HB 247 New Mexico House · 2026 Regular Session

CAPITAL OUTLAY CHANGES

HB 247 limits how New Mexico state agencies can manage capital projects (like construction or equipment purchases) by requiring unspent funds to revert to specific state funds. It prohibits reauthorizing projects more than once or for over two years unless 10% of the initial funds are already committed, and mandates that projects over $100,000 must align with an approved infrastructure plan. Unspent general fund capital appropriations must revert to the Capital Development and Reserve Fund (or Tribal Infrastructure Fund for tribal projects) by specific deadlines, with water projects now requiring state agency grant programs instead of direct legislative funding. The bill updates prior laws (2022-2025) to enforce these reversion timelines and spending rules.

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

House Passage

Feb 2026

Senate Passage

Feb 2026

Signed into Law

Mar 2026

Introduced Jan 30, 2026 Signed Mar 10, 2026

Maddy AI version diff · 1 comparison

What changed between versions

introduced version → Final Version · 6 edits

MODERATE

This bill updates capital expenditure rules for New Mexico state government, adding stricter limits on how often projects can be reauthorized, requiring certain projects to be included in infrastructure plans, and changing when unspent funds must return to the general fund. The changes aim to improve fiscal accountability and ensure capital projects are properly planned and executed.

Scope change

The bill now applies to all capital outlay projects from the general fund and other state funds, with specific provisions for tribal infrastructure projects and projects funded with tax-exempt bonds.

REQUIREMENT

Capital outlay projects can no longer be reauthorized more than once or for more than two years, and at least 10% of initial appropriations must be encumbered by January 1 of the fiscal year.

Capital outlay appropriations of $100,000 or more must now be included on an infrastructure capital improvement plan before funding can be made.

FISCAL

Unexpended balances from general fund appropriations must revert to the capital development and reserve fund or tribal infrastructure project fund, with tribal projects having separate treatment.

TIMELINE

New deadlines for fund reversion based on project type: projects with less than 5% of total appropriation must revert by September 30, 2023 or 2024 depending on third-party agreements, while inclusive construction/renovation projects revert by September 30, 2026.

ENFORCEMENT

The department of finance and administration must freeze accounts where unexpended balances will revert, and any encumbrances made after the freeze date are considered invalid.

DEFINITION

Added definitions for 'encumbrance,' 'purpose,' and 'technical change' to clarify what constitutes valid project modifications versus substantive changes.

Floor votes · Senate Feb 18, 2026 · House Feb 9, 2026

How they voted

36–0

Passed · 2 other

Total votes 38

Feb 18, 2026

D Democratic22

21 Yea 1

95% Yea

R Republican16

15 Yea 1

93% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 10, 2026

Signed into law

Signed

executive

Feb 19, 2026

Executive · Passed

House concurred in Senate amendments

executive

Feb 18, 2026

Upper · Passed

passed Senate

upper

Feb 12, 2026

Upper · Passed

DO PASS, as amended, committee report adopted

upper

Feb 10, 2026

Introduced

Sent to Senate Finance Committee

upper

Feb 9, 2026

Lower · Passed

passed House

lower

Feb 6, 2026

Lower · Passed

DO PASS, as amended, committee report adopted

lower

Jan 30, 2026

Introduced

Sent to House Taxation & Revenue Committee

lower

1 primary · 0 co-sponsors