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By Scott Weiland, Santa Fe New Mexican Several bills have proven highly controversial this Congress, but one passed with overwhelming bipartisan support. It’s coming. A bill that would establish a $50 million state fund to help draw down federal funds for infrastructure, water and clean energy projects received unanimous yes votes in two committees. […]
“Santa Fe New Mexican” by Scott Weiland
While several bills have proven highly controversial this Congress, one passed with overwhelming bipartisan support.
A bill that would establish a $50 million state fund to help raise federal funds for infrastructure, water and clean energy projects received unanimous votes in two committees and on the House floor.
House Bill 177 is now in the Senate, where proponents hope to restore the original $100 million bill before it crosses the finish line.
The fund helps states leverage federal funding through anti-inflation laws, infrastructure legislation, and other programs, making funding more available to disadvantaged communities that otherwise wouldn’t have access to it. , bill supporters said.
Estimates vary on how big of a magnet state matching funds will be. Some say every $1 of state contributions could attract up to $8 in federal funds.
“New Mexico’s communities have many great opportunities to acquire new resources for economic development, infrastructure, and more,” said Michael Leon Guerrero, economic sustainability advisor at the Civic Policy Center. Ta. “The problem is there are many barriers to accessing that funding…especially in rural and tribal communities.”
Leon Guerrero said these smaller communities typically lack the funds to match federal funds. And when federal funding is secured, the cost of the project often increases significantly before the money arrives, he said.
Another hurdle is that communities don’t have the means to apply for federal grants and hire people to follow through with the process, Leon Guerrero said.
“HB 177 addresses all three of these issues,” he said.
Money from the two federal funding streams could be used for clean energy, roads, bridges, water systems, broadband and other improvements. Liliana Castillo, a spokeswoman for the consortium of nonprofit organizations supporting the bill, said the wide range of possibilities for infrastructure upgrades gives the proposed fund bipartisan appeal.
Three Democrats and two Republicans supported the bill.
Last year, lawmakers approved $10 million in matching funds, of which $7.5 million generated $80 million in federal funding, Leon Guerrero said.
He said there is a growing need to upgrade water and wastewater systems. He said the community has also expressed interest in electric vehicle charging stations, electric school buses and energy efficiency projects, all of which would be eligible for federal funding.
Leon Guerrero said a key change to the fund being proposed this year is eliminating the expiration date after receiving the funds. This is different from last year’s program, which required projects to start by a certain time or lose funding, he said.
Rebecca Luce, the state’s senior infrastructure adviser, said matching funds like this are essential for the state to win competitive federal grants.
Restoring the fund to $100 million will be important to cover many infrastructure needs, she said.
“We know the demand for these match dollars is going to be very high,” Roos said. “We want to continue to reinforce our message to Congress that $50 million is not enough.”
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