' to temporarily hold excess oil and gas tax revenues before distribution.
Changed the distribution of excess extraction tax revenues to split 50/50 between Early Childhood Education and Care Fund and Behavioral Health Trust Fund for 2026-2028, with 100% going to Early Childhood in 2029 and beyond.
Increased the minimum annual transfer from Early Childhood Education and Care Fund to the Program Fund from $250 million to $500 million.
TIMELINE
Established specific fiscal year allocation rules (2026-2028 split, 2029+ full allocation) rather than previous flexible percentages.
DEFINITION
Added new definitions for 'annual average amount' and 'state reserves' to clarify calculation methods for fund distributions.
Floor votes · Senate Mar 20, 2025 · House Mar 12, 2025
How they voted
34–0
Passed · 6 other
Total votes 40
Mar 20, 2025
D
Democratic24
79% Yea
R
Republican16
93% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
11
Key actions
8
Committee
3
Apr 8, 2025
Signed into law
Signed
executive
Mar 22, 2025
Executive · Passed
House concurred in Senate amendments
executive
Mar 20, 2025
Upper · Passed
passed Senate
upper
Mar 18, 2025
Upper · Passed
DO PASS, as amended, committee report adopted
upper
Mar 12, 2025
Introduced
Sent to Senate Finance Committee
upper
Mar 12, 2025
Lower · Passed
passed House
lower
Mar 12, 2025
Lower · Passed
floor substitute adopted (1 amendment)
lower
Feb 21, 2025
Lower · Passed
DO PASS committee report adopted
lower
Feb 14, 2025
Lower · Passed
DO PASS committee report adopted
lower
Jan 23, 2025
Introduced
Sent to House Education Committee & House Appropriations & Finance Committee
lower
Jan 13, 2025
Introduced
Sent to House Pre-file
lower
2 primary · 0 co-sponsors
Sponsors
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