HB 322 creates two new transportation funds in New Mexico: the Transportation Trust Fund and the Transportation Program Fund. The Trust Fund receives annual distributions from electricity sales tax (starting at 1% and increasing to 2% over time) and adjusted motor vehicle tax revenues (shifting 30% to the Trust Fund after 2028). The Program Fund uses these funds to provide matching money for federal transportation infrastructure projects. Unspent capital project funds from the general budget also revert to the Trust Fund, ensuring ongoing revenue for transportation initiatives.
HB 289 clarifies how New Mexico allocates transportation funding to school districts and state-chartered charter schools, requiring that funds cover the full route cost - including miles traveled to pick up the first student and return the bus after dropping off the last student. It establishes a new calculation method using a base amount for all districts plus a variable amount based on historical transportation costs, site characteristics, and operational days. If a district’s allocation exceeds required transportation costs, 50% of the excess must go to a transportation emergency fund, and at least 25% must be used for transportation services (excluding salaries). The bill takes effect July 1, 2026.
SB 2 increases funding for New Mexico's highway projects by raising fees on vehicle registrations and commercial truck taxes. It raises weight-distance tax rates for commercial trucks (affecting freight companies), increases standard passenger vehicle registration fees, and adds new annual fees for electric vehicles ($70-$90) and plug-in hybrids ($35-$45) starting in 2027. All new revenue from these changes goes directly to the State Road Fund to support highway improvements. The bill specifically targets commercial truck operators, all vehicle owners, and electric vehicle owners, with fee amounts varying by vehicle type and registration year.
SB 185 increases New Mexico's gasoline tax from 17 cents to 20 cents per gallon, effective July 1, 2026. This change directly affects all drivers and businesses purchasing gasoline within the state, as the tax applies to every gallon received in New Mexico. The bill amends Section 7-13-3 of the state tax code to update the excise tax rate. The policy change is a straightforward rate adjustment with no additional provisions or exemptions described in the bill text.
HB 175 requires New Mexico school districts and state-chartered charter schools to report detailed transportation data, including the number of students transported (especially special education and charter school students), bus routes, miles traveled, and any expansion of services compared to the previous year. If a district or charter school reports expanded transportation services (such as new routes, increased miles, or more riders), it receives an immediate funding allocation for that expansion during the current school year. This allocation may be adjusted in the following year based on final data, as determined by the Public Education Department. The bill directly affects school districts and charter schools by linking their transportation funding to specific, reported service metrics.
This bill (HB 3) is a funding authorization for New Mexico's Department of Transportation (DOT) for fiscal year 2027. It allocates specific budget amounts for highway construction and maintenance ($556 million for design/construction, $321 million for operations), including funding for road projects, bridge inspections, and equipment. The bill includes performance targets, such as maintaining 95% of bridges in fair or better condition and completing 88% of projects on schedule. It directly affects DOT operations and state highway infrastructure management, with no new policy changes - only funding allocation.
