Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Dow/Armstrong/Terrazas/Mejia/Jones
LAST UPDATED
ORIGINAL DATE 2/26/2025
SHORT TITLE Parental Leave and Fund
BILL
NUMBER House Bill 446
ANALYST Faubion/Garcia
APPROPRIATION*
(dollars in thousands)
FY25 FY26
Recurring or
Nonrecurring
Fund
Affected
See Fiscal Implications See Fiscal Implications Recurring ECECF
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
REVENUE*
(dollars in thousands)
Type FY25 FY26 FY27 FY28 FY29
Recurring or
Nonrecurring
Fund
Affected
Contributions - - $2,15 6.9 $4,441.6 $4,665.4 Recurring SPPL Fund
Benefits Paid - - -
($6,649.8) to
($26,599.2)
($13,604.9) to
($54,419.7)
Recurring SPPL Fund
Lost Interest - - - Up to ($7,496.0) Up to ($8,215.0) Recurring ECECF
Parentheses ( ) indicate revenue decreases.
*Amounts reflect most recent analysis of this legislation.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
WSD Startup
Costs
- $13,750.0 - - - $13,750.0
WSD Ongoing
Operating Costs
- - $14,556.9 $14,545.6 $14,545.6 $43,648.1
Total - $13,750.0 $14,556.9 $14,545.6 $14,545.6 $57,398.1
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Conflicts with House Bill 11
Sources of Information
LFC Files
Various state paid family and medical leave annual and legislative reports
Agency Analysis Received From
Early Childhood Care and Education Department (ECECD)
Workforce Solutions Department (WSD)
State Investment Council (SIC) House Bill 446 – Page 2
Agency Analysis was Solicited but Not Received From
Economic Development Department (EDD) NM Attorney General’s Office (NMAG)
SUMMARY
Synopsis of House Bill 446
House Bill 446 (HB446) establishes a state-run Paid Parental Leave (PPL) program in New
Mexico, providing six weeks of paid parental leave for nearly all workers in the state. This leave
is funded by the early childhood education and care fund, which is amended in this bill to allow
appropriations for parental leave compensation. Additionally, an optional supplemental paid
parental leave program allows employees to receive three extra weeks of paid leave if they
contribute to the newly created supplemental paid parental leave fund. The bill sets up
administrative procedures to manage the program, including overseeing contributions,
processing claims, and ensuring fund solvency.
The six-week paid parental leave is available to all eligible employees in New Mexico, including
self-employed individuals who opt in but excepting federal employees. To receive the benefit,
employees must apply through the Workforce Solutions Department (WSD) and meet eligibility
requirements, such as having worked for at least six months in the prior year. Leave must be
taken within 12 months of the birth, adoption, or first-time foster placement of a child.
Compensation is calculated based on 100 percent of the state minimum wage plus 67 percent of
wages above the minimum wage, up to the state’s annual mean wage.
Funding for the six-week paid parental leave program comes from the early childhood education
and care fund, while the three additional weeks of supplemental paid parental leave are financed
by a 0.5 percent wage contribution from employees and self-employed individuals who opt into
the program. Contributions for the supplemental leave fund begin on January 1, 2027, and end on
January 1, 2030.
Employers are required to reinstate employees after their leave and maintain their health
insurance benefits during the leave period. They cannot reduce other leave benefits or retaliate
against employees for taking leave. The Workforce Solutions Department (WSD) would
administer the program, ensure compliance, and handle appeals related to benefit claims. A
temporary advisory committee, consisting of employer and employee representatives, would
provide guidance on implementation until January 1, 2027.
The bill follows a structured implementation timeline. The advisory committee would be
appointed by October 1, 2025, and the Workforce Solutions Department must finalize program
rules by July 1, 2026. Employee contributions to the supplemental paid parental leave fund begin
January 1, 2027, and paid parental leave benefits start on January 1, 2028. Contribution
collection for the supplemental program would end January 1, 2030.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns.
House Bill 446 – Page 3
FISCAL IMPLICATIONS
Paid Parental Leave
HB446 funds six weeks of paid parental leave through the early childhood education and care
fund (ECECF). This is accomplished by amending the fund's allowed expenditures to include
paid parental leave compensation. Specifically, Section 1 of the bill modifies the existing statute
governing the ECECF to allow WSD to use money from the fund to pay for leave compensation
for eligible employees and self-employed individuals.
Approximately 21.5 thousand babies are born in New Mexico each year. The paid parental
analysis uses three scenarios to provide a range of potential benefit costs depending on the
assumed uptake rate and reimbursement amount. LFC estimates this benefit between $100
million to $150 million in low and high uptake scenarios in the first year. These estimates grow
to $115 million to $171 million by 2031 as incomes rise. For reference, if every child born in the
state leads to two claims at the highest reimbursement (mean wage), it would cost nearly $300
million. This appropriation would be from the ECECF.
Given the estimates for the distribution amount, the investment revenue loss to the ECECF is
about $7.5 million in 2028 and grows to $9 million by 2031. This lost revenue reduces the fund
balance and would begin to reduce the distribution to the early childhood program fund in FY30.
Using money from the corpus of the ECECF would lead to a loss of investment revenue and
reduced distributions to the early childhood program fund (ECPF). Because the ECECF operates
as an endowment, its investment income supports essential early childhood programs, such as
prekindergarten, childcare assistance, and home visiting services. Withdrawing from the corpus
reduces the principal available for investment, leading to lower returns and diminished
compound growth. This would directly decrease annual distributions to the ECPF, forcing
difficult trade-offs between funding paid parental leave and maintaining existing early childhood
programs. Without a funding cap or solvency trigger, the ECECF could face long-term
sustainability risks, compromising its primary mission to support early childhood education and
care in New Mexico.
The State Investment Council (SIC) indicates that if HB446 passes, and funds drawn from the
ECECF, SIC may need to restructure the fund to provide additional liquidity for these
distributions. Currently, the ECECF invests about 47 percent of its assets in long-term private
investments that are less liquid but provide higher risk-adjusted returns. To accommodate
increased liquidity needs, SIC might have to shift investments toward more liquid assets, such as
short-duration fixed income, which are less volatile but also lower yielding. This would reduce
the fund’s overall return expectations from the current 6.8 percent target, impacting the amount
of money available for early childhood programs in future years.
The assumptions built into the claims could lead to overestimations of actual program usage and
costs. The bill allows birthing parents to take up to six weeks of paid leave after the birth,
adoption, or fostering of a child, but eligibility is tied to employment history—requiring at least
six months of prior work—which could limit access for unemployed, part-time, or newly hired
workers. Some new parents may not qualify for paid leave given their employment history. This
may be a particularly relevant dynamic given New Mexico’s low labor force participation rate.
Additionally, many parents may choose not to utilize this benefit if they earn more by continuing House Bill 446 – Page 4
to work or have other leave accrued that pays a higher wage, or they may take shorter-duration
leave than assumed in the model.
The assumptions could also underestimate usage if certain family dynamics lead to multiple
claims per birth. In two-parent households, both parents may qualify separately. Some
individuals may strategically opt in before a birth, take leave, then opt out, increasing claim rates
beyond projections. The LFC model accommodates these variables by providing high-, middle-,
and low-uptake scenarios.
One key feature of this funding mechanism is that the bill does not specify a set dollar amount
for how much would be allocated to cover the costs of the six-week paid parental leave benefit.
Instead, the bill obligates the ECECF to pay for the benefit, regardless of the total cost. This
means, the fund must absorb the cost if more people claim paid parental leave than expected.
There is no cap or trigger mechanism in the bill to reassess the sustainability of these
expenditures. Unlike other paid leave proposals that set a fixed annual budget or adjust
contribution rates based on solvency calculations, HB446 places the entire financial burden on
the ECECF with no built-in review process.
The absence of a funding cap raises questions about long-term sustainability. While the ECECF
is a well-established fund that receives revenue primarily from oil and gas revenue and
investment income, its primary purpose before this bill was early childhood education and care
programs. Expanding its use to cover paid parental leave means that a significant portion of the
fund could be redirected away from its original mission, depending on the scale of paid leave
claims. Without an actuarial analysis or periodic reassessment of expenditures, there is no
guarantee the ECECF would continue to have enough resources to fund both early childhood
programs and paid parental leave indefinitely.
Additionally, the bill does not establish a mechanism to increase ECECF revenue if leave claims
exceed expectations. This contrasts with the supplemental paid parental leave program, which
requires employee contributions to build a dedicated fund. Because the six-week paid leave
program is entirely dependent on the ECECF, the state may eventually have to make difficult
choices about how to allocate funds between early childhood education and paid leave benefits.
The Early Childhood Education and Care Department (ECECD)expands on this:
Due to the sweeping applicability of the paid parental leave act to the vast majority of
employed and self-employed persons in New Mexico, appropriations from the early
childhood education and care fund would likely severely deplete the corpus of the fund.
Since employees and self-employed individuals are eligible within 12 months of any
birth, adoption, or placement of a foster child with a first-time foster parent, the estimated
costs of parental leave would need to consider average birth rates, adoptions within New
Mexico, and number of first-time foster parents within any given year. Calculations
should also factor that for each qualifying birth, adoption, or first-time foster placement,
there are likely two employees who can apply for paid parental leave.
If this act is implemented, it would redirect funds from childcare needs to cover parental
leave costs. If the bill aims to increase support without affecting the childcare provided to
children and families, it could still reduce the fund's longevity, and services for young
children and their families would be negatively impacted.
House Bill 446 – Page 5
Most of ECECD’s programs are currently funded by the early childhood education and
care fund. The early childhood education and care fund, which funds the early childhood
education and care program fund, is a key funding source ECECD uses to administer its
essential programs for families and young children, prenatal to age five. If funds in the
early childhood education and care fund are appropriated for the purpose outlined in
HB446, ECECD’s ability to provide key services, including home visiting, early
intervention, childcare assistance, New Mexico PreK, quality activities, workforce
development, and infant early childhood mental health consultation may be threatened.
Supplemental Paid Parental Leave Fund Solvency
Costing out an optional insurance pool like the Supplemental Paid Parental Leave Program
proposed in HB446 is particularly challenging due to the voluntary opt-in structure, which leads
to adverse selection and unpredictable participation rates. In an optional system, those most
likely to need the benefit—such as expectant parents or caregivers—are more likely to opt in,
resulting in a higher-than-average claims rate compared to a mandatory pool that spreads risk
across a larger population. This makes it difficult to accurately predict premium revenue and
benefit payouts, leading to financial instability if claims exceed expectations. Additionally,
without historical data or actuarial analysis to guide projections, estimating the balance between
contributions and claims is highly uncertain. The short contribution window from 2027 to 2030
further complicates accurate cost forecasting because it limits the time available to adjust
premiums or benefits based on actual uptake and usage patterns. This inherent uncertainty and
volatility in optional insurance pools pose significant challenges to ensuring the fund’s long-term
solvency.
HB446 does not explicitly mention an actuarial analysis or a formal recalculation of the
supplemental payroll contribution after the initial three-year contribution period (2027–2030).
While the bill specifies that employee contributions for the supplemental paid parental leave
program would end on January 1, 2030, it does not include a structured process for evaluating
whether contributions need to continue, decrease, or be replaced with alternative funding
sources.
However, the bill does imply that a financial review would take place. Specifically:
Section 5, Subsections D and E, establish that contributions from employees and self-
employed individuals would be collected for three years (2027-2030).
Section 4, Subsection B, states money in the supplemental paid parental leave fund is
appropriated for benefit payments and administrative costs but does not mention
reassessment or premium adjustments.
Section 14 directs the Workforce Solutions Department (WSD) to promulgate rules to
implement the program, which could include future solvency assessments.
Section 15 creates a temporary advisory committee to provide guidance on
implementation but does not mandate an actuarial study of fund sustainability.
HB446 does not provide a clear solvency equation or automatic recalibration mechanism for the
supplemental payroll contribution rate. This means that after January 1, 2030, the Legislature
would need to review financial data and decide whether to extend contributions, modify funding
sources, or allow the program to operate on existing reserves.
House Bill 446 – Page 6
ECECD also notes that, because participation in the supplemental paid parental leave fund is on
an opt-in basis, it is likely that the only employees or self-employed individuals who would
participate in the program would be individuals who are planning to have children, adopt, or
provide foster care in the future. New Mexicans who do not plan to have children, adopt, or
provide foster care would not contribute to the fund. The bill does not specify what happens if
contributions to the supplemental paid parental leave fund are inadequate to cover costs of the
benefit and administration of the entire parental paid leave program.
To estimate the financial sustainability of the supplemental paid parental leave program under
this bill, a model can be developed using a range of 0.25 to 1 claim per enrollee per year. This
range is informed by data from Washington State's and New Hampshire paid family and medical
leave (PFML) program, which found that self-employed, opt-in participants typically make
between 0.5 and 1 claim per year. New Hampshire’s voluntary PFML program reported a 26
percent uptake rate for individual voluntary participants. This reflects the reality that individuals
who voluntarily opt into the program are more likely to use the benefit, leading to a higher
claims rate than would be seen in a mandatory insurance pool. A 0.25 claim per enrollee scenario
represents a lower utilization rate, assuming some participants do not need leave, while a 1 claim
per enrollee scenario assumes maximum utilization, reflecting a pool heavily composed of
individuals expecting to need leave. This modeling approach allows for a more accurate estimate
of required contribution levels and the risk of fund depletion, accounting for adverse selection
where those most likely to use the benefit are overrepresented among enrollees. New
Hampshire’s entire opt-in program represents only 2.19 percent of their workforce, with over
half of that being state employees who are a part of an employer opt-in. Individual insurance
take-up, not including employer opt-ins, is only 0.07 percent of their workforce. The model uses
a 1.5 percent opt-in rate, which is likely an overestimation.
By basing assumptions on Washington State and New Hampshire’s observed claim rates, this
model provides a realistic framework for evaluating fund solvency and premium sufficiency
under varying participation and usage scenarios.
House Bill 446 – Page 7
2027 2028 2029 2030 2031
Eligible Workers 18,174 18,270 18,336 18,403
Leave Claims 4,543 4,567 4,584 4,601
Annual Benefits Paid 13,299,602 $ 13,910,230$ 14,495,918$ 15,227,663$
Estim ated Revenue to FMLA Fund 4,313,830$ 4,479,737$ 4,668,184$ 4,853,325$ 5,045,810$
Calendar Year Cash Flow 4,313,830 $ (8,730,270)$ (9,148,683)$ (9,545,526)$ (10,080,937)$
Fund Balance Prior Year - $ 4,313,830$ (4,416,441)$ (13,565,124)$ (23,110,649)$
FMLA Fund Balance (deficit) 4,313,830$ (4,416,441)$ (13,565,124)$ (23,110,649)$ (33,191,586)$
2027 2028 2029 2030 2031
Eligible Workers 18,174 18,270 18,336 18,403
Leave Claims 11,813 11,875 11,919 11,962
Annual Benefits Paid - $ 34,578,965$ 36,166,599$ 37,689,386$ 39,591,923$
Estim ated Revenue to FMLA Fund 4,313,830$ 4,479,737$ 4,668,184$ 4,853,325$ 5,045,810$
Calendar Year Cash Flow 4,313,830 $ (30,099,228)$ (31,498,415)$ (32,836,060)$ (34,546,113)$
Fund Balance Prior Year - $ 4,313,830$ (25,785,399)$ (57,283,814)$ (90,119,874)$
FMLA Fund Balance (deficit) 4,313,830$ (25,785,399)$ (57,283,814)$ (90,119,874)$ (124,665,987)$
2027 2028 2029 2030 2031
Eligible Workers 18,174 18,270 18,336 18,403
Leave Claims 18,174 18,270 18,336 18,403
Annual Benefits Paid 53,198,408 $ 55,640,922$ 57,983,671$ 60,910,650$
Estim ated Revenue to FMLA Fund 4,313,830$ 4,479,737$ 4,668,184$ 4,853,325$ 5,045,810$
Calendar Year Cash Flow 4,313,830 $ (48,629,076)$ (50,879,374)$ (53,033,279)$ (55,763,924)$
Fund Balance Prior Year - $ 4,313,830$ (44,315,247)$ (95,194,621)$ (148,227,900)$
FMLA Fund Balance (deficit) 4,313,830$ (44,315,247)$ (95,194,621)$ (148,227,900)$ (203,991,824)$
Low Uptake Scenario
Middle Uptake Scenario
High Uptake Scenario
Risk: Uptake Rates.
Predicting uptake rates for this program is challenging. Participation rates
would likely be influenced by demographics (e.g., age, gender, and family planning), income
levels, and the availability of employer-provided benefits, as well as public awareness and
cultural norms surrounding parental leave. Additionally, the cost of contributions (0.5 percent of
wages) may be prohibitive for lower-income workers, while higher-income employees may find
the benefit more appealing. Because the bill does not mandate an actuarial analysis or
recalculation of the contribution rate after 2030, there is significant financial uncertainty. If
uptake is higher than expected, the fund could face shortfalls, while lower uptake could result in
surplus reserves but may also indicate that the program is underutilized. This uncertainty
underscores the importance of close monitoring and potential legislative adjustments to ensure
the program’s long-term sustainability.
In Executive Order 2019-036, the governor created a 12-week paid parental leave program for
state employees after employees complete one full year in the position. The Legislature passed a
similar policy for legislative staff in 2022. In the executive order, the qualifying reasons for
taking leave are following the birth or adoption of a child. The uptake rate for the state’s parental
leave policy in 2023 was about 3 percent. The University of New Mexico (UNM) reported
between 4 and 5.5 percent uptake rate for its paid parental leave and paid extended sick leave
program across university entities.
House Bill 446 – Page 8
Risk: Insufficient Contributions.
This bill also allows individuals to opt into the supplemental
program. However, individuals only need to pay into the fund for six months to qualify for
benefits, opening the door for people, especially those who are expecting a child or intending to
adopt or foster, to pay in for six months, claim the benefit, and then opt out of the system. In fact,
other states have found extremely high uptake rates for opt-in participants because they can make
an informed decision on enrollment. For example, in Washington the uptake rates for elective
individuals are eight to 16 times higher than other covered employees, with an average of
between 0.5 and one claim submitted per employee per year. Washington requires elective
participants to enroll in the program for a minimum of three years to alleviate solvency issues
from “dine and dash.”
The bill caps the income that can be taxed for the program at the social security taxable income
level, which is $176.1 thousand in 2025.
1
This renders the SPPL payroll premium regressive, as
those with income higher than $176 thousand are taxed at a lower rate than those at lower
incomes. Additionally, taxes on higher incomes help sustain the fund, and capping the income
level that can be taxed may not be prudent in a low-income state. However, the maximum
weekly benefit is capped at the average wage, so it may not be fair to tax all income, especially
once the amount paid into the fund far exceeds the benefit one could possibly claim.
Appropriations
HB446 encumbers the early childhood education and care fund by obligating it to fund six weeks
of paid parental leave, regardless of the total cost or future revenue fluctuations. This creates a
mandatory appropriation requirement for future Legislatures.
There are no appropriations included in this bill for start-up costs. If the Legislature adopts this
bill, funding would need to be included in the General Appropriation Act of 2025 or other
legislation.
The General Appropriation Act, as adopted by the House, includes a $35 million special
appropriation from the general fund to the paid family and medical leave fund, for expenditure in
fiscal year 2026, to implement the Paid Family Medical Leave Act, contingent on passage of a
paid family medical leave bill. The appropriation would provide WSD with funding for start-up
costs associated with implementing the program. However, the appropriation would not cover all
projected start-up costs, and WSD would likely request additional start-up and recurring
operating costs in future years. The language in this appropriation may need to be adjusted to
1
https://www.ssa.gov/oact/cola/cbb.html
2025 Estimated Benefit and Contribution Amounts, by Income
Weekly
Wage
Weekly
Contribution
(.5%)
Weekly
Benefit
Annual
Wage
Annual
Contribution
(.5%)
3-Week
Benefit
Minimum Wage
$500.00 $2.50 $500.00 $26,000.00 $130.00 $1,500.00
Average Wage
$1,176.92 $5.88 $953.54 $61,200.0 $306.00 $2,860.62
High Wage (at
taxable limit) $3,386.54 $16.93 $1,176.92 $176,100.0 $880.50 $3,530.76 House Bill 446 – Page 9
apply to the parental leave program proposed in this bill.
Workforce Solutions Department
According to the Workforce Solutions Department (WSD), the estimated cost associated with
this new program for the first fiscal year would be approximately $13.75 million. This includes
direct operational staffing, IT Infrastructure support, and indirect cost for operational
sustainment—such as facilities and administrative services.
WSD used a variety of methods to compute staffing, including receiving data from states with
existing programs, evaluating the bill for program requirements and modeling staffing based on
the unemployment insurance staffing structure. Direct comparison to other states is difficult
because no other state houses the contributions, benefit administration, appeals, and enforcement
all in one agency. The fiscal implications of the bill are less than those of a parental and medical
program because of the limited scope of the bill. A complex administrative system to track
employees and employers would still be necessary. However, this system would not need the
features required to determine medical claims, and proof submitted with an application to
substantiate birth or adoption would be considerably simpler. The system would still contain
protected information, but it may not include information protected by the federal patient privacy
law called HIPAA.
WSD’s best estimate of staffing is 94 people, including all claims, supplemental leave plan,
appeals, and complaint-related staff. This is partially based on estimates the Paid Family and
Medical Leave program would receive about 45 thousand claims per year, and New Mexico has
about 22 thousand births per year. The staffing estimate is less than half (42 percent) of the
staffing estimate for other proposed paid leave programs that include both parental and medical
leave. As noted above, while IT costs would be somewhat less, the system development costs are
estimated to be more than half (58 percent) of the costs estimated for that program. WSD is not
sure whether the language of the ECECF would allow for appropriations for the program created
by HB446.
WSD’s most significant concern overall is how the program is to be sustained given that:
All administrative costs are to be paid from the supplemental paid parental leave fund. House Bill 446 – Page 10
HB446 does not provide for a solvency determination in connection with the program or
for the supplemental paid parental leave fund.
HB446 does not provide the authority for WSD to increase contributions to the
supplemental paid parental leave fund.
HB446 does not provide for contributions to the supplemental paid parental leave fund
after 2030.
HB446 does not provide for appropriations for the program. It is unclear what would
happen if the Legislature failed to appropriate funds for the base leave program.
The most significant administrative issue identified by WSD is how the department or any
administrator manages the accounts for the program. Without all employers and employees
paying into the program, the administrator would not have wage records and employment
verification. Yet, those items would be needed to establish a claim for base leave and calculate
compensation. If the intent is that the administrator must reach out to the employer for these
records each time a claim is filed, then the 10 business days for processing is insufficient. There
are also no provisions for dealing with nonresponse from an employer. WSD would hesitate to
rely solely on self-certification of wages and employment, due to the potential for abuse. WSD
assumes it would ultimately still be necessary to create an administrative system that would
enable tracking of wages for all employers and employees covered by the act. It would likely be
necessary to establish wage reporting through rule. Unemployment insurance records could not
be used for this purpose without a statutory change that would need to be approved by the U.S.
Department of Labor. Also, the bill covers employers not covered by unemployment insurance.
HB446 does not contain a mechanism for employers to opt out of the base leave program.
Employers who already provide equal or better plans would nevertheless be required to
participate in the program. Administrative and outreach costs are to be funded from the
supplemental paid parental leave fund, which contains contributions from employees and self-
employed individuals who opt into the fund. The supplemental paid parental leave fund can also
accept appropriations. It is unclear what happens if the fund does not have adequate resources to
support administration of the program.
HB446 does not create a dedicated fund for receiving appropriations for the base paid parental
leave program. This type of fund would be essential for keeping the contributions of opt-in
employees segregated from the state funding that would support the base parental leave program.
SIGNIFICANT ISSUES
Workforce
This bill could improve labor force participation in New Mexico. Research published in the
American Economic Review suggests short-duration paid leave in the months directly proceeding
and following a birth increases the labor force attachment of women who otherwise would exit
the labor force temporarily in the months around a birth. Analysis of the impact of paid leave
laws in California and New Jersey concluded short leave is unlikely to alter the behavior of
women who were planning to exit the labor force for prolonged periods after a birth; however,
reducing a brief interruption following a birth may have long-term employment benefits for
affected women who intended to remain in the labor force.
House Bill 446 – Page 11
The Public Education Department notes that paid leave could help recruit and maintain the
educator workforce in New Mexico. As of 2024, statewide New Mexico public schools have 737
teacher vacancies. Nearly three-quarters (74 percent) of the educator workforce in New Mexico
identifies as female, and women across the United States disproportionally identify as the
primary caretakers of children and other family members. In 2024, almost 60 per cent of unpaid
caregivers and over 80 per cent of paid caregivers identify as women while, according to the Pew
Research Center, women comprise approximately 77 percent of public education teachers.
Guaranteed paid family leave for qualifying events would be an added benefit for teacher
recruitment efforts.
Other Significant Issues
In Executive Order 2019-036, the governor created a 12-week paid parental leave
program for state employees after employees complete one full year in the position. The
Legislature passed a similar policy for legislative staff in 2022.
In 2019, the state enacted Section 10-16H-1 NMSA 1978, which expanded state
employee and public-school employee use of accrued sick leave for extended family
members.
In 2021, in Section 50-17-1 NMSA 1978 the state enacted the Healthy Workplaces Act
requiring all public and private employers to allow employees to accrue earned sick leave
of 64 hours per year.
As of January 2025, 13 states and the District of Columbia offer paid family and medical
leave. All state programs are funded through employee-paid payroll taxes, and some are
also partially funded by employer-paid payroll taxes.
Federal social security disability benefits apply to those with a terminal diagnosis or if the
disability diagnosis is determined to last at least 12 months.
The bill does not include guardrails around WSD’s authority to adjust the benefit in the
event of surpluses in the fund as opposed to adjusting the rate.
JF/RMG/hj/hg/sgs